site.btaSoftware Sector, ICT Industry Have Potential to Be Leaders in Bulgaria's Economy Within Five Years

The ICT (information and communication technology) industry and the software sector in Bulgaria will be in the top three industries in the country within five years, with the potential to become leaders, Dobroslav Dimitrov, chairman of the Bulgarian Association of Software Companies (BASSCOM), and caretaker Economy Minister Nikola Stoyanov, agreed on this forecast during a discussion on the occasion of the presentation of data from the annual report on the state of the software sector in Bulgaria - BASSCOM Barometer 2022.

In 2021, the industry grew by 27% compared to 2020, and in 2022, according to preliminary data, the expected growth will be over 30%, Dimitrov said, pointing out that this is a "colossally large number" compared to the average for Bulgaria's economy. 

Stoyanov noted that Bulgaria has a lot to be proud of, although there are not as many companies in the sector as likely. He acknowledged that there is no other sector like the ICT where there are so many companies represented at the global level. Last year, the sector broke a 7-year record for investment - nearly BGN 500 million in the sector, the minister said.

He indicated the need to change Bulgaria's national policy towards taking care of the companies already in the country, and not so much towards actively attracting new investors, because in his words, "saturating the market too quickly leads to reaching the development ceiling too quickly, which leads to companies 'eating themselves'."

Stoyanov cited figures for the ICT sector, which show that the country reached over 25% gross value added growth in the economy in 2021. The sector is in the top three fastest growing industries and its revenues have increased by over 20%. It employs over 70,000 people and underwent employment growth of 57% over the last ten years. According to Stoyanov, there would be over 100,000 people employed in the sector if growth keep up the pace in the next five years.