ECONOMICAL CHARACTERISTICS OF PLOVDIV REGION     Location and population   Plovdiv region is located in the central part of South Bulgaria covering 5972.9 sq.km, which is about 5.4% of the whole country. The region comprises 215 towns and villages: there are 17 towns composing the largest part of the region and the city of Plovdiv is the second most populated city in the country. The agricultural areas comprise 57.8% of the region and the forest areas – 31.2%. The climate is transitionally continental and the upland areas have a mountainous climate. The numerous thermo-mineral springs are a significant part of Bulgaria’s natural resources, while the mineral resources are more limited in variety.   At the end of 2002, the population of the region is 709 900, or 9.1% of the total population of the country. The administrative region of Plovdiv is the second region in Bulgaria in terms of population number. One square kilometer is inhabited by approximately 118.8 persons. The level of density in the region is about 70% higher than the average level of the country. 72.6 % of the inhabitants live in the towns and 27.4% live in the villages.   Economy   The regional Gross Domestic Product (GDP) is 7.9 % of the total country’s, which is, in fact, one of the highest for Bulgaria. The sector of services constitutes more than half of the value added amount of the region. The agricultural sector constitutes a small portion of 7.8 %. The distinguishing characteristics of the regional economy are the varieties of production. The main production sectors include food, beverages and tobacco production, metallurgy and production of metal items, textile and garment production, paper and cardboard production, machine building, chemical substances and plastic materials production. The main industrial centers of the region are Plovdiv, Assenovgrad, Karlovo, Stamboliiski, Purvomai, Sopot, and Luki. The agricultural sector includes the development of increased productions of vegetables, tree-planting, vineyards, and wheat. According to the preliminary data, the net revenue of all economical branches for 2004 are figuring out at 7 billiards and 806 million leva /BGN/, or 55% more than the rate for 2000. The profitability level of the economy is considerably exceeded and the profit rate of 100 BGN incomes is changed from 1.15 BGN for 2001 to 3.83 BGN for 2004, so the total revenue is increased 5 times.   Investments   The expenses for acquiring fixed tangible assets (FTA) tend to increase and private investors appear to be the main catalysts. Investment activity is dominant in the industrial sector. In 2004 according to the preliminary data the expenses for acquiring FTA amounted to 699.3 million leva (BGN), which is about two times above the rate for 2000. 55% of the total amount of investments is directed to the industry, the electricity supply and construction. Yet, there is a lack of investments in agriculture – only 3.5% for 2004. In 2004, the greatest number of investments was in the production of food, textile and garment. Machines and equipment expenses prevail in the technological structure of investments – 50%, followed by the expenses for buildings, building materials and constructions, which constitute 39%. At the end of 2004, 371 million USD were invested as foreign direct investments, including short-term liabilities of the investors, in the regional economy. The first place is taken by the German investors, followed by the investors from Italy and Great Britain.   Labour resources   A vital aspect of the regional development is the available human potential in terms of vocational training. The region is an important academic center in Bulgaria because of its numerous colleges and universities. The significant scientific potential of the city is another regional characteristic. The “demographic replacement” factor is influencing the population of laborers, i.e. the rate of the active people is still higher than the number of retirees group. The share of the working population in the last four or five years is keeping its rate of approximately 60%. After 2001 the rate of employment, which is figuring out at 233 900, is consistently increasing and it reached the number of 272 600 in 2004. The unemployed were approximately 44 000 at the end of 2002 and that number decreased to 22 300 at the end of 2004. The unemployment ratio for the region at the end of 2004 is approximately 7.6%, which is 4.4 points below the average rate of the country.     The main conclusions regarding Plovdiv region development for the last 4-5 years are as follows:   There is a stable trend to a positively changing demographic picture of the region. The negative natural growth in population is constantly decreasing. In 2004 it is 25% lower than the average rate for the country as compared to the rate of 15% in 2002. If the growth in population is positive and stable, the regional economy will meet no difficulties in the next 5-10 years regarding labour resources. There is a tendency to a positively changing economical characteristic of the region. The Gross Domestic Product is increased with 53.5% as compared to the percentage in 2000 and its relative share is 8%, while in 2000 it’s 7.5%. The economical activity of the population is increased from 45.4% in 2001 to 48.2% in 2004. The employment rate is raised with 6.8 points and the ratio of unemployment is decreased from 16.8% to 7.6%, which is 4.4 points lower than the average unemployment rate for the country. The region takes the third position in terms of its low unemployment rate, following the towns of Blagoevgrad and Kardjali. The investment activity rates are also increasing. The costs for acquiring FTAs have raised with more than 2 times compared to 2000, while the acquired tangible assets have shown a rise of 8.8 times. The profitability of economy is positively changing in the recent years. The region of Plovdiv has changed its branch orientation and is marking an increasing economical effect. The revenue rate is raised with more than 5 times for the period of 2000 – 2004, while the prime cost of the commercial turnover is decreased with 2.8%.     In this edition we have presented companies, which have shown the best financial results and have influenced the economical growth of the Plovdiv region. The two main criteria to determine the ranking of the companies according to their net revenues are the following: Business activity in 2003 and 2004 Company’s positive numbers of capital and financial results for 2004   There is a list of 50 leading companies ranked according to the maximum amount of revenue, while observing the obligatory condition: the amount of their short-term takings and solvency shall cover the amount of their short-term liabilities, i.e. liquid assets are required. There is another list of the first 50 companies ranked according to their maximum income rate comprising all their business activities.   The statistical data used for the regional characterization are from the official records of the National Statistic Institute and are evaluated by the Plovdiv Chamber of Commerce and Industry. The financial data of the companies are taken from their annual records and have been used accurately by the authors.     The most important priorities for the economic development of the municipality:   Increasing the competitiveness of the companies in the field of industry and services; Development of the research activities, technological development and innovation in the municipality; Support of the approved companies; Support for the development of the business infrastructure; Formation of rapid economic growth zone; Formation of regional clusters and networks (at least three clusters – food industry, textile and garments industry and biotechnologies); Revival of the unused industrial zones; Formation of public-private partnership and initiatives for economic development; Improvement of the access and the development of the information and communication technologies in the field of public services and the services for SMEs; Increasing the quality of the labour force; Achievement of attractive and prosper tourism; Development of the cultural, business and sport tourism; Development and modernization of the local infrastructure; Improvement of life quality in the Plovdiv municipality; Insurance of public order and security.   Circumstances stimulating the economic development of Plovdiv   Well-developed international and domestic transport connections to the European road and railway systems, highway, airport. At the moment the transport connection with Greece is extended. Build up image of an industrial center with capacity to develop high tech industries; Highly qualified human resources in almost all sectors of the economy; Commercial, financial and services center of the region with opportunities for the development in the secondary and tertiary sectors; Unique cultural and historical center with potential for development of the tourism in the whole region; Concentration of educational institutions of all degrees and research institutes with potential for Know-How in the field of economy; Developed infrastructure for supply of energy and water, communication and transport network. The infrastructure is going to be extended according to the needs.