Economy of Bulgaria

As Bulgaria grapples with a deepening political crisis and the looming specter of early elections, the economic ramifications are starkly evident. A recent economic forecast from the Italian financial group "Unicredit" sheds light on the dire consequences, estimating that the turmoil will cost the Bulgarian economy a staggering BGN 1 billion.

Bulgaria's aspirations to join the Eurozone in 2025 face significant hurdles as economic slowdown and political uncertainty pose formidable challenges, according to a recent analysis by the World Bank.

Bulgaria is on the brink of shedding its label as the "poorest" country in the European Union, with recent data revealing a promising trajectory towards economic convergence. Amidst discussions about Bulgaria's economic status within the EU, a closer examination of key indicators suggests a notable shift in the country's positioning.

Bulgaria's defense expenditure for the year 2023 amounted to $1.9 billion (3.47 billion BGN), representing 1.87 percent of its Gross Domestic Product (GDP), as detailed in the annual report released by NATO Secretary General Jens Stoltenberg. This disclosure occurred during a press conference held at NATO headquarters in Brussels earlier today.

The National Statistical Institute (NSI) has released preliminary data revealing that Bulgaria's gross domestic product (GDP) experienced a modest growth of 1.8% in real terms in 2023. This expansion marks a slowdown compared to the 3.9% growth recorded in the previous year, according to aggregated quarterly data.

Recent data from Eurostat reveals a slight uptick in retail sales across the Eurozone and the European Union in January 2024, marking a recovery from the previous month's decline.

According to the express estimates of the National Statistical Institute, during the fourth quarter of 2023, the gross domestic product (GDP) increased by 1.6% compared to the same period of the previous year and by 0.5% compared to the third quarter of 2023, based on seasonally adjusted data.

According to a report, released by Eurostat, Bulgaria's unemployment rate in December 2023 remained static at 4.3%, a marginal increase from the 4% reported in December 2022. Approximately 130,000 people were registered as unemployed during the period.

In the third quarter of 2023, the Bulgarian economy experienced a 0.4% growth compared to the preceding quarter, maintaining a similar growth pattern seen earlier. Announced by the National Statistical Institute (NSI), the economic expansion, measuring 1.8% annually, remains consistent with the previously estimated 1.7%, showing a slight decline from the 2.0% growth in the second quarter.

The Organisation for Economic Co-operation and Development (OECD) has revised Bulgaria's economic growth forecasts in its latest World Economic Outlook report, signaling a 1.7% growth rate for 2023, slowing due to external factors, with a projected acceleration to 2.8% in 2024.