site.btaBulgaria’s 2025 Economic Growth Exceeds 3%, but Structural Reforms Are Needed

Bulgaria is expected to post economic growth of over 3% in 2025, one of the highest rates in Europe, but this is still not sufficient, outgoing Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev told Bulgarian National Radio on Sunday. According to him, in the medium and long term, the main factor for the competitiveness of Bulgaria’s economy will be the quality of its human capital.

“Politicians talk their usual political clichés – sometimes about tourism, sometimes about agriculture – but no one talks about the needs of Bulgarian industry, which is a significant part of the economy, accounting for nearly 28% of GDP,” Donchev said. He identified business infrastructure as a key factor, including the creation of new industrial zones, noting that when an industrial zone is ready, investments materialize much faster. He also stressed the importance of how the state intervenes in these processes, warning that public funding should not crowd out private investment.

The outgoing Deputy PM underlined that Bulgaria is strong in the field of artificial intelligence, pointing out that the country has its own sovereign AI model, something few states can claim.

Commenting on criticism that the government has not done enough to protect the 1.5 million Bulgarians living below or near the poverty line, Donchev acknowledged that although social payments have increased over the past four to five years, they remain insufficient. He stressed that any additional social payments for specific groups must be accompanied by a clear answer on where the funding will come from – whether through higher taxes or cuts in other policy areas.

Regarding the upcoming election campaign, Donchev said he intends once again to develop his arguments about the need for economic transformation in Bulgaria, which includes efforts and measures to achieve much higher value added from the economy.

He disputed claims of a sharp drop in investment, arguing that in 2025 alone BGN 12 billion were invested from the state budget, with a similar amount coming from the National Recovery and Resilience Plan and EU programmes. “From the perspective of public investment, these are record levels,” Donchev said. He added that foreign direct investment in 2025 will exceed that of the previous year, with exact figures expected in mid-year.

Turning to the upcoming snap elections, Donchev said that “there is nothing wrong with political disagreement, but it is wrong to argue over election technology just before elections”. According to him, endless disputes undermine trust in the electoral process as a whole. He expressed the view that the declining voter turnout is due not only to frustration with political rhetoric, but also to eroded confidence in election technology.

Donchev also said it was difficult for him to comment on the political intentions of former president Rumen Radev (2017–2026) due to a lack of specific proposals.