Bulgaria
A Balkan country with spectacular mountains and the Black Sea coastline. Strategic geographic location
Total area: 111, 000 sq km (roughly the size of Virginia)
Population: 6.8 million
Government type: Parliamentary democracy
Administrative division: 28 provinces
Capital + other major cities: Sofia (1.2 million) + Plovdiv (321,000), Varna (311,000), Burgas (188,000), Ruse (123,000)
Currency: lev (BGL)
Languages: Bulgarian 76.8% (official), Turkish 8.2%, Roma 3.8%, other 0.7%, undeclared 10.5%
Ethnicity: Bulgarian 76.9%, Turkish 8%, Romani 4.4%, other 0.7% (including Russian, Armenian, and Vlach), other (unknown) 10% (2011 est.)
Religion: Eastern Orthodox 59.4%, Muslim 7.8.%, other (including Catholic, Protestant, Armenian Apostolic Orthodox, and Jewish) 1.7%, none 3.7%, undeclared 27.4%
President: (Mr.) Ruden RADEV (since 22 January 2017)
Prime Minister: Prime Minister Rosen Dimitrov ZHELYAZKOV (since January 16, 2025)
Date of EU accession: 1 January 2007
KEY FEATURES
- Great potential for tourism sector boosted by Schengen integration
- Strong food industry (dairy, wine, sunflower products)
- Biggest power exporter in the Balkan region
- A significant manufacturer of both conventional and electric bicycles
- Low labor costs, low corporate (10%) and income taxes (10%)
- The third least tax-burdened country in the EU
- A long fight against corruption still ahead
- Uses Cyrillic
- Member of the Schengen area since March 2024 (after 12 years of negotiations)
- Will adopt the euro from 2026
MACROECONOMIC OVERVIEW
Bulgaria’s GDP per capita in PPP reached 66% of the EU-27 average as of 2024, remaining the lowest among all Member States. However, this represents steady progress from 64% in 2023, showing continued convergence with other EU economies.
The country stands out in several international rankings. According to the World Bank’s Business Ready 2024 report, Bulgaria ranks 6th globally in regulatory framework quality. In the Heritage Foundation’s 2024 Economic Freedom Index, it holds 31st place, outperforming countries such as Belgium, Italy, Poland, France, and Hungary. Bulgaria also maintains one of the EU’s most competitive tax regimes, with flat 10% corporate and personal income tax rates, and it records one of the lowest public debt levels in the bloc—23.9% of GDP as of Q1 2025.
The country demonstrates solid economic fundamentals and growth potential. In 2024, the economy expanded by 2.8%, driven primarily by private consumption supported by rising wages and employment. Growth is projected to moderate to 2.6% in 2025 and 2.3% in 2026, with domestic demand remaining the primary driver. Still, structural challenges persist, particularly institutional weaknesses and governance issues, including corruption (Bulgaria ranked 76th globally in Transparency International’s 2024 Index), alongside adverse demographic trends.
Monetary stability has been another strength. Bulgaria’s currency has been firmly pegged to the euro since 1999, providing stability and eliminating exchange rate risk in trade. The country joined the European Exchange Rate Mechanism II (ERM II) in July 2020 as a prerequisite for euro adoption, which was approved in 2025, with Bulgaria entering the eurozone on January 1, 2026.
Selected economic indicators, Bulgaria, 2018 - 2024
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
| GDP |
|
|
|
|
|
|
|
|
| Real GDP growth |
%
|
2.7
|
4.0
|
-4.0
|
7.7
|
3.9
|
1.8
|
2.8
|
| GDP at current prices |
€ bn
|
56.01
|
60.68
|
61.33
|
71.08
|
85.8
|
93.9
|
103.7
|
| Foreign trade |
|
|
|
|
|
|
|
|
| Exports |
€ bn
|
36.94
|
39.3
|
34.5
|
43.6
|
59.3
|
57.1
|
57.88
|
| Imports |
€ bn
|
35.49
|
36.50
|
33.03
|
42.3
|
59.1
|
54.2
|
55.47
|
| Balance |
€ bn
|
1.45
|
2.07
|
0.9
|
1.3
|
0.2
|
2.9
|
2.4
|
| Prices |
|
|
|
|
|
|
|
|
| CPI – average inflation rate |
%
|
2.6
|
2.5
|
1.2
|
2.8
|
13.0
|
8.6
|
2.6
|
| PPI – industry – average |
%
|
4.1
|
3.8
|
-0.2 |
14.9
|
48.4
|
-12.5
|
-4.8
|
| Employment |
|
|
|
|
|
|
|
|
| Registered unemployment |
%
|
6.2
|
5.2
|
6.1
|
5.3
|
4.2
|
4.3
|
4.2
|
| Average monthly gross wage |
€
|
586
|
690
|
710
|
798
|
900
|
1,029
|
1,188
|
| Exchange rates* |
|
|
|
|
|
|
|
|
| USD/BGN average (BGN per USD) |
|
1.659
|
1.748
|
1.716
|
1.654
|
1.860
|
1.801
|
1.80
|
| Currency board fixed rate: EUR/BGN |
|
1.956
|
1.956 | 1.956 | 1.956 | 1.956 | 1.956 | 1.956 |
Source: Bulgarian National statistical institute, IMF, OECD, Eurostat, ECB, 2018-2024
* For the current exchange rate, please see www.xe.com
KEY SECTORS
The relative share of each economic sector in terms of GDP is approximately 62.6% in the services sector, 22.5% in industry, and 2.07% in agriculture, indicating that Bulgaria is more industry‑intensive and less service‑heavy than many EU economies. The country has a diverse economic base with established competencies in manufacturing, energy, IT, and services.
Food sector
Within Bulgaria’s manufacturing sector, food processing stands out as the largest segment, particularly known for its dairy products and wine, which are primarily exported to EU markets. The food processing industry accounts for over 20% of the country’s industrial output, making it a central pillar of the national economy. Bulgaria also holds a leading global position in the production of perfume-grade essential oils, notably lavender and rose oil.
Textile industry
Other prominent manufacturing sub-sectors include textiles, which employ around 100,000 people across both textile and clothing industries, and export about 90% of their production—primarily to EU markets. This close alignment with European supply chains underscores the sector’s export-driven nature. Within the clothing segment, Bulgaria has historically maintained a focus on high-value garment production—with approximately 75% of clothing exports classified as high-value products. Bulgaria is home to a range of textile and apparel firms serving premium and luxury European brands. However, the industry faces growing challenges, including rising labor costs, increased competition from low-cost countries, and shifting consumer preferences
Automotive Industry
Bulgaria’s automotive industry has become one of the most dynamic and strategically significant sectors of the national economy. It contributes over 11% to the country’s GDP and employs more than 75,000 people across a network of over 380 companies. A major strength of the industry is its focus on component manufacturing—an estimated 80% of the sensors used in European vehicles are produced in Bulgaria, and 9 out of 10 European cars include Bulgarian-made components.
Electronics and Electrical
Electronics and electrical equipment manufacturing represents another vital industrial sector, accounting for approximately 5.7% of Bulgaria’s GDP. The country has a strong tradition in the electro-technics sector, having been a leading producer of mainframes and personal computers in Eastern Europe during the 1980s. The sector experienced a sharp decline in the early 1990s, but since then Bulgaria has seen a gradual recovery, driven by the entry of multinational companies such as Siemens, Schneider Electric, Hyundai, ABB, Liebherr, and others. These companies have reshaped the industry, focusing on automotive components, cable and wire harnesses, industrial automation, and electronic assemblies. Today, the sector employs approximately 50,000 people across more than 2,300 companies, encompassing both domestic firms and subsidiaries of global multinationals. Bulgaria benefits from a skilled and cost-effective engineering workforce, supported by five technical universities that help supply talent for the growing industry.
Metallurgy and Energy
Bulgaria has a robust metallurgical industry that accounts for about 11% of the country’s good exports. It is currently the sixth-largest producer and processor of non-ferrous metals in the EU, with significant outputs of copper, lead, and zinc. The mining and metallurgy sectors directly employ about 24,000 people and metals and metallurgical products continue to make up a significant portion of Bulgaria’s total industrial output and processing industry. In 2022, they accounted for 13.2% and 17.5% respectively. Bulgaria is the fifth-largest coal producer in the EU, mainly producing lignite. As of 2024, coal generated about 23% of Bulgaria’s electricity, down from nearly 50% in previous years, while nuclear (42%) and renewable energy have increased their share. Bulgaria is also an important power producer and exporter in the region.
ICT
Bulgaria’s IT sector has become one of the most dynamic in the region. Since 2015, it has been expanding at double-digit rates, driven by software development, IT and business process outsourcing (BPO), as well as cybersecurity and FinTech start-ups. The software industry’s share of GDP is estimated to rise to 4.9% in 2024. Cities such as Sofia, Plovdiv, Varna, and Burgas have served as tech hubs, offering a well-educated, multilingual workforce at competitive costs. Bulgaria ranks among the top EU countries in terms of certified IT professionals per capita. Major international technology companies have established significant operations in Bulgaria, including IBM, Hewlett-Packard, and Sutherland.
Tourism
Among the service sectors, tourism is the most significant contributor to Bulgaria’s economic growth. In recent years, the country has emerged as an attractive travel destination, offering inexpensive resorts and beaches that remain relatively untouched by mass tourism. Most visitors come from the UK, Romania, Germany, and formerly also Russia. Popular destinations include the sunny Black Sea coast and winter resorts such as Bansko, Pamporovo, and Borovets. The sector performed remarkably well in 2024, contributing approximately 11.4% of Bulgaria's GDP. Its competitiveness is enhanced by Bulgaria's strategic location, diverse offerings of attractions, and significantly lower costs compared to Western European destinations.
EXPORTS & IMPORTS
Exports play a significant role in Bulgaria’s economy, contributing 55.8% to the country’s GDP in 2024. Bulgaria maintains an active foreign trade profile, with a well-diversified export portfolio. Key export categories include electrical machinery and electronics, copper and copper products, mineral fuels and oils, cereals, vehicles and vehicle parts. Additional notable exports comprise pharmaceuticals, iron and steel products, plastics, and clothing.
The country is well integrated into intra-EU trade, with the European Union accounting for 63.5% of Bulgaria’s total exports. Germany is Bulgaria’s largest trading partner, serving as both the leading export destination (13.7%) and the top source of imports (12.4%).
2023 export and import data:
Main import partners:
Germany – 12.4%
Türkiye – 8.2%
Romania – 6.8%
Italy – 6.7%
Russian Federation – 6.6%
Main export partners:
Germany – 13.7%
Romania – 9.2%
Italy – 7.2%
Türkiye – 5.8%
Greece – 5.5%
Other Europe, nes – 3.8%
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