Sofia, Varna, Burgas Bulgaria's Major Investment Destinations - Report

Three major cities – Sofia, Varna, and Burgas – are increasingly becoming Bulgaria's key investment destinations, a trend that is exacerbating the country's depopulation, according to a report of the Institute for Market Economy (IME), a Sofia-based NGO.

Because of the economic crisis and ensuing unemployment a greater percentage of Bulgaria's population is seeking relocation opportunities in Sofia, with Varna and Burgas on the Black Sea coast also attracting some people as well as investments, the IME report entitled "Regional Profiles: Development Indicators" has concluded.

According to the report, the Western Bulgarian city of Kyustendil is generating the lowest interest among investments.

The conclusions of IME's report have also indicated that Bulgaria's demographic crisis is becoming worse because of the dire economic situation in a number of provinces around the country.

"We are observing an overall worsening of the demographics in all regions of Bulgaria, no exceptions there," Desislava Nikolova, chief economist of IME, told Darik Radio.

"The only districts that with positive mechanical population growth are Sofia, the capital, Varna, and Burgas. As far as Varna and Burgas are concerned, this trend has become more tangible only after 2007," shed explained.

In her words, a number of districts in Northwestern, Northeastern, and Southern Bulgaria – Vidin, Vratsa, Razgrad, Smolyan, Yambol, and Sliven – are undergoing the fastest depopulation.

The Institute for Market Economy recommends that in order to improve the living and investment conditions across the country the Bulgarian government should go for greater financial, economic and social policy powers for the local authorities.

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