Economic features

Municipality of Gabrovo is one of the well-developed economic centers in Republic of Bulgaria with rich experience and tradition in industry development. For the past years the municipal economy has been following the tendencies inherent in the macro-economic level.

According to data provided by the National Statistical Institute (NSI) from 2007, totally 3232 non-financial enterprises function on the territory of the Municipality of Gabrovo, in other words it is 188 companies more as compared to 2006. Increase in the number of enterprises in all economic sectors has been registered. In particular, the number of non-financial enterprises has been increasing in the following branches: ‘Process industry’, ‘Construction’, ‘Trade and repair’ and ‘Property and business services’.

Structurally, the number of micro-, small, medium and large enterprises is as follows:
• 2878 micro enterprises
• 277 small enterprises
• 64 medium enterprises
• 13 large enterprises

There’s a tendency towards increase in the number of micro companies at the expense of small and medium enterprises. The number of large companies with more than 250 employees has been retained.

According to the Gross output index, the amount of production has been growing up, for instance in 2007 it was equivalent to 696 117 thousand BGN or 123 653 thousand BGN more as compared to 2006 (about 18 % production growth in 2007). There has been an increase in all economic sectors of Gabrovo Municipality. The biggest growth is in the following fields: ‘Property and business services’ (33, 3 %), ‘Construction’ (26 %), ‘Trade and repair’ (22, 9 %), ‘Hotels and restaurants’ (20, 7 %) and ‘Processing industry’ (14,6 %). The above-mentioned data confirms that the tendency towards steady increase in the production within the municipality has been kept. It has grown more than 3 times as compared to 2000.

The net revenues from sales in 2007 were to the amount of 1 098 596 thousand BGN or 195 257 thousand BGN more as compared to 2006 and 57 % more as compared to 2003. The biggest increase, as compared to 2006, is registered in the following fields: ‘Property and business services’ (37, 2 %), ‘Construction’ (36, 73 %), ‘Trade and repair’ (25, 3 %), and ‘Processing industry’ (16, 6 %). As a whole, the permanent tendency towards increase in the net revenues from sales has been retained and this is the proof of stability and growth in the local economy.

The tendency to inrease the expenditures for acquisition of tangible fixed assets during the period 2003 – 2007 has been retained. The investments in tangible fixed assets in 2007 ran up to 356 369 BGN, i.e. growth of 19, 07 % as compared to 2006. The greatest contribution to the increase of the amount of investments in tangible fixed assets is of the following industrial fields: ‘Transport and communications’ (39, 3 %), ‘Hotels and restaurants’ (35 %), ‘Trade and repair’ (29, 6 %), ‘Construction’ (27, 3%), ‘Property and business services’ (21, 3 %) and ‘Processing industry’ (13, 1 %). This is one more proof that the companies on the territory of Gabrovo Municipality develop steadily and invest in new technologies with the purpose of holding their ground on the market under the new conditions after the membership of Republic of Bulgaria in the European Union.

The total number of the employed in Gabrovo Municipality in 2007 amounted to 24 633 people or 504 more as compared to 2006. The number of the employed in the field of construction and tourism business has been going up but the number of employees in the processing industry has been going down.

Note: This analysis refers to the period prior to the global economic crisis. Therefore, despite the relative present stability of the local economy, this analysis could not be considered indicative as regards the dynamic changes having occurred in the development trends after the end of 2008.