Regional Profiles
Български English
  • Български English
  • News
  • Home
  • News
  • Research
    • Research 2025
    • Research 2024
    • Research 2023
    • Research 2022
    • Research 2021
    • Research 2019
    • Research 2019
    • Research 2018
    • Research 2017
    • Research 2016
    • Research 2015
    • Research 2014
    • Research 2013
    • Research 2012
    • Neural Networks
  • Districts
  • Economic Centres
    • Economic Centres - 2023
    • Economic Centres - 2017
  • Municipal Analysis
  • Data
    • Regional Data
    • Methodology
    • Maps
  • About us
    • About Us
    • Contacts
    • References
    • FAQ
    • Events
    • Working Meetings
RSS

News

05.06.2020Bulgarian tourists cannot save the season on the Black Sea coast

There are no two opinions that the tourism industry and its inextricably linked activities are most severely affected by the coronavirus crisis and restrictive measures. The summer tourist season on the Black Sea coast seems almost lost, and the hotels, restaurants and bars that still decide to open will have to comply with the new post-epidemic conditions and realities - from increased hygiene requirements and providing space for their guests to increased fears and new habits of the guests themselves. In the present text we will try to make a rough estimate of the losses for the Bulgarian economy from the significantly weaker tourist season based on the data on overnight stays by the sea.

(to be translated)

To the top Read more

08.05.2020We win competitions, but we struggle with math

More than 55,000 children took the math exam after 7th grade in 2019. At this stage of their education, the math exam is mandatory, which is why their number is so large. The results of this mass test, viewed through the prism of the municipalities, are very worrying. In almost all cases the grades are significantly lower than those in Bulgarian language and literature. In no municipality do students score a very good 4.50 on the math exam. Only in 10 municipalities an average score over 4.00 is reported, incl. some very small, as well as Stolichna, Varna and Burgas. However, the last three are on the edge and are actually a few hundredths of a drop below the 4.00 mark.

In 2019, over 55 thousand students took their 7th grade State Matriculation Examinations (SMEs) in mathematics. The exams are mandatory at this stage in Bulgarian student’s education, hence the large figure. When disaggregated by municipality, the results of these country-wide examinations spark concern for the youth of Bulgaria. In almost every municipality in the country, grades achieved in SMEs in mathematics are far lower than those for SMEs in Bulgarian Literature; not a single municipality saw an average grade of 4.50 out of 6.00 or above in mathematics. In fact, an average grade exceeding 4.00 was not seen in all but 10 municipalities, with Sofia, Varna and Burgas barely making it above the threshold.

The decline in interest in mathematics becomes more evident in the next round of SMEs - taken after the 12th grade. At this stage in their education, students are not obligated to take an SME in mathematics, as they can instead opt to take a different subject, such as a foreign language. In 2019, almost 50 thousand students held an SME in Bulgarian literature. Out of those 50 thousand – how many do you think chose to take mathematics as their second subject? A grand total of 2255 – that is how many students bravely elected to take the mathematics examination right before their prom night. Roughly put, that is approximately 1 in 20 students. Last year across 161 municipalities, not a single 12th grade student opted to take an SME in mathematics.

A Well Prepared Few

It is worth noting that the Mathematics SMEs taken after the 12th grade attract only the best prepared students. Out of 104 municipalities with students taking the exam, 45 boasted an average grade exceeding 5.00 out of 6.00. Unlike for their 7th grade counterparts, the 12th grade Mathematics SMEs exceeded Bulgarian Literature SMEs in average grades in almost all cases. This comes as no surprise, as since the Mathematics SME is made optional, those who chose it are only those with the appropriate level of enthusiasm and ability.

The big picture is clear. When all students are put through the mathematics exam after the 7th grade, the results are greatly disappointing as the majority of students are underprepared. That changes when instead of all students, only those who actually want to take the mathematics exam – one in 20 12th graders - are put through it. This yields significantly better results. A trend worth noting is that the number of students taking the Mathematics SME after the 12th grade is declining annually, with a 200-student decrease seen only over the last year.

Now, in no way does this condemn the learning of languages, or namely the taking of language-based SMEs, as negative. On the contrary, the fact that the SME in English is the most popular elective for 12th graders is likely to reflect their tendency to want to study abroad. However, the decline in “mathematicians” – those who feel prepared and motivated to pursue mathematical disciplines belong high school – will one day hinder the economy, given that mathematics is crucial for careers in the IT and technology sector – one of the fastest growing sectors in Bulgaria. Moreover, it is within sectors such as this one that the country needs more high-performing students.  

Which schools take the crown in mathematics?

The high school which, by tradition, sends the most amount of 12th graders to the Mathematics SME is the Varna’s High School for Mathematics “Dr Peter Beron”, which saw 148 students attending the exam in 2019, achieving an impressive 5.46 grade average. At the school itself, around 1,200 students receive schooling in mathematical disciplines predominantly, with current plans to realise the building of a new campus for engineering and natural sciences.

Another contender for the crown is the Sofia High School of Matehmatics “Paisyi Hilendarski”, with an average grade of a near perfect 5.80 among 141 students taking the SME in Mathematics after the 12th grade. Other notable names include the “Akademik Kiril Popov” High School of Matehmatics, with 100 examined and given a grade average of 5.37, and the High School for Exact Science and Mathematics “Akademik Nikola Obreshkov”, sending 91 students to the exams and achieving a 5.65 average grade. 

The high schools with a combined focus on mathematics and exact sciences remain strong, however they gradually deviate from mathematics in favour of other disciplines. 2015 saw the number of 12th graders in high schools for Science and Mathematics taking an SME in Mathematics expectedly exceed those taking an English language exam. Such was the case with the Science and Mathematics high schools in Burgas, Blagoevgrad, Veliko Tarnovo, Vratsa, Gabrovo, Kyustendil, Haskovo and others. Conversely, in 2019, the balance was tipped in the other direction, with those taking English outnumbering the mathematicians.

In reality, there remain only about 4-5 high schools in which at least half of the students elect mathematics as one of their SME subjects.

What is the value added?

Currently, the Bulgarian economy is sending clear signals indicating a need for re-orientation towards the higher technology sector, especially towards the IT sphere and within Research and Development. Moreover, the same is seen in industries shying away from manual labour and more towards capital-intensive activities. Such a transformation requires a number of well-trained staff capable of participating in the process of technological transfer within the dynamic Bulgarian enterprises. To this end, fundamental mathematical knowledge is an integral part of this development. While linguistic knowledge is also useful, other specialist expertise is also needed.

And yet, at this stage, it appears that the Bulgarian education system fails to prepare students for this needed re-orientation, and in certain cases actually turns students off from studying exact sciences, in favour of studying humanities, economics and law instead. While those social science disciplines are still being preferred at elite institutions, the gap in IT technologies and applied sciences has become exacerbated in recent years. The ICT sector is attempting to bridge this gap in public education by creating its own academies and partnering with active educational institutions.

Unfortunately, the lack of a well-rounded educational foundation in mathematics is an obstacle in the way of such efforts. Currently, the school system places overwhelming emphasis on grammatical literacy and working with literature. It is crucial to exert the same emphasis on mathematics and natural science education. And who knows – it might have been that some of today’s lawyers and psychologists would have made better engineers or programmers, had equality in opportunities enlightened them to this path.

To the top Read more

27.03.2020The Strengths and Weaknesses of the Capital's Economy during the Pandemic

Over the past week, with the support of the IME, the Sofia Municipal Agency for Privatization and Investment prepared an analysis of the consequences for the capital's economy of the coronavirus epidemic and a summary of possible measures that can be taken to alleviate them. Here we present the most important conclusions from the economic aspect of the analysis and additional comments.

Over the past week, with the support of the IME, the Sofia Municipal Agency for Privatization and Investment analysed the impacts of the coronavirus pandemic on the Bulgarian capital’s economy. They extended their analysis to include potential measures to remedy those impacts. Here we present the most important conclusions concerning the economic aspect of the analysis and provide additional comments.  

Sofia’s reaction to the crisis is notably distinct from that of the rest of Bulgaria, owed to the capital’s economy being significantly different from that of other municipalities. In general terms, Sofia’s economy outperforms others in the size of its service sector, which comes at the expense of having a less developed manufacturing and agriculture sector. It is also worth considering tourism, which, despite being one of the presently growing sectors, is not a crucial player in the capital’s economy. Similarly, the economic dominance of the capital is determined by the large share of trade present in the total volume of its economy, which is not particularly affected.

In 2019, Sofia was hitting various labour market records. According to the latest data, employment rates of the capital’s working age population exceeded 78%, and unemployment rates had fallen to 1.6% (a little over 11,000 unemployed in population terms). However, with the inevitable economic contraction experienced by Sofia at the start of 2020, it appears that such labor records are matters of the past. Initial analyses by the IME reveal that about 86,000 employees, comprising over 10% of the labour force, were severely hit by the crisis. This figure includes 35,000 people within the almost completely inactive hospitality sector – mainly hotels and restaurants – and 10,000 within the cultural sector, comprised mainly of cultural and sport activities.

Undoubtedly, the most affected branch of the capital's economy is tourism. Although, it is a rather small branch - according to the latest calculations, it accounts for about 2.5% of the capital's economy, measured by value added. The negative impacts on the sector, namely the dramatic decrease in manifest themselves along two dimensions: the shrinking income of potential tourists and their increased fear of travel. Tourist associations’ forecasts, as quoted by SOAPI, set the maximum potential losses for the economy of Sofia, in case of a long-term quarantine, at over BGN 175 million. An additional adversity is created by the fact that a large portion of employees of the tourism sector are lower-skilled and lower-educated, which impedes their potential re-assimilation into sectors outside tourism. When assessing the risks for the tourism sector, it is important to remember that Sofia hosts the biggest international airport in Bulgaria, which will be seeing less and less traffic passing through. 

Trade is the largest sector of the capital's economy, forming almost one fourth of its entire volume, and employing 180,000 people. At this stage, the impacts on the retail aspect of trade, namely dealing with sales of food and drinks, seem to be relatively weak; anecdotal evidence show that, against the background of the transition of many companies to remote work, sales of equipment were also not heavily impacted. Conversely, we have every reason to expect a decline in trade of luxury goods (and many non-food products) in the near future. It is also worth noting the change in the sales model of many retail firms – evidence points to an increased demand for online purchases, and accordingly - a significant increase in sales of companies that use this business model, especially in food. This rings especially true for Sofia, as it has the highest Internet penetration in the country and the highest density of providers.

The flexibility of Sofia’s economy is owed largely to adequately developed ICT sector, as well as to outsourcing of services; put together, their weight in the capital's economy is up to par with that of the trade sector. Against the background of limited social contacts and depleted mobility, this sector is most easily able to move to a model of remote work and to resume its functions. The risks to which these sectors are exposed stem mainly from the potential decline in software orders amid the global economic crisis, in tandem with the fact that the ICT and outsourcing sectors in Sofia operate almost exclusively by exports, making them particularly vulnerable to economic shocks in Western Europe and USA.

While the picture painted so far may not appear all bad, it is worth noting that freelance professions, which account for a significant portion of the capital’s economy, are exposed to significant risks. They include a range of business and technical services, from lawyers and notaries to architects and business appraisers. The suspension of transactions, and more generally the expected medium-term contraction of new investment initiatives, will exert relatively strong downward pressure on the demand for such services. The same goes for the media and advertising sectors, as advertising budgets are subject to the first cuts in the event of a "belt-tightening" approach by businesses.

It is harder to predict the impacts on sectors such as manufacturing, given that their operations depend more on the severity of measures to limit the spread of the virus; for example, tightening of measure to constitute to full quarantine will make the work of the sector virtually impossible. The same applies to the construction sector to a certain extent – while ongoing construction projects are being completed, a delay of new construction projects, as well as relevant repair activities as a result of postponed investments, can be expected.

An important advantage of the capital’s economy is the relatively high capacity of its labour market to accommodate for and take on new unemployed and to account for many emerging vacancies. Predicting how many vacancies will decorate the labour market in a post-pandemic Bulgaira, as well as how many of them will be filled, is purely speculative work. However, until recently, the capital's labour market managed to integrate virtually all workers with relevant education and skills, and its ability to continue to do so will play a key part in Sofia’s post-crisis recovery.

In summary, thanks to the developed sectors within the capital’s economy, namely the services sector, the ICT sector and the trade sector, Sofia fosters high flexibility and is better prepared to face the inevitable blow delivered by the coronavirus pandemic and any resultant restrictive measures. However, this does not mean that the damage, especially in the short term, will not be significant.

To the top Read more

06.03.2020Foreign Capital Defines the Regional Map

he development of the Bulgarian economy in the last 20-30 years is largely dependent on the inflow of foreign capital. The breakdown of foreign direct investment (FDI) by municipalities gives an interesting insight at the regional development and largely explains the accumulated differences in the country. In this case, we are not just looking at current flows of foreign investment, but all cumulative foreign direct investment - a total of 24.9 billion euros , at the end of 2018. It is important to look at these data as a whole, where the capital is heavy dominates and weighted in relation to the population, which allows to see interesting regional features.

(to be translated)

To the top Read more

21.02.2020Labor Market at (at least) Two Speeds

The analysis of the regional labor markets clearly demonstrates that for most of them the last few years have been a period of unprecedented rise and record achievements. However, this does not mean that at the same time there are no opposite processes within the districts themselves, and the municipalities that make them up are not developing at different speeds. For this reason, we will focus in more detail on the data of the Employment Agency, which examines in detail the specifics of unemployment in municipalities.

(to be translated)

To the top Read more

14.02.2020 The Potential Beyond Sofia - A Look to Plovdiv and Varna

One of the main highlights in the recent IME "Regional Profiles" report is the observation that the periphery of the major economic centers in the country is seriously advancing. Sofia region, which hosts both the industrial zones of Sofia - for example in Bozhurishte and Kostinbrod, and part of the heavy industry of Srednogorie - for example in Pirdop and Chelopech, is already catching up with Sofia-capital both in terms of employment and per capita output. However, even this conclusion was reflected in the context of the discussion on regional differences and the gap between the capital and all other municipalities. The other centers with a large periphery - mainly Plovdiv and Varna, are often neglected, although in recent years they have shown very good dynamics.

(to be translated)

To the top Read more

14.02.2020Small Municipalities Are Leaders with Strong Inudustries in 2018

The leaders in wages level are relatively small municipalities with large enterprises - mainly in the energy and mining industries. Economic centers that have a developed industry on their periphery also have a very serious "weight" on the map.

The English translation will be available soon.

To the top Read more
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • ...
  • 45
  • 46
Download a PDF

Latest news

Math talents on the edge of the map 30.06.2025

If you think that mathematics can only be taught and learned well in mathematics high schools or elite...

The municipalities need more own resources and a share of revenues from personal income taxation 26.06.2025

IME analysis shows opportunities for expanding municipalities' financial autonomy. The budget expenditures...

Yambol District - improvement in education results and rising wages, but limited investment and little tourism 06.06.2025

Gross domestic product, incomes and pensions in Yambol district continue to grow. The share of the working...

Shumen district - growing employment and fast administration of justice, but poor education and little tourism 30.05.2025

The gross domestic product, incomes and pensions in Shumen district continue to grow. The increase in the...

Download a PDF
Regions in Bulgaria
  • Blagoevgrad
  • Burgas
  • Varna
  • Veliko Tarnovo
  • Vidin
  • Vratsa
  • Gabrovo
  • Dobrich
  • Kardzali
  • Kyustendil
  • Lovech
  • Montana
  • Pazardzhik
  • Pernik
  • Pleven
  • Plovdiv
  • Razgrad
  • Ruse
  • Silistra
  • Sliven
  • Smolyan
  • Sofia
  • Sofia (capital)
  • Stara Zagora
  • Targovishte
  • Haskovo
  • Shumen
  • Yambol
All categories
  • Economic development
  • Income and living conditions
  • Labour market
  • Investments
  • Infrastructure
  • Taxes and administration
  • Administration
  • Social development
  • Demographics
  • Education
  • Healthcare
  • Security and justice
  • Environment
  • Culture
A project of
Institute for Market Economics
Sponsored by
“America for Bulgaria” Foundation
2025  ©  Institute for Market Economics
Created by MTR Design