IME expects Bulgaria to meet the price stability criterion for joining the euro area

Following a positive assessment of the medium-term fiscal program and official figures showing a deficit amounting to 3% of the GDP for 2024, the country is expected to receive a positive assessment in the upcoming convergence report, the experts note.

According to the IME’s analysis, the average annual inflation in Bulgaria remained at 2.7% in April, staying within the upper limit of the 2.8% criterion. Economists therefore expect a positive outcome in the June report and a euro adoption date of January 1, 2026. The eurozone’s financial rules and the need to maintain fiscal discipline may become a challenge for Bulgaria after adopting the common European currency, warned IME’s economist Petar Ganev.