Bulgaria’s Economy Grows 2.7% in Second Quarter

Bulgaria’s economy expanded by 2.7% year-on-year in the second quarter of 2026, with strong household consumption and rising investment continuing to support growth, according to express estimates from the National Statistical Institute (NSI).

On a seasonally adjusted basis, GDP increased by 0.6% compared with the first quarter. In nominal terms, economic output between April and June reached 29.68 billion euros, while gross value added stood at 25.72 billion euros.

Domestic consumption remained the largest component of the economy. Final consumption rose by 7.6% compared with the second quarter of 2025 and by 1.6% from the previous quarter. It accounted for 81.9% of GDP, or 24.31 billion euros.

Investment also recorded solid growth. Gross fixed capital formation increased by 8% year-on-year and by 1.8% compared with the first quarter. Total gross capital formation amounted to 6.52 billion euros, representing 22% of GDP.

Foreign trade, however, continued to weigh on the economy. Exports of goods and services declined by 2.8% from a year earlier, while imports increased by 6.9%, leaving Bulgaria with a negative foreign trade balance.

Gross value added across the economy increased by 2.2% year-on-year and by 0.6% on a quarterly basis.

The labor market showed mixed developments. Bulgaria’s unemployment rate fell by 0.1 percentage points from the same period a year earlier to 3.5%. At the same time, the employment rate among people aged 15 to 64 declined by 0.5 percentage points to 70.5%.

There were 107,100 unemployed people during the period. Men accounted for 60.9% of the unemployed, with an unemployment rate of 4%, while women represented 39.1%, with an unemployment rate of 3%.

Education remains a major dividing line in the labor market. The highest unemployment rate was recorded among people with primary or lower education, at 13.5%. It fell to 3.3% among people with secondary education and to just 1.4% among those with higher education.

Long-term unemployment also accounted for a substantial share of the total. Some 45,000 people, or 42% of all unemployed, had been without work for more than a year.

Youth unemployment among people aged 15 to 29 increased slightly to 8.1%. Another 12,400 unemployed people, or 11.5% of the total, were seeking work for the first time.

The number of employed people aged over 15 reached 2.92 million, equivalent to 53% of the population in that age group.

Services continued to provide the largest share of jobs, employing 1.95 million people, or 66.9% of all employed. Industry accounted for 816,200 workers, or 28%, while agriculture, forestry and fishing employed 150,000 people, representing 5.1%.

Most employed people were employees, accounting for 85.6% of the total. Of these, 76.3% worked in the private sector and 23.7% in the public sector. Self-employed people represented 8.1%, while employers accounted for 6%.

Employment among older workers showed a notable improvement. The employment rate for people aged 55 to 64 increased by 1.2 percentage points to 71.5%.

Meanwhile, 1.06 million people aged 15 to 64 were outside the labor force, representing 26.8% of the age group. Education or training was the reason for inactivity among 41.9% of them.

The number of discouraged workers aged 15 to 64 stood at 15,900.