BULGARIA Trends and Developments Contributed by: Yordan Naydenov and Hristian Gueorguiev, Boyanov & Co.
Boyanov & Co. 82 Patriarch Evtimii Blvd. 1463 Sofia Bulgaria Tel: +359 2 805 50 55 Fax: +359 2 805 50 00 Email: mail@boyanov.com Web: www.boyanov.com
Welcome to Bulgaria Bulgaria, a medium-sized European nation encompassing 111,000 sq km, boasts a popu - lation of 6.7 million individuals. In 2024, its gross domestic product (GDP) reached USD107 bil - lion (nominal, 2024 est.) or USD229 billion (PPP, 2024 est.) ( “World Economic Outlook Database” , IMF.org, International Monetary Fund, retrieved 16 October 2024), with an annual GDP growth rate of 2.1% (est.). A parliamentary republic, Bul - garia is a member of both the European Union and NATO. It is evident that Bulgaria’s economy, like any small economy, is highly influenced by global events. Several international factors are poised to significantly impact Bulgarian businesses in the next 12 months and beyond. Foremost among these is the ongoing anticipa - tion of Bulgaria’s admission to the eurozone in the beginning of 2026, despite initial expecta - tions for joining in early 2025. The newly elected Bulgarian government applied to the European Commission for the issuance of a Convergence Report in February 2025. The report is expected in June 2025, and the hopes are that Bulgaria will formally join the eurozone on 1 January 2026, after having had its currency, the Bulgarian lev, pegged to the Deutsche mark and then to the
euro for almost 30 years. The state budget pro - jections for 2025 are subject to conservative measures, aiming at maintaining a budget deficit below 3% while keeping the public debt-to-GDP ratio at around 24% in order to cover the admis - sion criteria. Current Bulgarian legislation is fully compatible with the eurozone requirements, and a special law regulating the transition from the Bulgarian lev to the euro has already been enact - ed. Should Bulgaria be admitted to the eurozone, confidence in the Bulgarian economy is expect - ed to rise, debt servicing costs for both the state and businesses will likely decrease, and funds could be redirected to various social or invest - ment programmes. It is estimated that Bulgaria incurs a loss of nearly EUR1 billion annually due to its economy not having fully transitioned to the euro. Following Bulgaria’s inclusion in the Schengen area by air and sea from 1 April 2024, the coun - try became a full member effective as of 1 Janu - ary 2025. Following a long-lasting political effort that was started in 2011, when it was reported that Bulgaria already covered the admission cri - teria, the last remaining land border controls on the country’s roads and railways crossings into Romania and Greece were effectively lifted in the early hours of 1 January 2025, thus remov -
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