FX.co ★ Bulgaria GDP Growth Eases in Q1

In the first quarter of 2025, Bulgaria's economy demonstrated a year-on-year growth of 3.1%, according to preliminary estimates. This represents a slight deceleration from the previous quarter's two-year high of 3.4%. The slowdown was primarily attributed to a negative contribution from net trade. Specifically, exports saw a further decline of 3.4%, compared to a 1.7% drop in the fourth quarter, while imports grew at an accelerated rate of 6.2%, up from 2.2%. Conversely, domestic demand exhibited stronger momentum, with final consumption growth increasing to 7.1% from the previous 5.8%, underscoring robust household and government spending. Additionally, gross fixed capital formation experienced a significant improvement, rising by 6.1% compared to just 0.8% in the preceding quarter. On a quarterly basis, the economy grew by 0.6%, a slight decrease from the 0.9% expansion observed in the last three-month period.