European Commission forecasts slowdown in Bulgarian GDP growth in 2026

In 2026, Bulgaria will face a rise in inflation, due to higher energy prices and rising food prices, the European Commission's spring economic forecast shows. Annual consumer price inflation is expected to be 4.2%. The budget deficit will be 4.1% of GDP, due to rising spending on social payments, public sector wages, defence and internal security, as well as investment grants for the Bulgarian Energy Holding. Economic growth is expected to slow down, with GDP growing by 2.5% in 2026 and 2.2% in 2027. The main reason is weaker private consumption growth, driven by lower wages and slowing employment.

Editor: Ivo Ivanov