site.btaBulgaria's Economic Growth Slows in Q1 2025

Bulgaria’s economic growth slowed in the first quarter of 2025, reaching 2.9% year-on-year, according to the Bulgarian National Bank’s (BNB) quarterly Economic Review, Issue 2/2025, approved by the BNB Governing Council. Domestic demand made a significant positive contribution to growth, while net exports had a negative impact, the review says, as quoted by the BNB press centre on Wednesday. The issue presents an analysis of key economic trends in the Bulgarian economy based on macroeconomic indicators published on July 9, 2025.

Private consumption rose by 9% year-on-year in real terms. This reflected rising employment and increased household disposable income.

Amid significant labor shortages and higher public sector wages, compensation per employee rose by 10.7% in nominal terms (6.5% in real terms) during the first quarter of the year.

Between January and May 2025, the annual growth rate of household credit was close to the levels seen at the end of 2024, reaching 20.7% in May. While consumer credit growth slowed, housing loans, which remained the main driver of household credit growth, maintained a steady growth rate, the analysis notes.

Uncertainty surrounding US trade policy reviews continues to negatively impact global economic activity. Given Bulgaria’s high degree of integration into global trade, these factors are expected to negatively affect this country’s real exports of goods and services.