OECD lowers growth forecast for Bulgaria and global economy

The Organisation for Economic Co-operation and Development (OECD) expects the growth of the Bulgarian economy to slow to 2.5 percent in 2026 and 2.3 percent in 2027 amid higher inflation, rising energy prices and weaker consumption. According to the organization’s latest Economic Outlook report, higher energy prices due to the conflict in the Middle East will reduce incomes and put pressure on domestic demand in the country.

The organization warns that higher energy prices create a risk that inflation will remain persistently high and reach 4.3 percent in 2026, before slowing to 3.4 percent in 2027. OECD warns that the budget deficit has exceeded 3 percent of GDP due to the growth of spending on social and health services, the increase in public sector wages and higher investment spending, BTA reports.

Editor: Ivo Ivanov