Reducing regional disparities for inclusive growth in Bulgaria

Abstract

Regions with large cities are driving growth in Bulgaria, while many rural regions suffer from depopulation and rapid ageing. Improving living standards across all regions will require better coverage and access to public services, notably in health and long-term care. Policy action to integrate the Roma, around one-tenth of the population most of which live in poverty and socially excluded neighbourhoods, would help to tackle labour shortages in the medium term in addition to improving well-being. Investments in infrastructure and housing reform are needed to boost mobility and strengthen linkages to national and international supply chains. This would also benefit agriculture that accounts for almost a third of employment in lagging regions and has undergone a rapid restructuring, polarising and distorting the sector towards low-value added products. While the coronavirus outbreak has hit the tourism industry hard, the diverse Bulgarian landscape offers opportunities for developing profitable experience-based tourism, when international travel resumes.

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