Regional Profiles of Bulgaria 2024: key aspects of the Institute for Market Economics study

The Institute for Market Economics (IME) has presented its annual report «Regional Profiles 2024», which provides a detailed analysis of the economic and social state of Bulgaria’s 28 regions. Based on more than 80 indicators, this report highlights both the successes of individual regions and the widening inequality between them.

Economic dynamics: the growing importance of the regions

Bulgaria’s economy is showing steady growth that extends beyond the capital. Although Sofia remains the economic leader with a 41% share of the country’s GDP, Plovdiv and Stara Zagora also post strong results.  

Stara Zagora relies on a powerful industrial sector, particularly in energy.  
Plovdiv demonstrates confident development thanks to the service sector, which accounts for more than 60% of the region’s economy.  

At the same time, agriculture remains the dominant sector in less developed regions such as Silistra. Differences in economic activity result in an uneven investment climate. The most active attraction of investment is observed in Sofia, Plovdiv and the Sofia region.

The labour market and standard of living

The labour market is expanding, yet regional disparities persist.  

Sofia and Varna show the lowest unemployment rates.  

Vidin and Montana face high unemployment and difficulties in creating new jobs.  

The gap in the average monthly wage remains significant: in Sofia it is almost double the figures of less developed regions such as Blagoevgrad.

Education and economic potential

The study underlines a direct link between the population’s level of education and economic development.  

Sofia leads with 54% of graduates among the population aged 25 to 64.  

A high level of education is also characteristic of Varna and Plovdiv, which contributes to their technological development.  

At the opposite pole are regions such as Montana and Pazardzhik, where a low level of education restrains opportunities for attracting investment.  

Demographics and migration trends

Migration plays an important role in shifting the demographic situation.  

Kardzhali, Burgas and Varna attract residents thanks to the development of tourism, the entertainment industry, and the hotel and restaurant businesses.

Vidin and Montana continue to lose residents because of low birth rates and high mortality.  

The highest share of elderly population (65+) is observed in Vidin and Gabrovo, which places additional pressure on the social sphere.

Life expectancy also varies: the highest figures are in Sofia and Kardzhali, and the lowest in Vidin and Vratsa.

Tourism as a catalyst for economic recovery

The tourism industry is showing positive changes, exceeding the pre-crisis figures of 2019. Burgas, Varna and Dobrich are at the forefront of the recovery, confirming the importance of seaside tourism.

Recommendations for regional policy

The «Regional Profiles 2024» report emphasises the need to develop targeted measures to reduce regional disparities. The main proposals include:  

• Raising the level of education and the availability of vocational training.  
• Increasing investment in less developed regions.  
• Supporting small and medium-sized enterprises, particularly in rural areas.  
• Developing the tourism potential of the regions.  

A comprehensive approach to solving the identified problems can become the foundation for sustainable growth and socio-economic balance across the whole of Bulgaria.