|Economic situation in the municipality of Sliven|
ECONOMIC CHARACTERISTICS OF THE MUNICIPALITY OF SLIVEN
According to data by the National Statistics Institute, the Gross Domestic Product per capita in the region of Sliven for 2009 is 4 534 levs, in South Region – 7 424 levs, in the country - 9 007 levs.
|MAIN INDICATORS SLIVEN MUNICIPALITY|
|Gross Product – thousands levs||490230||642668||768509||946806||1068856||1213570||1044023||974601|
|Net Revenues from Sales – thousands levs||763226||964034||1155144||1418732||1618540||1707560||1612139||1474317|
|Number of Actively Employed Residents – annual average||28673||30408||30931||32852||33606||33953||31050||28405|
|Average annual wages - levs||2816||2981||3240||3521||3995||5046||5790||6083|
|Number of Registered Unemployed Residents||9817||10155||8834||6735||5339||5205||7455||7736|
|Expenditures on fixed assets (Capital Investments) - thousands||95754||107652||135277||170274||221626||256068||245382||137353|
During the period 2003 – 2008, Sliven Municipality has experienced a relatively high economic growth, which has also been seen for the overall Bulgarian national economy. Data by the Regional Statistical Office - Sliven for the period 2003-2008 confirms a trend of increasing net revenues from sales of goods and services in the municipality. Year-on-year growth for the period is as follows: 2004 - 26.3%; 2005 - 19.8%; 2006 - 22.8%; 2007 - 14.1%; 2008 - 5.5%.
The world financial crisis in 2009 had a reflection on the incomes of the municipality and they decreased as follows: with 5.6 % in comparison with 2008; with 8.6 % in 2010 in comparison with 2009.
In 2010 4987 number of businesses from the non-financial sector in the municipality of Sliven generated net sales of 1,474,317 thousand levs. The final financial result of their operations is a profit of 37,513 thousand levs. The total gross output in 2010 was 974,601 thousand levs. The main role had the industrial sector, which has produced 70.1 % of the total gross product of the municipality. Compared to 2009 the industrial production was with 70,479 thousand levs /or 9.4%/ less.
The manufacturing industry continued to be dominant in the economic structure of the municipality. In 2010 the manufacturing industry created 50.6 % of the total gross product of the municipality. 34.7 % of the working population are employed there. The industry controls 41.3 % of fixed assets. Overall the industry is unprofitable. The financial loss for 2010 was 1 047 thousand levs.
The Construction sector rates second in the local economy. It created gross product of 144,410 thousand levs, or 14,8% of the total gross product, which is 40,4 % less than the prior year. Construction employed 2 279 people in 2010. That number is 26,5 % less than the prior year. Net profit for the sector in 2010 is 7 732 levs, or 61,0 % less than the prior year, illustrating a substantial contraction in construction activity.
STRUCTURE OF NET REVENUES FROM SALES BY ECONOMIC ACTIVITY
|Economic activities (A21)*||2008||2009||2010|
|Agriculture, forestry and fisheries||1,8 %||1,9 %||2,6 %|
|Mining||0,5 %||0,2 %||0,3 %|
|Manifacturing||33.0 %||33.1 %||34,5 %|
|Production and distribution of electricity, heat and gas||1.3 %||1.5 %||1,9 %|
|Water supply, sewage, waste management and recovery||0.9 %||..||..|
|Construction||16.7 %||14.4 %||8,1 %|
|Trade; repair of motor vehicles and motorcycles||37.3 %||40.8 %||41,7 %|
|Transport, storage, post offices||3.4 %||3.4 %||3,2 %|
|Hotels and restaurants||1,2 %||1,4 %||1,6 %|
|Distribution of information; telecommunications||0,2 %||0,1 %||0,1 %|
|Real estate deals||0,5 %||1,3 %||1,0 %|
|Research and professional works||0,7 %||0,9 %||0,8 %|
|Administrative and support activities||0,3 %||0,7 %||0,8 %|
|Healthcare and social work||1.6 %||2.0 %||2.1 %|
|Culture, sport and entertainment||0.4 %||0.4 %||0,2 %|
|Other activities||0.1 %||0.2 %||0,2 %|
„ .. „ – Confidential data
*Note: 2008 data is taken from Classification of economic activities
According to the Regional Institute of Statistics, there is a clear trend of a continuous increase in amount of capital investments for the period 2003-2008. It increased from 95 754 thousand levs in 2003 to 256 068 thousand levs in 2008. A slight decrease is reported in 2009 – 245 382 thousand levs, or 4.2 % less than the previous year.
In 2010, the cost of acquisition of TFA were 44.0% less compared to 2009. The largest share had the following sectors: “Mining”; “Manufacturing”; “Water supply, sewage, waste management and recovery”; “Real estate deals”; “Trade, repair of motor vehicles and motorcycles”; “Transport, storage, post offices”; “Hotels and restaurants”; “Construction”.
The Regional Institute of Statistics - Sliven confirms the trend of continuous increase in the number of employees working under contract with their employers within Sliven Municipality during the period 2003 – 2008. From 28,673 in 2003, their number grows to 33,953 in 2008. In 2009, a reverse process is reported – a reduction in overall employment as a result of the economic crisis. The number of employees under contract is 31,050 in 2009. In 2010 it decreased to 28 405.
72.4% of total employees in the municipality work in the private sector. The largest number of employees in the Sliven region is focused in the municipality of Sliven - 75.2% of total employees in 2010. The sectors with largest share of working population are: “ Manifacturing" - 28.6 %, "Trade, repair of motor vehicles and motorcycles "- 17.1 %, "Healthcare and social work" - 9%," Education "- 8.4%," Construction "- 7.3%, "Transport, storage, post offices"- 4.8%, "Hotels and restaurants"- 4.1% , "Agriculture, forestry and fishing" - 2.9%.
According to data by the Regional Institute of Statistics, the average monthly salary in Sliven Municipality for 2010 is 507 lev, which is 21.8% lower than the national average of 648 lev. The average salary in the larger Sliven region for the same period is 7 lev at 500 lev. The highest salaries are reported in the following economic sectors: “Production and distribution of electricity, heat and gas”, “Finance and insurance”. The lowest salaries are still in the sectors: “Hotels and restaurants”, “ Trade, repair of motor vehicles and motorcycles”, “Administrative and support activities”.
According to data by the local office of the Department of Labour, the average annual unemployment rate in Sliven Municipality decreased during the period 2005 – 2008 as follows: 14.5 % in 2005; 11.4 % in 2006; 9.1 % in 2007, and 7.9% in 2008. The global economic and financial crisis affected the business environment in the country in early 2009 and consequently the employment situation in Sliven. The unemployment rate began to rise at the beginning of 2009 – from 8.5 % at the end of January of that year to 11.38% at the end of December 2009, which is the same rate as the unemployment rate in 2006. During 2010, the average unemployment rate reached 11.69%. There are slight differences in the unemployment rates throughout the year due to seasonality – increasing in the winter and decreasing in the summer. The number of registered unemployed according to the office of the Department of Labour, Sliven is 7,736 at the end of 2010. 26% of them are younger than 29 years old, 51% are women. As of the end of 2010, their number increased by 281, or 3.8 %, compared to 2009. The average annual unemployment rate for 2010 in the municipality of Sliven is 11.69%, 11.77% in the region and 9.47% for the country.