Within spitting distance of Eurozone success?
After falling below 2%, inflation in Bulgaria has been gradually increasing and is expected to continue rising in the coming months. According to the latest macroeconomic forecast by the Bulgarian National Bank (BNB), consumer price growth will accelerate to 3.5% by the end of the year, driven mainly by state-regulated goods and services.
Despite this, the BNB believes Bulgaria will meet the eurozone's price stability criterion as early as January and maintain compliance throughout 2025. The central bank has also revised its economic growth forecast downward to 2.5% from 2.7%, citing weaker-than-expected private consumption due to rising inflation.
Real estate partnership doubles
The European Bank for Reconstruction and Development (EBRD) has become an equity investor in the retail park projects of Belgian fund Mitiska REIM and Bulgarian real estate company Park Lane Developments. The two partners initially planned to build five retail parks over five years but have now increased their target to ten, with projects already underway in Sofia's Hadji Dimitar and Nadezhda neighborhoods.
Tanya Koseva-Boshova, Managing Partner at Park Lane Developments, highlighted that EBRD's involvement brings stability to investors and reassures potential tenants of their long-term commitment. Additionally, the partnership signals the growing potential of Bulgaria's retail park sector, attracting more foreign investors and setting the stage for future expansion into Romania and Greece.
European partners expect credible budget
Despite initial optimism following Bulgaria's Schengen approval, the path to adopting the euro is proving more complex. While inflation remains just 0.1 percentage points above the required threshold, concerns now focus on the country's fiscal health, with European partners expecting a credible budget plan from the newly elected government.
With a deadline at the end of February to present a financial strategy, the government faces tough decisions on spending cuts or revenue increases, yet there are no clear signs of a concrete plan. If Bulgaria fails to act, it risks delaying euro adoption beyond January 1, 2026, and missing a rare political window of opportunity.
Within spitting distance of Eurozone success?
After falling below 2%, inflation in Bulgaria has been gradually increasing and is expected to continue rising in the coming months. According to the latest macroeconomic forecast by the Bulgarian National Bank (BNB), consumer price growth will accelerate to 3.5% by the end of the year, driven mainly by state-regulated goods and services.
