World Bank raises economic growth forecasts for Bulgaria
Bulgaria’s real GDP growth is expected to reach 2.9 per cent in 2026 and 3.1 per cent in 2027, according to the World Bank’s latest Global Economic Prospects report, released on January 13.
The World Bank’s economic growth forecasts for Bulgaria for these two years are 0.7 percentage points higher than in its June 2025 report.
The World Bank report said that growth in Europe and Central Asia (ECA) is expected to hold steady at 2.4 per cent in 2026, as solid domestic demand counters the drags from weak euro area growth and heightened trade tensions.
Growth in ECA is then projected to firm to 2.7 per cent in 2027, driven primarily by accelerating activity in Türkiye.
More broadly, the pickup in regional growth next year reflects rebounding exports and rising private consumption amid easing inflation, the World Bank said.
However, growth remains restrained by structural bottlenecks and population aging, and limited job creation is likely to constrain youth entry into the laboir market.
Downside risks to the outlook include a prolonged extension or intensification of Russia’s invasion of Ukraine, a further escalation of trade tensions and policy uncertainty, more persistent inflationary pressures, and tighter financial conditions.
On the upside, growth could be supported by an earlier-than-expected end of active hostilities associated with the invasion, faster productivity gains from artificial intelligence, or stronger trade supported by deeper regional integration or export diversification, the World Bank said.
(Illustration: Jhon Casso)
