On 21.06.2024, at a press conference before the media, BCCI announced the publication of the 15th serial print issue of "Bulgaria in figures®" 2024 ("Bulgaria in figures24"), a registered trademark with a high rating, given by the state institutions and partner organisations. The edition reflects the main macroeconomic indicators of this country for the last 5 years like the investment environment, tourism, import and export, education and labour market, as well as other important aspects of the Bulgarian economy.
Special attention was paid to Bulgaria's ranking in international ratings, which can serve as an important guideline for investors, too, as well as to Bulgaria's critical positions in these ratings, which can be a good foundation stone for the government and institutions to draw up a government programme and measures to improve Bulgaria's ranking on an international level.
The Bulgarian economy is continuing its growth, which started in the last years, at a slower pace, though. In 2023, the GDP growth was 1.8% due to the global economic and political challenges, including the conflict between Russia and Ukraine and the tension in the Middle East and its impact on the European economy.
Despite these challenges, the domestic demand, private consumption and the export remain the main motors of growth. Bulgarian companies are successfully adapting to the new conditions and continue to grow, supported by the National Recovery and Sustainability Plan (NRSP).
Unemployment in Bulgaria remains at a low level, equalling 4.3% in 2023, as a result of the efforts to keep the workplaces and as a result of the measures taken during the pandemic. The labour market remains stable, with a slight increase to 70.7% in the employment coefficient.
Bulgaria continues to maintain one of the lowest tax rates in the European Union, with a flat tax of 10% on the personal and corporate income. The standard VAT rate is 20%, with a reduced rate of 9% for the hotel services and for some other products and services. The government has introduced a zero VAT rate on bread and flour as an anti-inflationary measure, which will come into force by the end of June, 2024. Municipalities with unemployment, which is 25% higher than the average for this country, have a 0% corporate tax to contribute to the economic development of these regions.
At the same time, Bulgaria maintains stability of the financial environment and the country's gross public debt is the second lowest one in the EU27, reaching 21.0% of GDP during the third quarter of 2023.
The average annual inflation in Bulgaria experienced a reduction in 2023, reaching 9.5%, after in 2022, it was at a level of 15.3%. Nevertheless, the inflationary pressure remains significant due to the global economic conditions. The government continues to implement measures to harness inflation and stabilise the prices of the basic goods and services.
Bulgaria's export reached EUR 44.3 billion in 2023, with a slight decrease of 7%, compared to the previous year. The main export partners of Bulgaria are Germany, Romania, Italy, Turkey and Greece. The import also shows a decrease of 10.2% and in 2023, the level of the import amounted to more than EUR 49.5 billion. The leading partners, that make imports to Bulgaria, are Germany, China and Turkey. The biggest increase in the import is in the sector of “Consumer Goods: Automobiles” (33%), followed by Vehicles (27%), while the biggest decrease is in the sectors of Mineral Fuels, Oils and Electricity (-42%) and Raw Materials (-15.5%).
The Bulgarian companies successfully managed to keep and increase their production levels, improving their positions in the international supply chains, which were disrupted due to the pandemic and the conflict in Europe. Foreign direct investments in Bulgaria for 2023 reached 3,619 million euro and most of them were attracted from Switzerland, Austria and the Netherlands.
The average monthly salary reached 1,016 euro, which represents a significant increase of 14.2% compared to the previous year. The workforce in Bulgaria consists of 3 million people, of whom 53% are men and 47% are women. The majority of the workforce (89%) have completed some form of higher or secondary education.
Bulgaria continues to develop and improve its position in a number of international rankings. In 2023, the country made significant progress in the Freedom of Speech Index (from the 91st to the 71st place), the Corruption Index (from the 72nd to the 67th place), the Energy Transition Index (from the 58th to the 48th place) and recorded an improvement in the Rule of Law Index (from the 60th place in 2022 to the 59th place in 2023). Nevertheless, Bulgaria registered a decrease in the Prosperity Index (from the 62nd to the 75th place), the Democracy Index (from the 57th to the 62nd place) and the Digital Competitiveness Index (from the 48th to the 55th place).
The latest data of IMD Switzerland from 18 June about the global competitiveness of Bulgaria for 2024, show that Bulgaria's position has dropped by 1 point (from the 57th to the 58th place), but now compared to 67 surveyed countries instead of 64, which can be noted as a kind of slight improvement. These results show both the successes, and the challenges to the country and provide a clear picture of the areas, in which Bulgaria achieves progress and those which require further efforts.
The publication refers also to the latest macroeconomic forecasts of the European Commission, expressed in the Spring Economic Forecast 2024, which indicate the following figures:
For the purposes of the Edition, BCCI also prepared a sample of the Industrial Parks Register, maintained by the Ministry of Economy and Industry; through its regional chambers, BCCI surveyed other industrial zones, too, and published the data in a special Register on its website and a sample of the data – in the “Bulgaria in Figures” publication.
For more detailed information, please refer to the links attached – the electronic edition of "Bulgaria in Figures 2024" – HERE.