Transcript Ivaylo GRANCHAROV

Ministry of Economy & Energy
Enterprise Policy Directorate
presents
Introduction to
OPERATIONAL PROGRAMME
DEVELOPMENT OF THE COMPETITIVENESS OF THE
BULGARIAN ECONOMY
2007-2013
„Operational Programme Enterprise and Innovations 2007 – 2013:
The Gate of Czech Enterprises to Prosperity on Domestic and Foreign Markets“
27 April 2006 in Senate House – Valdštejnský palác
ALL-ROUND DEVELOPMENT
GDP EURO mio
Real Growth Rate
25000
20000
15000
10000
4.0%
2.3%
GROSS DOMESTIC PRODUCT
5.4%
4.5%
4.9%
4.1%
5.5%
5.7%
140%
Real Growth Rate
for 2005
-5.6%
5000
0
Since 1997 GDP
increased by more than
5.5%
1997
1999
2001
2003
2005
ALL-ROUND DEVELOPMENT
Denmark
Austria
18.8
15.6
66.1
67.8
POPULATION
Age
Structure
%
15.1
Closest EU member
countries to Bulgaria in
terms of population 2005
Population
16.6
0-14
15-64
64+
Slovakia
17.1
71
11.9
5,432,000
8,185,000
Bulgaria 14.1
0%
68.7
20%
40%
17.2
60%
80%
5,431,000
100%
7,719,000
Since 1997 Bulgarian population
decreased by 565,000 people
ALL-ROUND DEVELOPMENT
GDP per capita in PPS (EU-25 =100)
2006 forecast & change towards EU-25 since 1997
33%
56%
100%
122%
124%
Since 1997 Bulgarian GDP PPS is
steadily increasing but still very slowly
ALL-ROUND DEVELOPMENT
20
18
Coming from
1058.4% in 1997
INFLATION
Rates 1997 - 2005
16
14
12
Price levels of final
consumption in
2005 & change
towards EU-25
since 1997
10
8
6
4
2
5.0%
2.8%
2.2%
2.1%
1.7%
0
1997 1998 1999 2000 2001 2002 2003 2004 2005
43%
55%
100% 104% 137%
Now the inflation is stable and relatively low – it has to
be decreased more
ALL-ROUND DEVELOPMENT
25
UNEMPLOYMENT
Rates 1997 - 2005
Overall change in
number of unemployed
people in % since 2001
20
15
10
5
16.4%
9.9%
8.7%
5.2%
4.8%
0
1997 1998 1999 2000 2001 2002 2003 2004 2005
Unemployment is decreasing fast –
more jobs to be created soon
VALUE ADDED STRUCTURE
ALL-ROUND DEVELOPMENT
Mining and quarrying
Value Added by Sectors in %
Manufacturing
Construction
1.4
6.9
Electricity, gas and water
supply
12.6
3.8
42.6
Wholesale and retail
trade;
Hotels and restaurants
23.4
2.4
6.9
Transport, storage and
communication
Real estate, renting and
business activities
Manufacturing has the greatest share
in Gross Value Added
NUMBER OF ENTERPRISES
Comparison:
Bulgaria = 100
1997
MANUFACTURING
2003
Number of
Enterprises
1997-2003
Number of
Enterprises
Change in
Number of
Enterprises
Bulgaria
100
100
+14%
Slovakia
8
25
+238%
Austria
105
104
+12%
Denmark
102
68
-24%
Similar shares of SMEs in the number of enterprises
TURNOVER
Comparison:
Bulgaria = € 1 M
MANUFACTURING
1997
2003
Turnover of
Enterprises
1997-2003
Turnover of
Enterprises
Change in
Turnover of
Enterprises
Bulgaria
1.0
1.0
+56%
Slovakia
1.7
1.8
+94%
12.4
11.1
+27%
8.4
7.5
+23%
Austria
Denmark
Bulgarian enterprises are catching up but the gaps are still big
VALUE ADDED to FACTOR COST
Comparison:
Bulgaria = € 1 M
1997
MANUFACTURING
2003
VA of
Enterprises
1997-2003
VA of
Enterprises
Change in VA of
Enterprises
Bulgaria
1.0
1.0
+42%
Slovakia
1.7
1.9
+76%
Austria
20.2
17.8
+25%
Denmark
14.4
11.9
+18%
The gap in value added is even larger but it’s also decreasing
EMPLOYMENT & PRODUCTIVITY
Comparison:
Bulgaria = € 1 K
2003
1997
Employees in
Enterprises
Bulgaria = 1000
MANUFACTURING
1997-2003
2003
GVA per
person
employed
GVA per
person
employed
Change in
GVA/ person
employed
Bulgaria
1000
1.0e
1.0
+63%
Slovakia
681
2.4e
3.2
+142%
Austria
997
25.5e
20.5
+25%
Denmark
712
22.9e
19.2
+34%
Apparent Labour Productivity – it seems with more workers we
produce lesser value added
EMPLOYMENT & PRODUCTIVITY
Comparison:
Bulgaria = € 1 K
2003
1997
Employees in
Enterprises
Bulgaria = 1000
MANUFACTURING
1997-2003
2003
GVA per unit
personnel
cost
GVA per unit
personnel
cost
GVA per unit
personnel
cost
Bulgaria
1000
1.0e
1.0
+22%
Slovakia
681
1.1e
1.1
+30%
Austria
997
1.1e
1.0
+0.1%
Denmark
712
1.1e
0.9
-0.1%
Simple Wage Adjusted Labour Productivity – actually Bulgarian
enterprises produce at the same rate of productivity but obviously
products with lower value added and with lower unit labour cost
WAGES & SALARIES
Comparison:
MANUFACTURING
1997
2003
1997-2003
Average Wage
Average Wage
Bulgaria
1.0
1.0
+29%
Slovakia
1.8
1.9
+46%
Austria
22.3
20.5
+19%
Denmark
19.2
17.4
+17%
Bulgaria = € 1 K
Change in
Average Wage
Very large gaps in terms of wages and salaries
The gap between wage rates and value added rates is larger in
Bulgaria than in the other countries
INVESTMENT in TANGIBLE GOODS
MANUFACTURING
1997
2003
Investments in
Tangible Goods
Investments in
Tangible Goods
Bulgaria
1.0
1.0
+308%
Slovakia
5.6
1.3
-0%
Austria
17.6
5.5
+27%
Denmark
14.3
3.5
-0%
Comparison:
Bulgaria = € 1 M
1997-2003
Change in
Investments
The investments are growing rapidly
CERTIFICATES
ISO 9000:2001
2001
2004
Number of ISO
9001:2000
Number of ISO
9001:2000
Bulgaria
38
1685
+1647
Slovakia
144
2008
+1864
Austria
700
3839
+3139
36
1050
+1014
Comparison:
Denmark
2001-2004
Change in
number of ISO
9001:2000
The enterprises seem to take care about quality management
CERTIFICATES
ISO 14001
2001
2004
Number of ISO
14001
Number of ISO
14001
Bulgaria
6
26
+20
Slovakia
73
184
+111
Austria
223
549
+326
Denmark
620
711
+91
Comparison:
2001-2004
Change in
number of ISO
14001
Not the same situation in the field of environmental care
OPERATIONAL PROGRAMME
DEVELOPMENT OF THE
COMPETITIVENESS OF
THE BULGARIAN
ECONOMY 2007-2013
Problems to solve ensuing from the above
INNOVATIONS
TECHNOLOGY, EQUIPMENT & PRODUCTIVITY
ENERGY EFFICIENCY and ENVIRONMENTAL CARE
EASIER ACCESS TO FINANCE
INVESTMENTS
OPERATIONAL PROGRAMME
DEVELOPMENT OF THE
COMPETITIVENESS OF
THE BULGARIAN
ECONOMY 2007-2013
The TOP 3
things that
pop-up into a
foreigner’s
mind when
he/she hears
Take a look also at the
ANNUAL REPORT
on the Condition & Development of
SMEs
in BULGARIA
SMEs ALPHABET
www.mee.government.bg
Thank you for your attention!
Ivaylo GRANCHAROV, Chief Expert, e-mail: [email protected] , Ministry of Economy and Energy; © 2006