Home Local Economy

Local Economy

The Plovdiv region is one Bulgaria’s most vibrant and competitive, as local economic growth reached two-digit figures in some of the recent years. The local non-financial sector produced output for €7.3 billion in 2015 and contributed value added equivalent to €2.2 billion. The rise of productivity is ensured by abundant capital investment. Expenditures on acquisition of land, machinery and equipment exceeded €900 million in 2015.
The region of Plovdiv is a preferred investment destination by renowned global companies, seeking to profitably expand their operations and increase their presence in the global marketplace.Cumulative foreign direct investment in the real sector in the area reached €1.6 billion as of end-2015. Total foreign capital deployed in the Plovdiv region almost doubled between 2007 and 2011 and additional €330 million were invested in the local economy between 2012 and 2015.FDI in the region has grown at 11.7% annually for more than a decade.

Manufacturing

Plovdiv is the national champion with regard to industrial production and manufacturing in particular. Manufacturing companies generated revenues exceeding €4 billion in 2015, adding value equivalent to €863 million and providing jobs to more than 70 000 employees. Manufacturing constitutes one third of the revenues of the non-financial economy in the Plovdiv region. What is more, manufacturing contributes almost 40% of the value added by the real economy by employing one third of all employees and making 30% of all capital spending in the region. The industry in the region of Plovdiv is well diversified. The local companies are fully integrated in the global supply chain, serving both industrial and consumer users not only in Europe but also in emerging markets around the world. The region of Plovdiv has undergone noticeable industrial development over the last few years, resulting in more productive labor force and improved business profitability. Productivity gains are guaranteed by capital investments and process optimization. In addition to the food and metal manufacturing, other sectors that enjoy high investment activity are the production of machinery and equipment, paper, beverages, rubber, plastics and chemicals. These capital investments are mostly used to finance the purchase of state-of-the-art machinery and equipment, which improve the enterprises’ competitive position.

Business services

Business services in Plovdiv are rapidly evolving, taking advantage of the region’s strategic geographic location, excellent transportation links and advanced industrial development. Business-to- business (B2B) services generated €5.3 billion in revenues in 2015, of which 14% is value added, while employing 55.6 thousand people and making investments worth €360 million. Plovdiv is a transportation and logistics hub. This is why transportation and storage are the biggest business services in the region, providing 1/5 of the value added and 24.1% of the jobs in business services. Due to its central location and excellent transport connections, Plovdiv has burgeoning wholesale trade which is the second most important business service sector with 23.7% of jobs and 29% of value added. The region of Plovdiv has competitive companies providing professional and administrative services, which together employ 20% of all people working in B2B services. Modern business services have been enjoying rapid expansion over the last few years, as Plovdiv has become IT & BPO center preferred by domestic and foreign investors alike. IT and telecom companies employed 6% of people working in business services in 2015 and generated 9% of the value added in B2B services.