Bulgaria holds the 58th position in the IMD-Switzerland World Competitiveness Ranking 2024

According to the 2024 World Competitiveness Yearbook of the Institute for Management Development (IMD), Switzerland (Institute for Management Development – IMD), published on 18 June this year, in 2024, Bulgaria took the 58^th place out of 67 countries altogether and has recorded a lack of progress since 2021 up till now. This result reflects both the positive aspects and the challenges which this country is facing. In 2020, our country ranked 48^th, but that was followed by significant fluctuations, reflecting different economic and political factors.

The top three countries in the IMD's 2024 Annual Ranking of World Competitiveness are Singapore, Switzerland and Denmark. The main factors of the competitiveness profile in Bulgaria include: Economic performance (efficiency), Government efficiency, Business efficiency (environment) and Infrastructure. Compared to the previous year 2023, the country records the biggest slump in terms of its infrastructural condition (from the 54^th to the 59^th place) and its business environment (from the 62^nd to the 65^th place). Nevertheless, for the 3^rd consecutive year, Bulgaria has seen growth in its economic efficiency (from the 48^th to the 45^th place), mainly thanks to its improved macroeconomic indicators such as the rising real GDP per capita.

As expected, Bulgaria's economic performance is distinguished by significant strengths and weaknesses. Our country takes the 1^st place in terms of the real GDP growth per capita which is an interesting achievement. In addition, office rental costs and petrol prices are comparatively low and Bulgaria takes the 9^th and 15^th place, respectively, for these indicators which makes it an attractive destination for doing business. The export of commodities is also a strength, putting Bulgaria in the 17^th place. Nevertheless, this country is facing challenges such as economic sustainability and long-term growth in employment where it takes the 63^rd and 55^th place, respectively.

The index, measuring "the Bulgarian Government efficiency", shows both strengths and weaknesses. Corporate tax puts Bulgaria in the 3rd place and the stability of the exchange rate ranks it 7^th, demonstrating a stable and predictable fiscal environment. Nevertheless, political instability remains the main problem, with the country taking the 66th place in this indicator. Laws on competition and public procurement also need improvement, where Bulgaria ranks 64^th and 63^rd, respectively.

Bulgaria performs well in the "business efficiency" index in areas such as "fear of failure among entrepreneurs" (5^th place) and "the remuneration of the Management " (6^th place). These factors are critical for creating a dynamic business environment. Nevertheless, our country has serious problems in the employees’ training and the financial skills where it takes the last 67^th place, which is really important for the sustainable business growth and innovation.

The index of Bulgaria's Infrastructure has its strengths such as the export of ICT services, where the country takes the 8^th place, and such as the pupil/teacher ratio in primary education, which puts it in the 9^th place. These strengths are fundamental for the future economic development. On the other hand, population growth and the available resources of qualified engineers remain significant obstacles and Bulgaria occupies the last 67^th position in both indicators.

In conclusion, although Bulgaria faces significant challenges in improving its competitiveness, the country has considerable strengths and capacities. With purposeful reforms and strategic investments, Bulgaria can improve its economic performance and take a more competitive position on the world stage.

Center for the Study of Democracy
https://csd.eu/bg/events/event/mezhdunarodnata-konkurentosposobnost-na-blgarija-2024-g/

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BCCI directly contributes to the preparation of this Ranking, by selecting Bulgarian companies and organisations to be included in it for higher representativeness, and coordinates the process of making the surveys in our country.

For more detailed information, please refer to:

► The Ranking by country (67 countries in total) – here

► The Ranking for Bulgaria – HERE