Bulgaria’s economy is expected to experience modest growth in 2024, though it remains far below the levels seen in 2017. For 2025, businesses anticipate that economic indicators will either remain stagnant or worsen, according to the annual “2024 through the eyes of business” survey conducted by the Bulgarian Industrial Chamber (BIA) between November 5 and December 6. The survey aims to assess the state of Bulgarian business amid current macroeconomic conditions, with respondents coming from various sectors.
The BIA survey reveals a mixed outlook, with 41% of respondents predicting an economic decline in 2025 and 21% expecting no change. However, there is a slight rise in optimism compared to last year, as 33% of participants foresee economic growth, up from 24% in 2023. Despite this, the majority of businesses highlight several key risks to development, including rising energy and raw material prices, inflation, fiscal and regulatory pressures, and labor costs.
Dobri Mitrev, Chairman of the BIA Management Board, noted that the survey was conducted before the submission of the 2025 draft budget, and he expressed concern that the business sentiment would likely be less optimistic if the respondents had seen the proposed budget measures. He criticized the current fiscal policies, stating that the proposed budget was akin to an inflated restaurant bill, where businesses and citizens are being asked to pay for mistakes made by the government.
Mitrev emphasized the importance of maintaining low inflation, not only to support Bulgaria’s potential membership in the eurozone but also for the country’s overall financial stability. He warned that the budget measures could lead to higher inflation and the devaluation of assets, contributing to increased poverty. He expressed frustration with political instability, suggesting that although forming a regular government might be challenging, it should not lead to further deterioration of the country’s economic stability.
In terms of the business climate, only 15% of enterprises had a positive outlook, which represents a slight improvement of 1% compared to last year. However, a larger proportion – 24% – of businesses reported improvements in their own operations. Mitrev attributed this to Bulgarian entrepreneurs learning to rely more on their own capabilities, given the difficult external conditions.
The survey also highlighted widespread distrust in Bulgaria’s National Assembly and judiciary, which received negligible approval ratings of 0% and 1%, respectively. Conversely, the presidential institution, municipal authorities, and tax administrations garnered more favorable approval ratings, ranging from 36% to 40%.
Despite these challenges, Mitrev stressed that business should be seen as the primary partner in driving economic and industrial growth. He urged the state to adopt a clear strategy for supporting strategic sectors and to ensure fair treatment for all economic operators, rather than relying on inconsistent policies. (Novinite)