Bulgaria bucks global trend with optimistic growth forecast
Bulgaria's economy is still tipped to have moderate growth against the backdrop of heightened uncertainty from the global trade war initiated by U.S. President Donald Trump. Despite the worsening forecast for the world economy most international and local institutions still forecast stable economic growth for Bulgaria with some even anticipating an acceleration in GDP expansion. Current projections estimate Bulgaria's economy will grow between 2.4% and just over 3% this year-similar to the 2.8% growth recorded last year.
Techno firm Lace AI grew tenfold in 2024
In 2024, Lace AI, a startup technology company that automates analysis of incoming call center conversation, grew tenfold and secured a 19 million USD investment to expand its teams in California and Sofia and meet surging demand.
The company was founded by Borislav Valkov who discovered the importance of solving customer problems during a single phone call when he was only 10 while helping in his parents' grocery store. Years later, after earning a computer science degree and working at VMware and Facebook AI, his passion for both tech and customer service led him to co-found Lace AI with Stanislav Stoyanov in 2022.
Moody's upgrades outlook for banking sector to positive
Following the affirmation of Bulgaria's credit rating (Baa1), Moody's has upgraded its outlook for the country's banking sector from stable to positive, citing strong economic growth and low interest rates that support business opportunities and portfolio quality.
Analysts also highlight the expected eurozone accession in early 2026, which will eliminate currency risk for banks and enhance liquidity support from the Bulgarian National Bank. While Moody's notes risks from rapid mortgage growth and rising property prices, it acknowledges that regulatory measures have largely curbed the riskiest lending practices.
Capital levels are expected to remain strong, and although profitability may dip slightly in 2025 due to falling interest rates, it should stay well above the EU average and later benefit further from eurozone membership.
Bulgaria bucks global trend with optimistic growth forecast
Bulgaria's economy is still tipped to have moderate growth against the backdrop of heightened uncertainty from the global trade war initiated by U.S. President Donald Trump. Despite the worsening forecast for the world economy most international and local institutions still forecast stable economic growth for Bulgaria with some even anticipating an acceleration in GDP expansion.
