Industry and Investment Drive Bulgaria into the EU’s Top Economic Performers

Bulgaria’s economy continued to show steady momentum throughout 2025, placing the country among the fastest-growing economies in the European Union, according to data presented by the Ministry of Economy and Industry. Outgoing Deputy Prime Minister Atanas Zafirov said the current trajectory reflects Bulgaria’s alignment with the broader EU objective of strengthening competitiveness, as outlined in the Mario Draghi report on the future of the European economy.

Economic developments over the past year were driven primarily by industry, with notable progress in the expansion of industrial zones and increased production in the defense sector. These trends coincided with record growth on the capital market and improved financing conditions for companies. Zafirov emphasized that state involvement played a key role, particularly through targeted support for energy-intensive industries, small and medium-sized businesses, and innovation-focused sectors.

Stronger economic integration is also beginning to deliver tangible results. Steps toward eurozone membership have boosted investor confidence, while efforts to simplify administrative procedures and accelerate digitalization are gradually improving labor productivity. At the same time, Zafirov acknowledged that structural challenges remain, especially the persistent foreign trade deficit and the need to shift more decisively toward an export-led growth model.

The domestic picture is unfolding against a volatile international backdrop. Global markets remain sensitive to geopolitical developments, with oil prices rising in Asian trading amid uncertainty over US-Iran relations, pushing Brent crude to nearly $ 70 per barrel. Meanwhile, solid employment figures in the United States strengthened the dollar, contributing to a modest weakening of the euro to around $ 1.186 in early trading in Frankfurt. These external dynamics continue to influence energy prices and purchasing power and are among the key factors assessed in the Deputy Prime Minister’s broader review of Bulgaria’s financial stability.