site.btaInnovation Minister: External Crises Might Slow Economic Growth Down but Bulgarian Economy Remains Relatively Stable

Economic growth may slow down due to external crises, but the Bulgarian economy remains relatively stable, caretaker Minister of Innovation and Growth Irena Mladenova told Nova News on Saturday.

She noted that the conflict in the Persian Gulf and the risks to shipping through the Strait of Hormuz will affect the Bulgarian economy by driving up energy prices, creating inflationary pressure, and causing disruptions in supply chains. According to her, international institutions such as the International Monetary Fund and the Organisation for Economic Co-operation and Development are already acknowledging the risk of a slowdown in global growth.

Mladenova emphasized that the caretaker Government’s priority is to protect citizens through targeted measures for the most vulnerable groups, while simultaneously accelerating the transformation of the economy - through energy efficiency, digitalization, automation, and investments in high technology.

She described Bulgaria’s economic growth of 3.1% in 2025 as a positive sign, albeit largely driven by domestic consumption. In her view, this structure is understandable given the global uncertainty, and the focus should be on future policies and enhancing the economy’s resilience.

In her words, Bulgaria’s accession to the eurozone could contribute to economic growth. 

She highlighted weak investment activity despite low tax rates as the main challenge. Among the reasons she cited were problems in the business environment, as well as the need to restructure the economy so that it does not rely on low labour costs. According to her, a transition to an economy based on research and development and high technology is necessary.

Regarding inflation, Mladenova noted that it stood at 3.5% at the end of 2025, with data for the first months of this year showing lower levels - 2.3% for January and 2.1% for February on an annual basis, and 2.6% for March, which represents a relative increase over the month. She emphasized that energy prices were the leading factor behind this trend. According to forecasts, including those of the Bulgarian National Bank, inflation could reach around 3.7%. Mladenova noted that the institutions are closely monitoring price trends to prevent unjustified price increases.

The caretaker Minister of Innovation and Growth highlighted the development of innovation in defence and dual-use technologies as a key priority. She noted that an agreement has been signed between test centres from NATO’s DIANA network and Sofia Tech Park, aimed at strengthening cooperation between science, business, and institutions. Mladenova announced that Bulgaria plans to apply to establish an accelerator within this network, which will support startups by providing access to a testing environment, mentoring, and funding.

Regarding the framework agreement on defence cooperation between Bulgaria and Ukraine, which caretaker Prime Minister Andrey Gurov signed earlier this week, Mladenova underscored that the document is non-binding and provides opportunities that can be realized in compliance with national legislation and with the approval of the National Assembly.

She also emphasized the need to strengthen technology transfer through closer ties between science and business, noting that work is underway to create a network of technology transfer centres with a central hub at Sofia Tech Park and regional units at universities.

In conclusion, Mladenova stated that the caretaker Government is closely monitoring the economic situation and is ready to take additional measures if necessary, underscoring the importance of long-term policies for the sustainable development of the economy.