Bulgaria

map Bulgaria
Bulgaria’s economic growth in Q1 was 3.1%, driven by strong domestic demand. In particular, gross fixed capital formation grew significantly – by 18.7% on an annual basis-thanks to the absorption of EU recovery and resilience funds. As a result of higher wages and pensions, real disposable income has increased, thereby supporting robust household consumption. That should be further boosted by the planned increase in the minimum pension of 7.8% from 1 July 2026.The above factors have led us to revise our GDP growth forecast for 2026 upwards, to 2.5% – 0.5pp higher than before. However, declining net exports continue to weigh on overall growth performance.
        FORECAST*
Main Economic Indicators202320242025202620272028
Population, 1000 persons644764416420...
GDP, real change in %1.73.43.12.52.62.8
GDP per capita (EUR at PPP)242502632028330...
Gross industrial production, real change in %-8.3-3.1-7.7...
Unemployment rate - LFS, in %, average4.34.23.53.63.73.7
Average gross monthly wages, EUR104311891331...
Consumer prices, % p.a.8.62.63.55.23.53.0
Fiscal balance in % of GDP-2.0-3.1-3.5-3.0-3.0-3.0
Public debt in % of GDP22.923.829.9...
Current account in % of GDP-1.2-0.5-5.7-4.9-3.6-2.7
FDI inflow, EUR m479228194264...
Gross external debt in % of GDP48.448.350.5...


Basic data are continuously updated.

* Forecasts are changed beginning of January, April, July and November.
See Press Conferences.

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Monthly Report No. 7-8/2026

Vasily Astrov, Alexandra Bykova, Selena Duraković, Meryem Gökten, Richard Grieveson, Ioannis Gutzianas, Gabor Hunya, Branimir Jovanović, Biljana Jovanovikj, Niko Korpar, Dzmitry Kruk, Isilda Mara, Michał Możdżeń, Emilia Penkova-Pearson, Olga Pindyuk, Sandor Richter, Marko Sošić, Bernd Christoph Ströhm and Marina Tverdostup
wiiw Monthly Report No. 7-8, July-August 2026
52 pages including 5 Tables

Details

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Executive summary

Olga Pindyuk
in: The Crisis is Over, but its Scarring Effects are Hindering Recovery
wiiw Forecast Report No. Spring 2024, April 2024 , pp. I-VII
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