With Bulgaria joining the euro area on 1 January, 21 EU Member States and over 357 million citizens will share the Union's common currency. From 1 January 2026, the euro will gradually replace the lev as the official currency of Bulgaria. In line with the ongoing stability of the exchange rate, the lev will be exchanged at a rate of 1.95583 leva for 1 euro. The two currencies will be used in parallel for a period of one month. When payments are made in leva, the change will be returned in euro. This will allow for the gradual withdrawal of the leva from circulation. The dual display of prices in leva and euro became mandatory on 8 August 2025 and will apply until 8 August 2026. Commercial banks have received euro banknotes and coins in advance from the Bulgarian National Bank (BNB) and have in turn delivered euro cash to shops and businesses. Lev banknotes and coins can be exchanged at the BNB, commercial banks and any post office located in rural areas where there is no commercial bank. Exchange at the BNB is free and unlimited in time. Exchange at banks and post offices is free for the first six months. Banks and post offices may charge exchange fees after 1 July 2026. As of 1 January, 96% of ATMs in Bulgaria dispense euro banknotes, with the rest to follow as soon as possible (within two weeks).

VAT revenues in the state budget are far behind the plan for the year. By the end of November, 19.2 billion leva had been collected from VAT, which is 77.4% of the annual plan, according to data from the Ministry of Finance. Apparently, the year will end without the planned VAT revenues being met. VAT revenues collected by the end of January increased by 15.4% compared to the same period last year. VAT revenues from imports from non-EU countries are slightly over 6 billion leva. VAT revenues from transactions in the country and imports from EU countries amount to 13.2 billion leva and are up by 23.6% compared to the same period last year. The implementation of revenues from other taxes is significantly better. By the end of November, corporate tax revenues were 95.6% of the annual plan, and personal income tax collected 94.2% of the annual plan. Excise duty revenues are 87% of the planned for the year. The total amount of revenues in the state budget from January to November 2025 amounted to 75.41 billion BGN or 83.5% of the annual plan. Revenues increased by 15.6% (10.18 billion BGN) compared to the same period last year. Compared to the budget execution last year, tax and social security revenues increased by 15% (8 billion BGN), non-tax revenues increased by 21.7% (1.93 billion BGN), and receipts from aid and donations, which include EU money, increased by 246.9 million BGN. State treasury expenditures as of the end of November amounted to 81.59 billion BGN, which is 84.4% of the plan for the year. Expenditures increased by 11.47 billion BGN (16.4%) on an annual basis. There has been an increase in spending in a number of areas, including pensions, salaries and capital expenditures. Interest payments made amounted to BGN 1.41 billion, which is an increase of BGN 434.2 million compared to the same period last year. The budget deficit at the end of November increased to BGN 6.181 billion (2.8% of the country's estimated gross domestic product). The size of the fiscal reserve is BGN 20.6 billion, of which BGN 16.4 billion are deposits of the fiscal reserve in the BNB and banks, and BGN 4.19 billion are receivables from European Union funds for certified expenses, advances and others.

Housing prices in Bulgaria increased by 3.8 percent in the third quarter of 2025 compared to the previous quarter (second quarter of 2025), the National Statistical Institute (NSI) announced on its website. The largest increase was registered in the city of Stara Zagora (+7.2 percent), followed by the cities of Sofia (+5.3 percent) and Varna (+5.2 percent). A decrease was registered in the city of Plovdiv (-0.1 percent). In the third quarter of 2025, housing prices in the country increased by 15.4 percent compared to the third quarter of 2024. A report in the NSI shows that in the third quarter of last year, housing prices increased by 3.9 percent compared to the previous one and by 16.5 percent compared to the third quarter of 2023.

The company "Kaolin" EAD is the new concessionaire of the Topolovgrad deposit "Srem", where marble is mined. The company, based in the town of Senovo, enters into the rights of the previous user as his successor. According to the decision of the Council of Ministers, "Kaolin" fully assumes all obligations under the current contract, ensuring continuity in the exploitation of the deposit and compliance with environmental and labor standards. The initial concession contract for the deposit of high-quality building materials was concluded in 2000 with the local company "EVE" OOD for a period of 15 years. In 2017. It was extended for another 15 years.

3,568 people from 19 Bulgarian regions were left without jobs as part of mass layoffs in 2025, according to data from the Employment Agency. A total of 59 cases have been documented that meet the legal criteria: Layoffs of over 10% of the staff in enterprises with up to 300 employees or over 30 people in larger companies. The layoffs were carried out within a short period of time - within 30 calendar days. These are companies from Sofia, Vratsa, Varna, Dobrich, Pleven, Pernik, Kyustendil, Pazardzhik, Blagoevgrad, Kardzhali, Veliko Tarnovo, Lovech, Plovdiv, Targovishte, Ruse, Haskovo, Montana, Stara Zagora and Silistra. Companies in 8 regions - in Sofia-city, Plovdiv, Pazardzhik, Targovishte, Dobrich, Ruse, Vratsa and Montana - laid off over 100 employees. The companies are very diverse, and the reasons for the layoffs are different: ttec and Alorica laid off over 100 people in Sofia against the backdrop of the overall restructuring of the outsourcing industry on a global scale. "Maxcom" and "Leader 96" had to get rid of their staff due to problems in the bicycle market. "Arda" from Ruse, which has a long history in the textile industry, could not withstand the new market conditions in its sector. "Se Bornetse" laid off a total of over 1,000 people in Mezdra and Karnobat, the reason being that due to rising labor costs, production is moving outside Bulgaria. About a third of those laid off have already found new jobs, and only 1,590 of them are registered with the labor offices, almost half of which are in Sofia, and nowhere else are there more than 160 for whom opportunities for new realization or retraining are being sought.

EUR 1.467 million has been allocated in the budget of the Bulgarian National Bank for 2026 for the destruction of banknotes and coins and expert assessments. This is a jump of EUR 1.447 million compared to 2025, and it is related to the destruction of Bulgarian banknotes, coins and coin blanks after the adoption of the single currency. It is planned to mint 218 million euro circulation coins to service cash circulation in 2026. The total planned expenses under this item are 43.9 million euros, however, this also includes 1 million commemorative euro coins with a face value of 2 euros, and in addition, funds are included for exchangeable euro coins that will be issued in 2027. The expenses for new banknotes amount to 511,000 euros and are reduced by 91.2 percent compared to the expenses under the indicator in the BNB budget for 2025. For the design of new issues of banknotes and coins in 2026, expenses of 78,000 euros are planned, which are 4 percent more than the funds approved for 2025. Funds are planned for the development of design projects for collector and commemorative euro coins. The total amount of the BNB's operating expenses for 2026 is set at EUR 178.49 million, and compared to the 2025 budget, their amount has been reduced by EUR 9.569 million, or 5.1 percent. The budget is financed entirely with the BNB's own resources. The expenses related to participation in the ESCB in the 2026 budget are EUR 13.193 million, or 7.4 percent of the total operating expenses of the BNB, increasing by EUR 9.698 million compared to the funds approved for 2025. The expenses under the BNB's investment program for 2026 amount to EUR 89.9 million, with the highest share of the funds (EUR 58.9 million) being planned for financing new construction, reconstruction and modernization in 2026. EUR 56.242 million is planned for the acquisition of a building or office space in other buildings relatively close to the central administrative building of the BNB. Investment costs for BNB information systems amount to EUR 22.431 million and represent 24.9 percent of the total investment program, increasing by EUR 1.596 million compared to 2025. Personnel costs for 2026 are EUR 50.669 million, increasing by EUR 6.972 million compared to 2025 and representing 28.4 percent of the total expenses of the BNB. New monthly remunerations for the Governor, Deputy Governors and other members of the BNB Governing Council have been set for 2026, which are respectively 70 percent, 60 percent and 20 percent of the achieved total average monthly remuneration of bank managers. As a result, the monthly remuneration of the members of the BNB Governing Council is as follows: For the Governor - 15,726 euros; For the Deputy Governors - 13,480 euros each; For the other members of the Governing Council - 4,493 euros each. An additional 129,000 euros have been allocated in the budget to cover these changes.

The healthy food company "Biostyle" - Plovdiv is expanding with an investment of 1.5 million leva. The business of Evgegniya and Dimitar Stamenovi is measured in a production base of 1 decare, 100 tons of annual production and markets stretching from the USA to New Zealand. "Biostyle" specializes in the production of organic and healthy foods, and has now completed a key stage of development - the expansion of its base in the Plovdiv village of Brestovitsa. The investment in the project amounts to about 1.5 million leva, and the revenues for the last year exceed 1 million leva - the best result in the company's history so far. So far, the company has been recording constant growth in its revenues, with 2024 being the most successful to date with 1.09 million leva, and so far it has been consistently profitable. There are 14 employees, including 6 food technologists.

Nearly 150 people, mostly locals, already work at the newly built factory of "Soylemez Rubber Plastic - Bulgaria" in Momchilgrad, with the company's investment plans providing for the creation of up to 500 jobs in the future expansion of production. The enterprise specializes in the production of plastic products for the automotive industry and is built on an area of ​​3,400 square meters. The production facility operates 28 machines, with some of the processes being robotic and meeting modern technological standards in the sector. The management of "Soylemez Rubber Plastic - Bulgaria", with manager Kerem Soylemez, presented the plans for the construction of another factory in the city, as well as for the creation of a robotic depot, which will contribute to higher efficiency and optimization of logistics.

One of the largest players in energy management and industrial automation – Schneider Electric, is starting the construction of a new high-tech factory near Plovdiv. According to Ivelina Nikolova, CEO of Schneider Electric for the Southern Balkans region, the new enterprise will be located right next to the existing base and will add about 10 acres of production area, with the possibility of expansion to 20 acres. It is expected to be operational in 2026, after going through standard administrative procedures. In parallel, the company has already broken ground on its new “smart” factory in the Trakia economic zone – a project for over 107 million leva, which will create 110 new jobs. Schneider Electric is among the companies that are most actively moving capacity to Europe – a trend that works in favor of Bulgaria. The new plant in Plovdiv has a full production cycle for certain products – from engineering and design to final assembly. In Plovdiv, Schneider Electric produces miniature circuit breakers, power distribution components and energy efficiency solutions. The new factory will add higher value-added products, including: smart energy modules, automation components, and electrical infrastructure management systems. This will position Bulgaria as a key supplier to over 30 countries that already use the production from the Plovdiv base.

A decade after founding OfficeRnD, which has established itself as a global leader in coworking space management software with around 3,000 clients in over 150 countries, Miroslav Miroslavov has stepped down as CEO. In 2023, the company attracted an investment of over $50 million from the American fund Blue Star Innovation Partners, which acquired a majority stake of just over 51%, thus beginning a gradual transition in management. Two years later, OfficeRnD appointed a CEO from the US, and Miroslavov remained chairman of the board. The startup 1club builds on the knowledge gained from OfficeRnD, namely how to facilitate the operational activities of clubs and the use of their services by customers. Martin Kirov, another successful entrepreneur and former Director of Revenue at OfficeRnD, joins the project as a co-founder to take on the same role in 1club. 1club is designed as an application for managing sports clubs - from membership cards and payments, through reservations of facilities and areas to automated communication. The application can be used both as a corporate acquisition for company employees and by any end user who wishes to subscribe. 1Club will include a wide range of sports clubs, including swimming pools, jiu-jitsu halls, tennis, yoga and even kitesurfing or paragliding. 1Club is built as an AI-native product, in which automation is possible precisely thanks to artificial intelligence. In addition to a standard interface, the application will have a built-in AI chatbot through which all actions can be performed. The 1club application is expected to launch in the first quarter of 2026. The project is currently under active development, and in parallel with this, the company's registration is underway.

The National Statistical Institute has announced preliminary data on Bulgaria's gross domestic product in the third quarter of the year. GDP reached almost BGN 62.7 billion at current prices, and according to seasonally unadjusted data, growth in real terms was 3% on an annual basis. Thus, the pace slowed down compared to the previous quarter, when it was 3.5%. During the indicated period, the average growth in the European Union was 1.6%, in the euro area it was 1.3%. According to the available data, 4 countries are ahead of Bulgaria, and 2 have the same growth, while in the rest it was lower during the period under review. The situation in the EU seems to be improving slightly according to GDP growth, which is slightly higher compared to the previous quarter. The German economy is expanding by 0.3% in real terms - the highest rate in 3 years. Growth in France is slowing down, but is still positive, and for the fourth consecutive quarter it has remained below 1%. The problems in the public sector there remain serious and in fact the economic growth is being maintained at the cost of a huge budget deficit, which in the first half of the year was 6% of GDP. The pace of development of Italy is not different from that of France, although the budget deficits there are slightly lower. A relatively good example at present is Denmark, which despite the very high share of budget expenditures manages to achieve real growth of 3.9% on an annual basis, while maintaining a budget surplus. Prudent fiscal policy in the event of economic growth accumulates a fiscal reserve that could be used in the event of a negative shock. The countries of Central Europe, which joined the EU later, are at first glance characterized by relatively good performance. Poland (3.6%) and the Czech Republic (3%) are among the leaders, and Croatia's growth also exceeds 2%. However, they also have serious imbalances in public finances. Examples of such are Romania, Poland, and Croatia. According to available data, the budgetary situation in Hungary is stabilizing, but this is at the expense of GDP growth, which is only 0.6% on an annual basis. Overall, in the first half of the year, the deficit in the EU and the EA is close to the 3% of GDP threshold, while the economies are developing relatively slowly. Of course, fiscal policy is not the only factor. The growth-reducing effect is exerted by regulations that are too expensive to comply with, the green transition and its negative impact on energy and industry (especially the extractive industry), which represent serious obstacles to the potential of these economies. To the above-mentioned problems for the Bulgarian economy, we can add the frequent changes in regulations, political uncertainty, the ineffective work of institutions, especially those that should protect property rights and impartially resolve disputes. This is combined with a constantly declining quality of education, which does not prepare personnel adequate to the requirements for qualifications and skills on the labor market, as well as increasingly expensive healthcare. Gross value added increased by 2.8% year-on-year in real terms in the third quarter of the year. For the first time in 10 consecutive quarters, all main components - agriculture, industry and services - made a positive contribution to this growth. The highest rate (3.9%) was achieved in services, with value added in agriculture increasing by 3.2% and in industry by 0.8%. Industry continued its weak performance trend and value added decreased by 0.7%, while that in construction increased by 5.4% year-on-year. The overall unsmoothed industrial production index registered a decline of 7.7% year-on-year. After there were signs of stabilization in the second half of 2024 and some months even saw some increases, since the beginning of 2025 the indicator has once again permanently settled in negative territory. The reason for this can be found mainly in the state of the German economy - the automotive industry is a victim of the transition to battery-powered vehicles and is lagging behind in the competition of Chinese manufacturers. The sector suffers from the highest unit labor costs in the world. Businesses not only in this industry export production to countries with cheaper labor in the EU or with cheaper energy resources in the United States, or both at the same time - to China. Bulgarian manufacturers, who are in the more distant phases of the final consumption of the production chains (i.e., a relatively small part of the added value created in this way remains for them), are losing orders in this way and cannot find a new destination to replace them. The tariffs introduced by the United States are also not having a positive effect. The high activity in construction is the result of the rapid growth of real estate prices. It is conditioned by the expected accession to the eurozone in early 2026, which was presented by the government as a sure source of attracting foreign investment. The development trend in agriculture is also not encouraging, although the added value has been growing during the period under review. The number of animals kept is constantly decreasing, and EU subsidies per head of livestock lead to distortions and encourage fraud. Area subsidies in agriculture also contribute to the deterioration - in this way, farms have become larger, production has become concentrated in cereals at the expense of fruits and vegetables and other crops, where the share of imported production has a permanent tendency to increase. Only services show potential for development. However, the most significant positive contribution is made by state education and healthcare, followed by real estate. This situation is a consequence of a targeted fiscal policy in recent years and the methodology for reporting public sector activities, in which higher spending is directly equated with better results. However, increased spending on education and healthcare further stimulates inefficiency, since the goals set thereby are not achieved. The relative share of functionally illiterate students is getting higher with each subsequent international study. At the same time, all teachers, not just those who really deserve it, are being given higher and higher salaries. A partial solution is the so-called private lessons, which, of course, require additional funds at the expense of parents. The same is true in healthcare, where any attempt at a discussion on increasing efficiency is immediately stifled and the demand for an increase in the health contribution is opposed. On the demand side, the situation looks different. The growth model in 2025 is based precisely on stimulating domestic demand through the so-called income policy - increasing salaries in the budget sector and pensions. At the same time, pressure is being exerted on the private sector, where there is a shortage of personnel, to also increase salaries (and labor costs) even with decreasing productivity, as is the case in industry, because otherwise it will be left without workers. The contribution of domestic demand to GDP growth in real terms is 7.6 percentage points, inventories add another 0.8 pp, while the external sector has a negative contribution of -5.4 pp. All components of domestic demand are increasing on an annual basis - private consumption (9.3%), gross fixed capital formation or investment (9.2%) and government consumption (5.1%). Increased investment activity is generally good news. The problem in general is that the entry of new participants into most markets is extremely difficult. Some of them are highly capital-intensive, as is the case in heavy industry and energy. In others, however, a kind of market closure is possible with the assistance of various administrations and regulators, who, under the pretext of taking care of market stability, actually distort it. In such a situation, higher investments increase production capacity, but along with this, market concentration - one or a few major players acquire even greater power and in fact thus further limit competition. The negative contribution to GDP growth of the external sector is the result of the decline in both exports of goods by 6.7% and services by 2.6%. While for the first component this is logical due to the circumstances that I have already indicated, for services the reasons can be sought in the increase in labor costs, which are a major component, and this probably affects competitiveness. Of particular interest are the data on GDP deflators, in fact they represent an alternative measure of price increases. In the third quarter of 2025, the increase in the deflator (prices) was 11.7% compared to 4.6% in the previous one. NSI data on consumer prices show significantly lower inflation, while deflators are generally less commented on, since they relate to macroeconomic aggregates. However, it is precisely with them that it is more difficult to hide inflation as a result of the expected introduction of the euro. In the third quarter, prices increased sharply, as reflected in the deflators of both private consumption (9.5%) and government consumption (9.7%). At the same time, price changes in international markets were much smaller, with the deflators of exports and imports (0.2%) and 1.1%, respectively, suggesting that the current inflation is almost entirely due to domestic factors.

Argentine President Javier Milley has achieved a major political milestone after parliament approved the 2026 budget, the first to be drafted and adopted during his term, which began in December 2023, RTVE reported. The approved financial framework targets economic growth of 5% in 2026 and a slowdown in annual inflation to 10.1%, well below the 117.8% recorded in 2024 and the 27.9% accumulated by November 2025. It also projects an exchange rate of 1,423 pesos per dollar at the end of the year, lower than current levels. The budget projects a primary fiscal surplus for the national public sector of 1.5% of GDP, with public spending growing by 20.6% and revenue increasing by 20.8%. This is the "first budget with a zero deficit in the country's history," with the surplus not being a temporary goal, but a rule: In terms of demand, the budget foresees private consumption growth of 4.9% - 5.3 percentage points less than in 2025. Public consumption is expected to increase by 1.2%, which is 1.4 points more than this year, as well as investment growth of 9.4% - eight points below the level of the previous reporting period.