Varna - Economy

Economy

The economy is service-based, with 61% of net revenue generated in trade and tourism, 16% in manufacturing, 14% in transportation and communications, and 6% in construction. Financial services, particularly banking, insurance, investment management, and real-estate finance are booming. As of December 2008, the fallout of the global financial crisis has not yet been hard. The city is the easternmost destination of Pan-European transport corridor 8 and is connected to corridors 7 and 9 via Rousse. Major industries traditionally include transportation (Navibulgar, Port of Varna, Varna International Airport), distribution (Logistics Park Varna ), shipbuilding (see also Oceanic-Creations), ship repair, and other marine industries.

In June 2007, Eni and Gazprom disclosed the South Stream project whereby a 900 km (559 mi)-long offshore natural gas pipeline from Russia's Dzhubga with annual capacity of 63 billion cubic meters is planned to come ashore at Varna, possibly near the Galata offshore gas field, en route to Italy and Austria.

With the nearby towns of Beloslav and Devnya, Varna forms the Varna-Devnya Industrial Complex, home to some of the largest chemical, thermal power, and manufacturing facilities in Bulgaria, including Varna Thermal Pover Plant and Sodi Devnya, the two largest cash privatization deals in the country's recent history. There are also notable facilities for radio navigation devices, household appliances, security systems, textiles, apparel, food and beverages, printing, and other industries. Some manufacturing veterans are giving way to post-industrial developments: an ECE shopping mall is taking the place of the former VAMO diesel engine works and the Varna Brewery is being replaced by a convention centre.

Tourism is of foremost importance with the suburban beachfront resorts of Golden Sands, Holiday Club Riviera, Sunny Day, Constantine and Helena, and others with a total capacity of over 60,000 beds (2005), attracting millions of visitors each year (4.74 million in 2006, 3.99 million of which international tourists ). The resorts received considerable internal and foreign investment in the late 1990s and early first decade of the 21st century, and are environmentally sound, being located reassuringly far from chemical and other smokestack industries. Varna is also Bulgaria's only international cruise destination (with over 30 cruises scheduled for 2007) and a major international convention and spa centre.

Real estate boomed in 2003–2008 with some of the highest prices in the nation, by fall 2007 surpassing Sofia (this still holds true in April 2009). Commercial real estate is developing major international office tower projects.

In retail, the city not only has the assortment of international big-box retailers now ubiquitous in larger Bulgarian cities, but boasts made-in-Varna national chains with locations spreading over the country such as retailer Piccadilly, restaurateur Happy, and pharmacy chain Sanita.

In 2008, there were three large shopping malls operating and another four projects in various stages of development, turning Varna into an attractive international shopping destination (Pfohe Mall, Central Plaza, Mall Varna, Grand Mall, Gallery Mall, Cherno More Park, and Varna Towers), plus a retail park under development outside town. The city has many of the finest eateries in the nation and abounds in ethnic food places.

Economically, Varna is among the best-performing and fastest-growing Bulgarian cities; unemployment, at 2.34% (2007), is over 3 times lower than the nation's rate; in 2007, median salary was the highest, on a par with Sofia and Burgas. Many Bulgarians regard Varna as a boom town; some, including from Sofia and Plovdiv, or returning from western countries, but mostly from Dobrich, Shumen, and the greater region, are relocating there.

In September 2004, FDi magazine (a Financial Times Business Ltd publication) proclaimed Varna South-eastern Europe City of the Future citing its strategic location, fast-growing economy, rich cultural heritage and higher education. In April 2007, rating agency Standard & Poor's announced that it had raised its long-term issue credit rating for Varna to BB+ from BB, declaring the city’s outlook "stable" and praising its "improved operating performance".

In December 2007 (and again in October 2008), Varna was voted "Best City in Bulgaria to Live In" by a national poll by Darik Radio, the 24 Chasa daily and the information portal darik.news.