News

Labour demand remains high in 2023, but highly unevenly distributed across regions of the country and occupations.

Investment data by region for 2022 show a serious stirring of regional economies. While total investment, as measured by expenditure on acquisition of tangible fixed assets, is rising in almost the whole country (except in Razgrad district - details below), there are significant differences between districts in external investment. In as many as seven districts, cumulative foreign direct investment declines towards the end of 2022 compared to the end of the previous year - Vidin, Vratsa, Pleven, Silistra, Burgas, Stara Zagora and Blagoevgrad.

Two weeks ago, the IME, in partnership with "24 Chasa", held the first meeting of the local and executive authorities within the "Municipalities - perspective 2027" format. TheIME team presented the latest findings from the research on regional profiles and economic centers in the country, focusing on financial decentralization and the work of local authorities to attract investments. During the event, calculations were also presented on the effects of the possible transfer of 1/5 of the income from the taxation of the income of natural persons to the municipalities

Since 2012, the Institute for Market Economics presents the only study of its scale and depth on the social and economic development of the regions in Bulgaria. The regional profiles are based on 73 indicators representing the real picture in the 28 regions.

Tourism was undoubtedly the sector of the Bulgarian economy most affected by the covid-pandemic and restrictive measures. The suspension of flights, the disappearance of foreigners and the fear of contagion in public places led to an unprecedented decline in tourists, overnight stays and revenue to the extent that years of economic growth in tourist municipalities were erased. The Russian war in Ukraine also had its negative impact. However, indicators for summer 2023 point to an almost complete recovery of pre-crisis levels. Rumors of the death of online short-term rental platforms also appear to be greatly exaggerated.

In Sofia (region), several clear cores of economic activity, investments and jobs are taking shape, mainly thanks to the development of industry, logistics and mines in the wide periphery of the capital. Local labor markets have long since shaken off the negative effects of covid-19, and here are also some of the municipalities with the highest salaries in the country. However, the educational structure creates visible obstacles to further economic development, especially for smaller municipalities. Demographics are significantly more favorable than the rest of the country.

A few weeks ago, we looked at several alternatives to this year's minimum wage formula. We have demonstrated that it is possible to calculate the minimum wage, based on objective indicators of price dynamics, economic growth and labor market development, which avoids the problems that arise from its direct association with the average.