World Bank sees Bulgaria’s economic growth at 2.5% in 2026

Economic growth in Bulgaria in 2026 is forecast to come in at 2.5 per cent in 2026, followed by 2.6 per cent in 2027, according to the World Bank’s latest Europe and Central Asia Economic Update: Making AI Work: Jobs, Firms, and Productivity, released on October 6.

In June, the World Bank forecast real GDP growth in Bulgaria at 2.6 per cent in 2026, down by 0.3 points compared with its January forecast, and 2.9 per cent growth in 2027, down by 0.2 points compared with the January forecast.

Amid higher energy prices, heightened uncertainty, and weaker economic expansion in trading partners, growth in Europe and Central Asia is likely to slow to 2.2 per cent in 2026 from 2.6 per cent in 2025, the World Bank said.

The slowdown is broad-based, reflecting weakness in most countries in the region, it said.

Excluding Russia, which accounts for about 40 per cent of the region’s output, growth is expected to moderate to three per cent in 2026 from 3.7 per cent in 2025. Global commodity-market disruptions have had a more limited impact than initially expected, the World Bank said.

It said that higher energy prices have kept inflation elevated, while sluggish growth in the European Union and rising competition from other countries are weighing on exports and industrial activity, particularly in the region’s automotive supply chains.

Further disruptions to trade and continued hostilities in Ukraine, additional increases in energy, transport and fertilizer costs, tighter global financing conditions, weaker growth in key trading partners and extreme weather events remain key downside risks, the report said.

(Photo: Shiny Things/ flickr.com)

The Sofia Globe staff

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