Portrait of the Regions - BULGARIA - NORTH-WEST REGION - Economy

Portrait of the Regions - BULGARIA - NORTH-WEST REGION - Economy

NORTH-WEST REGION - Economy

Economic development lags behind

This is the weakest region in terms of economic strength, contributing only 6.2% to the country's Gross Value Added (in 2001). The secondary sector contributes 30.9% to the regional GVA, which is the highest contribution of this sector amongst the six Bulgarian regions. On the contrary the tertiary sector offers the smallest contribution to regional GVA amongst the regions (45.5%).

The primary sector contributes just under 9% to the total production of the sector in the country. Agricultural development is favoured by the moderate climate and the fertile soil, along with the processing capacity and the market for its final production. Arable land covers 39.2% of the region's area (in 2002). The main products cultivated are cereals and wheat. The region is also the main producer of melons and watermelons, outpaced only by the North-Central region.

The main industries are in the energy and chemical sectors. The leader in the energy sector is the nuclear power plant "Kozlodui", generating 43% of the total electricity in the country. The share of the energy sector in the regional economy will most probably decline in the future, due to the forthcoming restructuring of the power plant. The major chemical enterprises are Himko, Kom and Vidahim. The food industry contributes 10% to total production in the country. The main products in this sector are can and meat products in Montana and beer in Lom and Mezdra. The machine-building sector includes the production of electric cars in Lom, cast-iron molding in Vratsa and the manufacturing of metal ropes which is unique to Roman.

The retail network is not well developed, due to the small number of citizens. Only 7% of shops are situated here and only 6% of the retail sales turnover in the country occurs here.

The natural and man-made features of the region are not used in an optimal way. The most attractive natural phenomena are the Belogradchik rocks and the Ledenika and Magura caves. The healthy mineral springs in the region should support the growth of the main tourist centre at Varshets. The various artificial lakes and the Danube river are also important for tourist development.

In general, the economic crisis in the country had a negative impact on the region's development. Several large enterprises were shut down in the period of transition to a market economy. Many others had to cut back production, because the market for it disappeared and also due to the slow privatisation process.

Poor transport infrastructure

The development of the transport infrastructure is closely related to the region's border location. The project for the second bridge over the Danube river will compensate for its distant position from the main Bulgarian transport axes. However, various factors hinder the optimal use of the region's favourable location.

All types of transport are developed in the region, the main one being road transport. Total road length is 1 801 km and the road density is 175.1 km per 1 000 km2 (in 2002). A major route is the Vidin-Montana-Vratsa-Sofia road, which forms part of the 4th European transport corridor. There are no highways in the region. The road connections with south Bulgaria and the capital Sofia are hampered by the relief, and are chanelled mainly through the Petrohan pass and the Iskar gorge.

In 2001, 119 100 private cars were estimated to have been registered in the region.

Rail transport has only a complementary function, the length of the railways accounting for 9% of the country's total railway length.

While road density is close to the national average, within the region it is highest in Vidin. However, its structure is poor, since the majority of the roads are poorly surfaced. The total length of 1st class roads is only 5% of the national total.

Other than the Danube River, which serves all the region's main ports, there are no navigable waterways. The terminals at Vidin and Oriahovo connect Bulgaria to the rail and road network of Romania, and then to Central Europe, the Ukraine, Moldova and Russia. Goods reach Western Europe via the Danube river and the Rhine-Maine canal. The biggest port is situated in the town of Lom, its main activity being the supply of raw materials to the metallurgical enterprise "Kremikovtsi".

Although there is an airport in the region of Vidin, it is not used at present.

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This text has not been officially validated by the Bulgarian statistical office.