Financial and business news from Bulgaria

The huge wage gap in Germany and in our country, in just an hour...

In Bulgaria, labor costs are the lowest in the region, which is an undeniable advantage. Thus, our country has the opportunity to become quite attractive option for manufacturers around the world, notes Plamen Dimitrov, manager of the company for risk assessment Cofas for Bulgaria, writes “Trud”.
Labor costs in Bulgaria averaged around 6 euros per hour, company data showed. Of the EU countries closest to us is Romania, where an hour of work costs companies around 8 euros. For comparison in Germany for one hour employers give about 35 euros, and here besides the salary all taxes and health insurance and pension insurance are included.

The COVID-19 pandemic affected numerous companies in China that temporarily ceased production, and this in turn also affected the supply of goods. In this situation, Central and Eastern European countries are increasing their attractiveness as locations for relocation of production facilities, Cofas analysis showed.

The region where Bulgaria is also benefited from a number of other advantages in deciding where global companies should move their production. These are the membership of most countries in the region in the EU, proximity to Western Europe, relatively good infrastructure and attractive business climate.

Countries in the region have already attracted investments in automotive, electrical equipment, metallurgy and others. Currently there is a good opportunity for outsourcing services thanks to the digitization and the prepared footage in the IT sphere, points out Plamen Dimitrov.

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Curiously, the unemployment rate in Bulgaria in June continued to decline and reached 4.4% after rising to 4.8% in April, Eurostat data showed. There are only five countries with less unemployment in the EU. These are the Czech Republic (2.6%), Poland (3%), Germany (4.2%), Malta (4.2%) and the Netherlands (4.3%).

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