The highest average gross salaries in Bulgaria in 2023 are reported in Chelopech, Kozloduy and Sofia, according to an analysis by the Institute for Market Economics (IME), prepared based on data from the National Statistical Institute.
The top positions in terms of average gross monthly salaries for a consecutive year are mainly small municipalities, in which large companies operate, forming a significant part of labor income in the region. This includes municipalities from the Srednogorye region with a highly developed mining and related processing industry such as Chelopech (first place with 3,751 leva), Pirdop (fifth place with 2,799 leva) and Panagyurishte (eighth place 2,436 leva), as well as municipalities strong in energy such as Kozloduy (second place with 3,421 leva), Radnevo (fourth place with 2,803 leva) and Galabovo (sixth place with 2,530 leva). Traditionally industrial municipalities such as Devnya (seventh place with 2,504 leva) and Bozhurishte (ninth place with 2,227 leva) also find a place in the top 10.
The exception is Sofia, which in 2023 ranks third with an average gross monthly salary of 2,855 leva. The capital concentrates 34% of all employees in the country and significantly outperforms other major economic centers in terms of salary levels.
According to the analysis, an interesting shift compared to last year is the drop in the Knezha municipality, specializing in grain production and vegetable oil processing, from third to tenth place, or from 2,813 leva in 2022 to 2,176 leva in 2023. This is another example of the effects of the one-time nature of the boom in the agricultural sector for 2022, according to the IME.
In 2023, salaries increased in 258 municipalities and decreased in only 6, with these numbers being approximately the same as in the previous few years. In as many as 247 municipalities, the growth in salaries for the year exceeded 9.5 percent, which is the average annual inflation for 2023. However, there is also a certain element of catching up with the general price growth - in 2022, only in 55 municipalities did wages rise at a higher rate than the average annual inflation, the analysis says.
The catching-up is also evident from another observation - in 194 municipalities, the annual rate of wage increase in 2023 is higher than that achieved in the previous year.
In 2023, a slowdown in economic growth is observed in a large part of the country's territory. This is shown by the updated data on the added value, sales revenues and investments of non-financial enterprises. If in 2022, in the vast majority of municipalities, a number of indicators of the economic activity of enterprises reported growth, then in 2023 in far more municipalities, a contraction is observed.
The contrast is particularly great in the dynamics of added value, which in 2022 grew in 234 municipalities for which data has been published, and decreased in 18, while in 2023, growth was observed in only 144 municipalities, and a decline in 105, the analysis says.
According to the IME, in a large part of the municipalities, the contraction can be explained by the fact that they are located in the northern part of the country, where the role of agriculture is greater, and accordingly, after the sharp price shock in 2022, the effect of the cooling in 2023 is now being reported on international markets.
A similar trend is also revealed by indicators for manufactured output, sales revenue and export revenue – widespread growth in 2022, followed by a decline in many municipalities in 2023, especially in northern Bulgaria, the analysis indicates.