Sofia City Province
Sofia City Province operates as Bulgaria's keystone: nearly half national output, 4.5% GDP from IT, first unicorn (Payhawk) in 2021.
Sofia City Province functions as Bulgaria's keystone economy—the capital region produces nearly half the country's total output alongside Pernik and Botevgrad. Trade and information technology dominate, drawing the highest foreign investment, employment, and wages. The IT sector alone accounts for over 4.5% of GDP, growing 12% in 2023 with 7.6% growth in high-tech services continuing through 2024.
The technology ecosystem has matured beyond outsourcing. Payhawk became Bulgaria's first unicorn in 2021, signaling startup viability. The Petascale Supercomputer at Sofia Tech Park—part of the European High-Performance Computing Joint Undertaking—anchors deep tech infrastructure. Bulgarian universities produce approximately 6,500 graduates annually in mathematics, engineering, and computer science. The digital economy's share of GDP is projected to reach 16% by 2025. AI, space technology, and fintech attract government backing and investor attention.
Yet concentration creates vulnerability. Sofia's dominance means the rest of Bulgaria underperforms relative to the capital's trajectory. GDP growth projections show 2.4% in 2024 rising to 3% in 2025-26—modest for a country still catching up to Western European levels. The €107 billion economy (2024 nominal) has grown 538% since 2000, but high-value activity clusters in Sofia while provincial economies stagnate. The city demonstrates both Bulgaria's competitive advantages (cost, talent, location, EU membership) and its structural challenge: how to spread prosperity beyond the capital region that generates it.