'Bulgaria in Figures' Report Highlights Steady GDP Growth and Regional Challenges

The Bulgarian Chamber of Commerce and Industry (BCCI) President, Tsvetan Simeonov, introduced the latest edition of the “Bulgaria in Figures” report during an interview on Nova TV. Now in its 16th year, this report is published exclusively in English to provide foreign investors with reliable and precise insights into Bulgaria’s economic landscape.

Compiled using data from the National Statistical Institute and the Bulgarian National Bank, the 2024 highlights reveal a GDP growth rate of 2.8% alongside a modest inflation rate of 2.4%. Simeonov emphasized that despite the government’s borrowing, Bulgaria’s public debt remains under 30%, which is considered a notable achievement. He also pointed out that the country continues to benefit from some of the lowest tax rates in the European Union.

While the national unemployment rate hovers around a low 4%, Simeonov noted significant regional disparities, with over 160 municipalities experiencing unemployment rates exceeding 25%. He suggested that these differences represent both a challenge and an opportunity, as corporate tax is set at zero in these areas, potentially attracting investors seeking favorable conditions.

On foreign trade, Simeonov acknowledged a roughly 3% decline in exports for 2024, attributing this to ongoing geopolitical instability and conflicts in Ukraine and the Middle East. Nevertheless, Germany, Romania, Italy, and Turkey remain Bulgaria’s key trading partners. He also touched on a recent EU-US trade agreement that aims to reduce tariffs on essential raw materials, semiconductors, aircraft components, and generic pharmaceuticals, which may further stimulate trade.

Highlighting the underexploited benefits of free trade agreements already in place with countries like Japan, South Korea, and Vietnam, Simeonov remarked that many Bulgarian and European companies are not fully aware of their rights under these deals. Efforts are planned to raise awareness and enhance trade activities by the end of the year.

Regarding tourism, which grew by 8% last year, Simeonov expressed optimism, stressing the sector’s considerable potential, especially given the reduced VAT rate of 9%. He urged that this tax advantage be leveraged to elevate the quality of tourism services across Bulgaria.

Addressing recent populist proposals for price controls and heavy penalties for traders, Simeonov argued for a more effective solution - developing a user-friendly application that allows consumers to easily compare prices. He believes such a tool would better serve both consumers and the broader economy than administrative restrictions.

The “Bulgaria in Figures” report is accessible online for free and, as Simeonov noted, serves as an invaluable resource for Bulgaria’s diplomats and trade representatives abroad, helping to promote the country’s economic profile on the international stage.

Source: Nova TV