By Caitlyn Buchanan, 13.09.2019
Bulgaria recorded economic growth of 0.8% in the second quarter of 2019, as reported by the National Statistical Institute (NSI) earlier this month. This growth paired with the implementation of 5G network comes at an opportune time for business in Bulgaria.
Gross domestic product (GDP) in Bulgaria from April-June was €14.88 billion (29.11 billion leva). This is a 3.5% increase from the same period of 2018. Annual growth in 2018 was 3.1% and according to the EU Commission’s summer estimate, 3.3% annual growth is estimated for Bulgaria in 2019.
Implementation of 5G in Bulgaria
The fifth generation of global mobile networks, 5G has started to be introduced across Europe and plans to roll it out across Bulgaria have already begun. Bulgaria aims to test and then launch the 5G network next year.
5G’s enhanced capacity is designed to better cope with the spread of smartphone and tablet devices across the globe. It is said to offer super-fast mobile connectivity with greater reliability than the previous, 4G.
Tech company, A1 Bulgarian (or Mobiltel) are responsible for rolling out the 5G network in Bulgaria. The necessary equipment has been supplied by Nokia at the first base station launched the in the capital of Sofia, at the National Palace of Culture. The first of 5G connectivity trials have begun if the trials go as planned, A1 Bulgaria plans to unveil commercial operations over its 5G network sometime next year.
Mobile Gaming in Bulgaria
Revenue generated by mobile gaming in Bulgaria is expected to reach €4.5 million this year. The region’s iGaming market is fast-growing and forecasted to expand by more than 20% year on year in 2019.
The implementation of 5G in Bulgaria is expected to hugely benefit the mobile gaming industry bringing improved connectivity and accessibility of mobile apps encourage more people to participate in all forms of online gaming.
The 5G technology is very likely to have a positive impact on the video-on-demand industry in Bulgaria, streaming platforms such as Netflix and Vivacom have been rapidly expanding their services to Bulgarian consumers. In 2019, the video-on-demand sector is expected to generate €9 million in revenue, with forecasts anticipating growth to hit €10 million by 2023.
Business in Bulgaria
The Regulation Commission in Bulgaria has warmly welcomed the 5G connectively to Bulgarian customers and is pleased to see more foreign investment and increased competition in the market. The change will only aid Bulgarian businesses in maintaining their competitiveness within the European Union and continue to encourage more outside investment in Bulgarian innovation going forward.
Bulgaria is a growing economy with one of the lowest corporation taxes in the EU, only 10%. The region is becoming increasingly popular with foreign investors looking to incorporate a company in the EU. Euro Company Formations have a limited number of Bulgarian readymade companies that are VAT Registered. Our readymade package also includes our exclusive bank account introduction service. Please contact the Euro Company Formations team on +353 (0) 16461627 or complete the Contact Us form to explore your options today.Contact US