site.btaThink-tank: Sofia Accounts for 43% of Bulgaria’s Economy

Sofia accounts for nearly 43% of Bulgaria's economy, outpacing the economies of other major cities, being five-fold larger than that of Plovdiv and seven times larger than that of Varna, said Petar Ganev of the Institute for Market Economics (IME) at a press conference in Sofia Municipality on Friday. The think-tank presented the latest data on the economic and investment profile of Sofia for 2022. The data are from the annual analysis that the institute prepares for the Sofia Investment Agency.

The role of Sofia's economy as a share of the country's economy has grown over the past 20 years from 25.6% to 42.8%, with 19.5% of the country's population living in the capital, Ganev said.

According to the latest data from the National Statistical Institute, Sofia's Gross Domestic Product (GDP) in 2021 stood at BGN 59, 172, 000, 000. The biggest growth was reported in the services sector, which is the leading sector for Sofia's economy, Ganev said.  

With foreign direct investment of 28.2 billion euros accumulated by the end of 2021 in the country, 14.7 billion euros are in Sofia.  

The IME's analysis shows a gradual recovery of tourism in the capital after 2020, when the COVID-19 pandemic hit. According to the data, around 2 million overnight stays were recorded in 2019, fewer than 800,000 in 2020, 1.2 million in 2021 and 1.9 million by December last year, with the total expected to exceed that of the year before the pandemic.

The IME analysis also includes demographic data about the population in Sofia. Adrian Nikolov of IME pointed out that the total number of residents of the capital is decreasing - from 1, 291, 591 people in 2021 to 1, 274, 290 million people in 2022. He recalled that the decline in numbers applies to the whole country. Compared with the rest of the country, the predominant age group in the capital is between 20 and 30, either studying or workng in the capital.

Nikolov also pointed out that in view of the continuing tendency of the population in Bulgaria to age, the rate in Sofia is lower. According to him, people of working age in the capital have decreased by 92,000.

Regarding wages, he pointed out that there was greater inequality in Sofia. The highest average salary is in the information technology sector - BGN 4,046, and the lowest in the hotel and restaurant sector - BGN 1,027.