Bulgaria Records Steepest Industrial Decline in the EU, But Economy Still Grows

Bulgaria has registered the sharpest drop in industrial output among all EU member states, according to the latest Eurostat figures. In June, the country’s industrial production shrank by 8.2% compared to the same month a year earlier. This marks the seventh month in a row that Bulgarian industry has recorded contraction. Across the EU as a whole, output in June edged up slightly, with a modest increase of 0.5%.

A total of 11 EU states reported declines in industrial activity for June, but Bulgaria’s was by far the most pronounced. The countries with the next largest contractions were Hungary, where production fell by 4.9%, Slovenia with a drop of 4.3%, and Germany, where output slipped by 3.8%. Analysts point out that the slowdown in German industry, which has long been a key engine for European manufacturing, is spilling over to countries like Bulgaria whose enterprises are closely tied to it.

Despite the severe industrial downturn, other areas of Bulgaria’s economy are showing resilience. Data from the National Statistical Institute indicates that gross domestic product rose by 3.1% in the second quarter compared with the same period last year. The same growth rate was also recorded in the first quarter. The main driver of this expansion is domestic consumption, which increased by 6.5%. Investment activity also went up during the period, although exports posted a decline of 4.9%, underlining the uneven nature of the country’s economic performance.