Bulgaria Raises 2025 Growth Forecast

Bulgaria's economy is expected to grow by 3% in 2025, with average annual inflation rising to 3.6%, according to the Finance Ministry’s spring macroeconomic forecast. Both figures mark upward revisions from the previous autumn forecast, which had projected 2.8% GDP growth and 2.4% inflation for this year, CE Report quotes BTA

The Ministry attributes next year’s growth to increased public spending, while a slowdown to 2.5% in 2026 is expected due to reduced public investment. Growth is forecast to ease further to 2.4% in 2027 and 2.2% in 2028.

Inflation will be driven primarily by service and food prices in 2025, while falling global oil prices are expected to offset energy costs. Inflation is projected to gradually decrease to 2% by 2028.

Employment is forecast to grow modestly, with unemployment dipping slightly from 4.2% in 2024 to 4% by 2028.