Economy of Plovdiv
Plovdiv’s economy produces goods and services worth €4.5 billion annually. The local economy has seen a GDP growth of 6.6% for the period 2010-2018. IT and professional services together generate an annual added value of € 310 million. Plovdiv District’s GDP represents 7,6% of the Bulgaria’s economy, making Plovdiv’s revenue the second largest after the capital of Bulgaria – Sofia.
The Plovdiv region has a well-balanced mix of manufacturing and services. Production contributed to the creation of about 43% of the economic product in 2017. The relatively high share of the processing industry, compared to other regions in Bulgaria and Europe, is an example of Plovdiv’s leading position in the production on a national and Pan-European scale. Plovdiv is also a well-developed construction center, producing about 5% of the added value of the region. Unlike other regions Plovdiv focuses mainly on non-residential construction and industrial spaces in particular. Due to its strategic location and excellent connectivity, the Plovdiv region has established itself as a leading transport and logistics center. Transport and logistics companies account for 7% of production in the regional economy.
Boasting a myriad of ancient historical sites, Plovdiv is a preferred tourist destination for both foreign and Bulgarian tourists. When it comes to the former the city marks a 28% growth since 2015. Local hotel business adds 3% to the annual production. 12% of the region’s production is generated by retail trade.
Information technology and business services are among the most dynamic sectors in recent years, providing new job opportunities and creating added value.
The local IT sector is one of the few sectors that has experienced steady growth. Business process outsourcing is another rapidly growing service sector that takes advantage of having a young and well-educated workforce. Bulgaria as a whole is very competitive globally and is ranked among the most attractive outsourcing destinations in Europe and in the world according to the Global Services Distribution Index compiled by the international consulting company ATKearney. According to NSI data, the sector creates nearly 27% of the value added in the local economy.
Investment activity in the Plovdiv region has been high in recent years. Purchases of fixed assets in the region amount to more than EUR 861 million annually. Plovdiv has a very balanced mix of investments that are spread across different sectors of the economy. About 23% of the investment, or € 185 million, is devoted to the production of equipment and machinery that enhances the productivity of local businesses. About 5% of all acquisitions of fixed assets are made by IT and business services companies.
More information about Plovdiv as a investment destination: https://invest.plovdiv.bg/en