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17.11.2020Five Trends for the Economies of Sliven and Yambol

Sliven and Yambol are as similar as they are different. Although both districts undoubtedly show improvements in their economic and social development in the years before the onset of the new economic crisis in early 2020, they lag far behind the more developed areas in southern Bulgaria. If we did not know where they are geographically, and judged only by the data, we would rank them close to the economically backward regions in Northwestern Bulgaria. Moreover, the events of the last few months have further called into question the catching-up of more developed areas.

(to be translated)

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30.10.2020Which is the second city

Immediately before the outbreak of the pandemic, we focused on the development of Plovdiv and Varna as the two strongest economic centers in the country after the capital (see "The potential beyond Sofia - a view of Plovdiv and Varna"). An interesting moment in their presentation is the competition for the title "second largest city in Bulgaria", which is inevitable in recent years. Given that a census is forthcoming in 2021 and taking into account the current socio-economic processes in Plovdiv and Varna, we can look at this dispute and bring some clarity.

Just before the pandemic broke out, we focused on the development of Plovdiv and Varna as the two strongest economic centers in the country after the capital. In recent years, the contest for the title “second most populous Bulgarian city” has emerged as an interesting highlight of their comparative development. In view of the forthcoming census in 2021, and the ongoing socio-economic processes in Plovdiv and Varna, we can shed some light on the dispute.

In the first place, it is important to note that we focus on the city in particular, rather than on the population of the district or municipality. For this purpose, we have used census data from the National Institute of Statistics (NIS), and ongoing observations for the last 10 years. We have not used data from the Head Directorate of Civil Registration and Administrative Service (CRAS) for permanent and current addresses. Despite this being a viable alternative, we chose the longer-term historical order, based on censuses, as our foundation. Population data, however, does not account for the tourist flow, which would be a substantial boost for Varna in the summer season.

The national common sense contends that Plovdiv is the second largest city in Bulgaria. Successive censuses throughout the years verify this claim. For most of the 20th century, both cities steadily increased their population. Plovdiv maintained its lead, while the greatest difference in the censuses is from 1946, when it almost totals 50 thousand citizens – 123 thousand in Plovdiv versus 77,000 in Varna. The last census from the communist period (conducted 1985) documented incredible development in both cities, all the while the absolute numerical difference remained similar – 342 thousand in Plovdiv compared to 302 thousand in Varna. The transition generated diverging dynamics for both cities.

After the changes, Plovdiv’s population ‘froze’, while Varna’s continued growing. In reality, Varna is probably the only other city apart from Sofia, which has invariably augmented its population in every next census for more than 100 years. Censuses from 1985, 1992, 2001 and 2011 attribute a population of 338-342 thousand to Plovdiv (338 thousand in 2011). At the same time, Varna gradually expanded its population from 302 thousand in 1985 to 334 in 2011. Thus in the last census the difference between the two cities barely reached 3,283 people.

Following the logic of the recent censuses, Varna is projected to overtake Plovdiv in population in the 2021 census. Yet this remains uncertain. The last 10 years have changed the socio-economic trajectory of certain regions, and one of the most explicit changes is the success of Plovdiv. The city ‘under the hills’ managed to restart its growth, and resumed attracting population. This is evident from the economic processes, such as the development of manufacturing in Plovdiv’s periphery, and from the newly opened vacancies in the digital sector. Pro-cultural tendencies also contributed – the emergence and successful development of “Kapana” as the quarter of creative industries, for instance. Plovdiv has always been a strong cultural and manufacturing center, but the last decade’s unambiguously upturning dynamics has “overturned” the city’s demographics.

In the meanwhile, Varna, is not in a position to change the trajectory of its demographics, which is either way supported by the continuous influx of young people, attracted by the “summer capital” of the marine capital and the six universities it houses. Similar to Plovdiv, Varna’s uptake was also supported by a strong manufacturing in the wider periphery of the city, growth in the digital sector, and developments in the cultural sphere.

But how big exactly is the growth of the last 10 years?

Current NIS population data indicate a relatively modest growth in Varna, and a more substantial growth in Plovdiv in the last decade. Hence the expectation Plovdiv will keep its second place. The issue here is, that two consecutive censuses (from 2001 and 2011) reveal, that the pertinent NIS data underestimates Varna’s population and overestimates that of Plovdiv. For instance, in the period 2001-2011, NIS recorded an annual increase in Plovdiv’s population, although the eventual census showed it had slightly shrank compared to 2001.

Everything said so far proves that the contest for the second city is not decided. Varna demonstrates better long-term trends in the last 30 years, but Plovdiv has marked a restart in the last 10, and is also striving ahead. Both cities featured distinguishably good years prior to the pandemic, and are profiting from the dynamics of the digital sector in Bulgaria as well. The effect of the pandemic can play a critical role in this competition – a strong hit on tourism is accompanied with prospective stimulus for migration of citizens employed in the digital sector. On a broader regional scope, however, the rivalry of the two cities is healthy, as it takes away the excessive focus from the capital, and provides alternatives for regional development in the country.

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16.10.2020Did the pandemic bring people to the villages

Shortly after the end of the state of emergency in the country, an IME team held a working meeting with over 20 mayors of town halls and deputy mayors from the villages in the municipality of Gabrovo. During the conversation it was commented several times that the pandemic has led to a revival in the villages and to an increase in registrations at the current address. Months later, we decided to verify this statement by comparing it with official data. For this purpose, we use the quarterly data on the population from GRAO and compare the data by settlements as of March 15 and June 15, 2020.

(to be translated)

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14.10.2020Macroeconomic analysis for the needs for preparation of the budget of Sofia Municipality for 2021

The preparation of the budget of Sofia Municipality for 2021 will be a challenge for several reasons. In the first place is the lack of a developed macroeconomic framework for 2021 at the national level. In second place is the uncertainty surrounding the implementation of the 2020 budget and the possible need for a second update at the end of the year. Thirdly, it is due to the ambiguity of the development of the pandemic and the danger of a new series of quarantine measures on economic life.

(to be translated)

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09.10.2020Large differences in access to doctors between areas

The public health crisis of recent months has brought to the fore a number of health system problems. Among them is the provision of appropriate staff and equal access to health care. However, as these problems do not affect the individual districts of the country equally, the current text focuses in greater detail on the access to specialists in the different districts of Bulgaria.

(to be translated)

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18.09.2020The labor market is recovering in the tourist season, but the future is far from cloudless

Half a year after the beginning of the state of emergency and the accompanying economic crisis, the labor market is showing signs of recovery. However, regional dynamics in unemployment levels reveal deepening problems at the municipal level.

(to be translated)

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18.09.2020Where are the regions heading for the next seven years?

This year passes in the conditions of some significant events that dominate the economic and public agenda in our country - the admission to ERM II, the pandemic and the economic crisis, the protests and the resignations of the government and the Prosecutor General. Along with these topics, however, there are other processes that are also of great importance for the development of the country. This is exactly the case with the regional planning for the next 7 years (for the period 2021-2027), which will predetermine the trajectory of development of the municipalities and regions in our country.

(to be translated)

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Latest news

Sofia District - high investments and rising wages, but poor education and bad roads 25.04.2025

Sofia District recorded the lowest growth of GDP per capita and lost its second place in the ranking. Wages...

Smolyan district - good education and low crime rate, but ageing population 22.04.2025

Gross domestic product, wages and pensions in Smolyan continue to increase. The poverty rate is decreasing....

Sliven District - good demography and growing employment, but little investment and poor education 14.04.2025

Although the gross domestic product per capita in Sliven is increasing, it is among the lowest in the...

Silistra District - wage growth and poverty reduction, but weaknesses in demography, education and health 07.04.2025

Wages and pensions continue to increase, but are still relatively low. The poverty rate in the district is...

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