The economy of Sofia remains the biggest regional economy in the country with 42.8% of Bulgaria’s GDP or over 51 billion. This is five times more than the economy of the second-largest region in our country, Plovdiv, and seven times more than
the economy of Varna region, shows our latest report titled “Sofia: Economic and Investment Profile 2022”, prepared by the Institute for Market Economics. The document is now available for download from our site here.
According to the analysis, the city’s economy is quickly overcoming the effects of the pandemic and is keeping the trend of population influx and attracting talent and workforce from the rest of the country providing much better opportunities for education and career development. The gross domestic product per capita reaches BGN 38.9 thousand, which is more than 2.2 times higher than the average for the country. Between 2017-2020, the gross domestic product per capita in Sofia recorded a growth of nearly 26% compared to a growth of 19% for the country.
Sofia gets ahead of all other economic centers in Bulgaria dominating the sector of Services, whose gross added value is over BGN 38 billion or over 86% of the added value in the city’s economy. The gross added value in the Industry sector reaches over BGN 6 billion and brings the remaining nearly 14% of the added value to the economy. Thus, the capital contributes to ¼ of the added value of Industry and more than ½ of the added value of Services in Bulgaria.
The economic profile of Sofia is strongly influenced by the dynamic development of the wide periphery of the Capital. Many industrial enterprises and logistics sites are located on the territory of neighboring and/or nearby municipalities. The added value of Industry in Sofia (region) reaches nearly BGN 2 billion, which is mainly formed by the operations of mining and processing enterprises in Sredna Gora and enterprises in industrial zones such as Bozhurishte, Kostinbrod, etc. The strong industry in the periphery of Sofia, as well as the daily labor migration to the Capital, support the thesis that the economy of Sofia should be considered as an investment destination that covers a wider territory than that of the Sofia Municipality itself.
More highlights
- In 2021, the economy of Sofia reports stable growth, with net sales revenues of non-financial enterprises reaching nearly BGN 171 billion – a growth of 22.6% compared to 2020.
- Revenues increase was seen across almost all sectors, with Trade, Energy, and Digital services making the biggest contributions in 2021.
- In total, the value of the enterprises’ production in Sofia reaches BGN 81 billion, taking into account a growth of 7% in 2021.
- The leading sectors in Sofia are Trade – 20% of the production of enterprises (BGN 8.5 billion added value) and ICT – 17% (BGN 8.3 billion added value).
- The digital sector reports growth for another year and is constantly increasing its share. In the coming years, the ICT sector is expected to become the one with the greatest contribution.
- Construction comes in third place with 13% of the output. This is the only sector with a severe drop in production and sales revenue for 2021 – a drop of around 25%.
- The added value of Professional activities reaches BGN 3 billion. The sector is influenced by the digital industry and more specifically by the development of the outsourcing industry in Sofia.
- In 2021, the trend toward centralization of an increasingly large part of Bulgaria’s exports in the Capital continues. The city contributes to 42 billion of the total 103 billion BGN of exported goods and services during the year. Leading are activities in Trade and Repairs, ICT, Manufacturing, Energy, and Transportation and Storage.
- The Capital is the district with the highest share of university graduates – over 40% of the population has a university degree
- For the first time, the gross monthly remuneration exceeded BGN 2,000. Salaries in Sofia are significantly above the average in all branches of the local economy. The indisputable leader is the ICT sector, where monthly salaries exceed BGN 4,000, followed by Finance and professional activities (BGN 2,600), as well as State administration (BGN 2,400).
According to the report “Sofia: Economic and Investment Profile 2022”, the Capital is the investment center in the country. In 2021, it concentrated 14.7 out of a total of 28.2 billion euros of foreign investments. Foreign capital in Sofia reaches 11.2 thousand euros per capita which is almost three times higher than the country’s average of 4.1 thousand euros.
More detailed data, charts, analyses and trends can be found in the full version of the report. Download the full version from our webpage here
