ABSTRACT
Despite the relatively small size of the country, notable regional disparities are evident in Bulgaria. These can be seen in a range of areas including the distribution of resources and production facilities, living conditions and the share of individual regions in the generation of national economic growth. The Introduction of the territorial administrative reform and the consoiidation of local self-government is a new element in the implementation of the process of transition. The unfavourable processes in the national economy have had a corresponding impact on employment rates. Rising unemployment is a result of the current economic crisis. Initially, the root cause was a fall in production activities and the closure of entire production lines, companies etc. rather than structural changes in the manufacturing sector or technological innovation. The period of economic transition in Bulgaria has been characterised by falling Gross Domestic Product (GDP) and a negative rate of economic growth.
