Bulgaria’s Economy Grows 3.4% in Q4 2024, Exceeding Expectations

Bulgaria's economy expanded by 3.4% year-on-year in Q4 2024, surpassing forecasts, according to United Bulgarian Bank (UBB). This brought overall growth for 2024 to 2.8%, based on preliminary data from the National Statistical Institute (NSI), CE Report quotes BTA

UBB Chief Economist Emil Kalchev highlighted Bulgaria's request for extraordinary convergence reports from the European Commission and European Central Bank, aiming to meet eurozone inflation criteria. He noted that inflation trends from February to April will be crucial.

Economic activity was driven by final consumption, which grew 4.3% and made up 77.8% of GDP. Investments fell by 1.1%, reflecting political instability, but had a limited impact. Net exports remained positive at 3.5% of GDP.

Growth was led by services, construction, and industry, while agriculture contracted by 7% but had minimal influence on GDP. The strongest service sector growth (5.5%) came from public administration, education, healthcare, and social work.