Bulgaria overview


In Bulgaria we focus on:

  • Enhancing Competitiveness through Improved Efficiency, Governance and Innovation. The Bank will support financial restructurings and provide long term finance for competitiveness enhancement, and energy efficiency investments as well as support regional economic integration by providing financing for cross-border investments and exports. For smaller companies, the Bank will work with and through financial intermediaries to ensure sufficient access to funds and explore expanding its business advisory activities.
  • Strengthen the financial sector intermediation through targeted investments and improved governance. The Bank will explore risk sharing products in order to support overall intermediation and in particular MSME development as well support sector consolidation. The Bank will also seek to support the deposit insurance fund with a combination of investment and policy dialogue.
  • Narrowing the Infrastructure Gap through Commercialisation, Reform and Efficiency. The Bank will seek to support commercialisation and private sector participation in transport, gas and municipal infrastructure, including by working with the authorities to facilitate leveraging of available EU structural funds. In the energy sector, the Bank is ready to renew its dialogue with the authorities with the view to support the energy sector reform strategy and would provide investments to support public utilities financial and operational performance, while continuing energy efficiency investment across the economy.

The EBRD’s latest strategy for Bulgaria was adopted on 8 July 2015

EBRD forecast for Bulgaria’s real GDP growth in 2017 3.5%

EBRD forecast for Bulgaria's real GDP growth in 2018 3.2%

After growing 3.9 per cent in 2016, the economy expanded by 3.6 per cent and 3.9 per cent in the first two quarters of 2017. Private consumption became the main driver of growth in 2017 as a result of the tight labour market, a 10 per cent year-on-year increase in average wages and growing consumer confidence.

Government spending remained subdued due to budgetary tightening and the transition to the new EU funds programming period, resulting in budget surpluses in 2016 and the first three quarters of 2017.

Following three consecutive years of decline, investment grew in 2016-17, driven by the private sector. As a result of growing domestic demand driving imports, the contribution of net exports to growth turned negative in the first half of 2017. In 2017 and 2018, growth will be driven by private consumption and investment, as fiscal consolidation continues and the contribution of net exports to growth remains negative due to strong domestic demand. Overall, growth is expected to stand at 3.5 per cent in 2017 and 3.2 per cent in 2018.

<a class="btn btn-ebrd-more more" countries="" #!bulgaria"="" en="" 2017.tr-ebrd.com="">Bulgaria in the EBRD’s 2017-18 Transition Report