FX.co ★ Bulgaria Q3 GDP Growth Confirmed at 1-Year Low

In the third quarter of 2025, the Bulgarian economy experienced a year-on-year growth of 3.2%, aligning with initial forecasts but showing a deceleration from the 3.4% growth seen in the second quarter. This represents the slowest growth rate since the last quarter of 2024. The growth moderation is attributed to a deceleration in final consumption, which registered a 7.9% increase compared to 8.5% in Q2, alongside a substantial reduction in government spending growth, which fell to 2% from 10.1%. Nevertheless, household consumption picked up pace, increasing by 9% from 8.3%. Additionally, net external demand negatively impacted GDP as exports of goods and services declined further (-5.6% compared to -5.4%), while imports surged significantly (4.1% versus 0.4%). Conversely, gross fixed capital formation showed a slight improvement, rising to 8.7% from 8.6%. On a quarterly comparison, the economy grew by 0.7% in Q3 2025, consistent with preliminary projections but a marginal decrease from the 0.9% growth recorded in the preceding quarter.