site.btaInternational Institute for Management Development: Bulgaria Slips Further in Global Competitiveness Ranking for 2025

Bulgaria ranked 57th out of 69 countries in the 2025 World Competitiveness Ranking, regaining only one position compared to the previous year, the International Institute for Management Development (IMD), Switzerland, said on Tuesday. 

Since 2020, Bulgaria has dropped nine places, and nineteen since 2009, placing it among the least competitive economies in Europe, while the Applied Research and Communications Fund and the Centre for the Study of Democracy (CSD) serve as IMD’s national partners for Bulgaria.

According to IMD analysts, Bulgaria could catch up over the next decade, thanks to its stable trade position in the European Union (EU) and strong fiscal discipline, if it urgently modernises its governance, increases investment in innovation, and addresses critical imbalances in its workforce and demographics. 

The annual ranking assesses countries based on four pillars: economic performance, government efficiency, business environment, and infrastructure. Bulgaria receives good marks for macroeconomic stability, with low inflation, a balanced current account, and one of the lowest unemployment rates in the EU. Among the country’s strengths are affordable labour, growing digital connectivity, and increasing exports of ICT services.

Bulgaria must turn stability into long-term growth by leveraging its planned accession to the eurozone in January 2026, which offers a rare opportunity to boost investor confidence and achieve deeper integration into European supply chains, analysts said.

The ranking sets out a sobering picture of deeper structural weaknesses hindering Bulgaria’s transition to an innovation-led economy. These include brain drain, an ageing population, governance deficits, and insufficient investment in research and development. Despite some digital progress, Bulgaria remains near the bottom globally for availability of skilled labour, labour market effectiveness, and trust in institutions.

“The economy cannot forever rely only on low costs, wages, and taxes,” Ruslan Stefanov, chief economist at CSD, said in the release. “Without urgent reforms in education, innovation, and governance, the euro will not be a catalyst—it will be a missed opportunity,” Atanas Nedyalkov, senior analyst for innovation and finance at the Applied Research and Communications Fund, also said.

The survey also highlights the growing gap between perception and reality, which could also be read as a positive sign: business leaders continue to rate “skilled labour” as a key asset for Bulgaria, even though statistical data show a shrinking workforce and accelerating emigration. This may also reflect more recent data that businesses have about the return of qualified professionals to the country. The ranking stresses the need for coordinated national efforts to retain young people, align education with labour market needs, and restore trust in institutions.

According to the study, the global competitiveness picture remains highly unstable.

The ongoing war in Ukraine, escalating economic tensions between the United States and China, and the resurgence of protectionist trade policies have increased uncertainty in world markets. Europe is under growing pressure regarding defence capabilities, industrial base, energy security, and investment attractiveness, the report says.