Bulgaria Ranks 38th in Economic Freedom, Between Costa Rica and Oman

In the 2026 edition of the Index of Economic Freedom, compiled by the Heritage Foundation, Bulgaria is placed 38th out of 176 countries, positioned between Costa Rica and Oman. The index evaluates economies on a scale from 0 to 100, where higher scores indicate greater economic freedom. Once again, Singapore leads the ranking with 84.4 points, followed by countries such as Switzerland, Ireland and Australia, all exceeding 80 points. At the opposite end are North Korea, Venezuela and Cuba, which remain among the least economically free.

Bulgaria’s overall score stands at 68.9 points, placing it 22nd among 45 European countries. The assessment is based on four main categories, encompassing a total of 12 indicators, using data from the second half of 2024 and the first half of 2025.

The weakest performance for Bulgaria continues to be in the rule of law category, where the average score reaches 61.6 points. While protection of property rights is rated relatively well at 75.8, the efficiency of the judiciary remains low at 58.5. The most problematic indicator is government integrity, which stands at 48.4 points, the only result below 50 in the country’s profile. The report highlights corruption and Russian influence in sectors such as energy and media as persistent challenges, alongside the broader impact of weak legal enforcement on the business environment.

By contrast, the country performs strongest in the area of government size. Fiscal health is rated at 90.4 points, supported by a relatively low public debt of 24.1% of GDP and an average budget deficit of -2.3%. Tax burden also receives a high score of 89.1, reflecting Bulgaria’s flat tax system of 10% on both personal and corporate income, as well as an overall tax burden of 29.9% of GDP. Government spending is more moderate at 58.4, corresponding to expenditure levels of around 37.2% of GDP.

Results in regulatory efficiency are more mixed. Business freedom is rated at 78.2, placing Bulgaria above the global average, while monetary stability reaches 75.8, reflecting relatively low inflation of 2.6%. Labor market conditions score 62.4, indicating a level above average but still constrained by declining workforce numbers and lower productivity linked to demographic trends.

In the category of open markets, Bulgaria’s EU membership plays a decisive role. Trade freedom is high at 79.4 due to the common European trade framework. Investment freedom stands at 60.0, reflecting equal legal treatment for domestic and foreign investors, while financial freedom remains weaker at 50.0, pointing to limited capital market development and some degree of state involvement in the sector.

Overall progress in Bulgaria’s economic freedom has been gradual and uneven, with the latest increase amounting to just 0.1 points over the past year. The index is built on the principle that economic freedom reflects individuals’ ability to control and use resources without excessive state interference. According to the findings, countries with higher levels of such freedom tend to enjoy stronger economic growth, higher incomes, better education, longer life expectancy and greater innovation.

For Bulgaria, the report suggests that addressing structural weaknesses, particularly in government integrity and judicial effectiveness, could not only improve its standing in future rankings but also lead to tangible economic benefits and improved living standards.