Generating a total GDP of USD20.8 billion in 2016 (40% of Bulgaria's total), Sofia stands as Bulgaria's largest economic centre. However, despite the capital's dynamic outsourcing industry (Sofia allocates 85% of all outsourced workers in Bulgaria, servicing such companies as AIG, IBM and Cisco), Sofia fares poorly compared to other EU capitals in terms of wealth. In 2016, Sofia's GDP per capita of USD15,600 stood 37%, 33% and 12% below that of Warsaw, Bucharest and Zagreb, respectively.
You have no recently viewed reports.
Why not browse through our Featured or Trending Reports to see what we have to offer?
Boasting some of the lowest corporate taxes in the EU, the Bulgarian capital also offers a very largely educated labour pool - 40% of the city's population possessed a higher level education degree in 2016. With such a positive business environment, the city attracts numerous large global companies (HP, UniCredit and BnP Paribas) and boasts labour productivity levels 133% higher than in the rest of the country in 2016.
With the best paid sectors greatly focusing in Sofia, rather than in other parts of Bulgaria (22% of all workers in Sofia were employed in the business services sector versus 6% in the rest of the country, in 2016), Sofia households' average annual income reached USD13,200, 47% higher than in the rest of the country in 2016. However, the income did decrease by 8.7% in constant terms, over 2011-2016.
As of 2016, consumer expenditure (transport and housing excluded) per household was 38% higher in Sofia than elsewhere in the country. Recreation/ culture, hotels/restaurants and alcoholic beverages were among the largest discretionary spending categories in Sofia, allocating 9.6%, 7.4% and 6.8%, respectively, of the total expenditure in 2016.
In 2016, the combined consumer expenditure on transport and housing per household was 44% higher in Sofia than in the rest of Bulgaria. Transport was the main driver of the discrepancy (separately, transport expenses in Sofia are 81% higher than in the rest of Bulgaria in 2016) due to very high motorisation rates in the capital.