FX.co ★ Bulgaria GDP Growth Eases in Q1

In the first quarter of 2025, Bulgaria's economy grew by 3.1% year-on-year, aligning with preliminary estimates yet slowing slightly from the 3.4% peak of the prior quarter. This deceleration largely stemmed from unfavorable net trade contributions; exports continued to decline, falling by 3.2% compared to a 1.7% drop in fourth quarter, while imports accelerated, rising by 4.6% against the previous 2.2%. On the other hand, domestic demand gained momentum, with final consumption growth climbing to 7.2% from 5.8% in Q4, boosted by robust household and government expenditure. Investment in the form of gross fixed capital formation showed significant improvement, increasing by 7.9% compared to a modest 1.4% rise earlier. Quarter-over-quarter, the economy grew by 0.6%, a slight slowdown from the 0.9% growth observed in the preceding quarter.