Bulgaria’s Economy Records Strongest Growth Since 2022, Surpassing Expectations

Sofia, The Gulf Observer: Bulgaria’s economy demonstrated significant growth in the final quarter of 2024, with GDP expanding by 3.4% compared to the same period in 2023, exceeding the initial 3.1% estimate. This marks the highest economic growth since Q3 of 2022, continuing a year-long acceleration trend.

Throughout 2024, Bulgaria’s GDP grew steadily, recording 2.0% in Q1, 2.4% in Q2, and 2.8% in Q3. In Q4, the economy’s total value reached 57.6 billion leva, with per capita GDP at 8,942 leva. On a quarterly basis, GDP rose by 0.9%, surpassing the previous 0.8% estimate.

The gross value added (GVA) across economic sectors rose 3.1% year-on-year, reaching 49.97 billion leva. Final consumption played a major role in economic expansion, increasing by 4.7%, with household consumption rising by 5.3%. Government spending, however, showed only 1.8% growth year-on-year and declined 1.2% compared to Q3.

Despite the overall positive performance, external trade posed challenges. Exports of goods and services fell by 1.4% from Q3, though they increased 0.2% year-on-year. Imports, however, rose 2.2% quarterly and 1.5% annually. Meanwhile, investment in fixed assets declined by 0.1%, marking the third consecutive quarterly contraction.

Compared to the EU average GDP growth of 0.4% and the eurozone’s 0.2%, Bulgaria’s 0.9% quarterly growth was among the highest in the bloc. Only Ireland (3.6%), Denmark, Portugal, Croatia, and Poland outperformed Bulgaria. On an annual basis, Bulgaria’s 3.4% GDP growth in Q4 ranked among the strongest in the EU, with only six member states reporting higher figures—Ireland (9.2%), Denmark (4.1%), Poland and Lithuania (3.7%), Croatia (3.6%), and Spain (3.5%).

Bulgaria’s full-year GDP growth stood at 2.8% in 2024, reaching 202.86 billion leva, or 31,479 leva per capita, reinforcing its strong economic position within the European Union.