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The team of Sofia Investment Agency published its new report titled “Manufacturing Industry in Sofia”. The paper contains data and outlines the trends in the processing industry in the capital city of Bulgaria. Despite its share of less than 20% of the local economy, in recent years the sector has been increasing its weight in both the total output and the export of the city.
Key report highlights
- The manufacturing industry is increasing its weight in the city’s economy – it produces more than BGN 8.5 billion in output or 14% of the city’s economy, up from 12.7% in 2012.
- The leading segments of the manufacturing industry in Sofia are food production (BGN 1.4 billion), base metals (BGN 1.1 billion) and electrical equipment (BGN 661 million).
- The production of highly technological sub-sectors with a relatively high added-value has been growing rapidly in recent years – production of metal products, computer and communication equipment, electrical equipment, machinery and equipment grew by over 50%.
- Largest manufacturing companies operate in the sub-sectors of metal manufacturing, followed by pharmaceuticals.
- Micro-companies have the largest share in the manufacturing sector in Sofia (82%).
- The highest number of new companies in the manufacturing industry of Sofia were created in the segments of non-motorised vehicles and processing of skins.
- The manufacturing sector employs 70 000 people or 13% of all employees in the city, with most of them working in medium-sized firms.
- Employment is concentrated in sub-sectors of food and metal production – 12 000 and 7 000 people respectively.
- The average pay for the whole manufacturing industry was BGN 1 226 per month, thus remaining close to, but below the average salaries in Sofia.
- The highest average salaries were registered in the sub-sectors of computer equipment production – BGN 1989 gross in 2017.
- Cumulative foreign investment in the manufacturing industry reached EUR 1.7 billion at the end of 2017 or 16% of all FDI in Sofia.
- A significant part of the manufacturing industry of Sofia is export oriented and the sector has an increasing weight in Sofia’s total exports with over half of the total manufacturing output.
- Base metals, electrical equipment, computer and communication equipment are the products accounting for the majority of the sector’s export.
More detailed data, charts, analyzes and trends can be found in the full version of the report.
The ‘Manufacturing Industry in Sofia’ report was developed by the Institute for Market Economics for Sofia Investment Agency.
If you have any questions related to the report or other data regarding the investment climate in Sofia, do not hesitate to contact our team at email@example.com.