Incomes in Bulgaria continue to converge with those in the Organization for Economic Cooperation and Development countries, albeit at a slower pace than other countries in the region. However, labor productivity growth is lagging behind. Average income per capita in Bulgaria is reaching 60% of the OECD average. Economic growth needs to gradually rebalance from consumption to investment. The organization warns that a consumption-based growth model, fueled by rising wages and low interest rates, without being backed by productivity growth, is unsustainable. According to the OECD, with economic growth of 3% in 2025, it will slow to 2.6% this year and 2.4% next year. At such rates, it will take 28 years for Bulgaria to reach the OECD average income. Another recommendation is to reduce budget deficits in the coming years and in the long term, despite low levels of government debt to GDP. Trade has slowed, with exports falling and import growth lower than pre-COVID levels. This is due to a loss of competitiveness due to higher energy prices and labor costs for Bulgarian companies. Weak investment further limits growth prospects. Bulgaria’s population is aging rapidly, and external migration is reducing the labor supply, although net migration has become positive in recent years. According to OECD forecasts, inflation will slow to 2.7% this year and further to 2.4% in 2027. However, there is a risk of inflation rising against the backdrop of wage growth. Bulgaria’s rapidly aging population contributes to one of the largest pension system deficits in the EU. The pension fund shortfall is covered through tax revenues, imposing a significant fiscal burden. Therefore, reforms in the pension system are needed, such as the development of private pension pillars and an increase in the retirement age. Stricter measures against the shadow economy are also needed, such as mandatory payment of salaries by bank transfer. The OECD also advises reducing the administrative burden on businesses, reviewing existing licensing and permitting regimes, and facilitating the entry of new companies into the market.

86 percent of Bulgarians live in their own homes, according to Eurostat data, while 14 percent of Bulgarians live in rented accommodation. 68 percent of the population living in households in the EU owned their own home in 2024. For comparison, in 2023 the share was 69 percent. This is according to data from the official European statistics agency Eurostat. 32 percent lived in rented accommodation, which is an increase of 1 percent compared to a year earlier. The most people in Romania live in their own homes - 94 percent, followed by Slovakia - 93 percent, and Hungary - 92 percent. Eurostat data puts Germany and Austria at the bottom of the ranking in terms of own homes, with 47 percent and 54.5 percent owning their own homes, respectively. In Germany, 53 percent of people were tenants of the homes they occupied. A high share of households living in rented accommodation is also observed in Austria (46%) and Denmark (39%), Eurostat data also shows. In 2024, 9.2% of the EU population was unable to keep their homes adequately warm, according to Eurostat data on housing in Europe. However, the data shows that this is an improvement of 1.4% compared to 2023. The highest share of people unable to keep their homes adequately warm was observed in Bulgaria and Greece - both 19%, followed by Lithuania - 18%, and Spain - 17.5%.

The dividend paid by state-owned enterprises in 2025 reached a record 1.634 billion leva, which is the highest level of dividend paid in the last 4 years, with the vast majority of the amount coming from BEH, as a result of an advance dividend payment for the first half of 2025. 96% of the total amount of dividends received or 1.57 billion leva were paid by the Bulgarian Energy Holding. BEH has contributed BGN 669.4 million to the treasury from the reported profit for 2024 and a second time BGN 900.1 million based on 100% of the reported profit for the first half of 2025. The second contribution is an advance and is equivalent to expected lower deductions in the current 2026. All joint-stock companies with state participation were obliged to contribute an advance dividend in the amount of 100% of the profit for the half-year, in compliance with the relevant rules, as well as the sole joint-stock companies BEH, DKK, NKIZ and Terem Holding. A similar huge amount was paid by BEH as a dividend in 2023. At that time, 1.4 billion leva in dividends were withdrawn from BEH - based on the profit for 2022, on the basis of undistributed profits from previous years and on the basis of advance taxation of the profit for the first half of 2023. "Kozloduy NPP" EAD has paid only part of the dividend due - 100 million leva, with a total obligation of 199.7 million leva. A deferral agreement has been concluded for the remainder, with the payment deadline being February 28, 2026. ESO has paid the full dividend for 2024 in the amount of BGN 265 million and an additional advance dividend in the amount of BGN 105 million. NEK also has deferred liabilities - only BGN 30.5 million has been paid out of BGN 139 million due. Bulgartransgaz has paid a dividend for 2021 and 2022 in the amount of BGN 200 million out of BGN 257.2 million due, the remainder has been deferred.

Vestitel, a fast-growing digital connectivity provider headquartered in Bulgaria and part of the Overgas Group, is strengthening its position in the Greek telecommunications market through investments in new infrastructure, high-speed digital routes and solutions for smart cities and utilities. The company operates over 3,000 km of its own fiber optic network between Bulgaria and Greece, with fully protected N×100G transmission and over 40 points of presence. In parallel, Vestitel is developing a LoRaWAN network covering over 30 cities in both countries, supporting smart city and IoT applications. As part of its expansion in Greece, Vestitel is building a new high-speed PoP in the Digital Realty data center in Athens with an initial capacity of over 3,000 Gbps and the ability to scale up to 5 Tbps. The company’s investment plan foresees around EUR 50 million in investments in the region over the next five years, including the development of fiber and underwater infrastructure. A key element of Vestitel’s regional strategy is the Balkans Digital Gateway project, co-financed by the EU under the CEF Digital programme, which aims to connect Bucharest, Sofia, Skopje and Athens with high-speed digital connectivity. The current phase of the project includes investments of EUR 24 million in Bulgaria, Greece and Romania, with EU funding of EUR 10.1 million. In 2022, Vestitel reported over BGN 7 million in revenue and a profit of nearly BGN 560 thousand, and as of September the company had a team of 24 employees.

The outgoing government has allocated EUR 6.053 million in funding for 2026 to the Ministry of Energy for the activities of the State Enterprise "Radioactive Waste" (SE RAW). SE RAW is not entitled to participate in commercial or civil companies and cannot enter into loan agreements with commercial banks or other financial institutions without an explicit decision of the Council of Ministers. The activities of the enterprise are financed by the "Radioactive Waste" and "Decommissioning of Nuclear Facilities" trust funds, which were established to ensure long-term and specific activities related to the safe management of radioactive waste and the decommissioning of nuclear facilities.

Box Now reports 8.2 million parcels and 1.8 million active users in Bulgaria by 2025. The company has over 700 parcel lockers in more than 150 towns in the country. 1,500 online stores offer delivery to the locker as part of the standard order receiving options. Its data shows that 98% of parcels last year were delivered on time. The outdoor vending machines at Box Now are solar-powered, making them autonomous.

"Medical Supplies" OOD has sent a revised tender offer to the minority shareholders of "Momina Krepost" AD. The proposed price per share has not been changed and amounts to 0.44 euros (0.86 leva). "Medical Supplies" sent a tender offer to the remaining shareholders of "Momina Krepost" in December. "Medical Supplies" concluded an agreement on a common management policy through the joint exercise of voting rights in "Momina Krepost" AD with "Sopharma" AD. Thus, "Medical Supplies" secured control over over 90% of the shares of "Momina Krepost" and wants to buy the remaining 169,109 shares. "Medical Supplies" intends to delist "Momina Krepost" from the Bulgarian Stock Exchange. The Financial Supervision Commission (FSC) issued a ban on publishing the tender offer at the end of January. The regulator requested evidence that the offeror will receive real financing to acquire the shares subject to the tender offer, as well as plans for the activities in the three years following the completion of the procedure.

UAE’s largest oil player – Abu Dhabi National Oil Company (ADNOC) – is set to make a historic move on the international capital markets. The state-owned energy giant is preparing to debut on the offshore yuan bond market, a move that clearly signals a reshuffling of the financial layers between the Persian Gulf and China. According to Energy Connects sources, ADNOC plans to raise up to 14 billion yuan (about 2 billion dollars) through the issuance of so-called “dim sum” bonds (securities denominated in the Chinese currency but traded in Hong Kong). The structure of the issue will be multi-tranche, with the company considering different maturities – 5, 10 and 30 years. The deal is expected to be finalized this month, making it one of the most significant corporate yuan issues of the year. ADNOC’s decision is not an isolated case, but part of a larger trend. Since the beginning of the year, the corporate sector has placed a record 57.6 billion yuan in “dim sum” bonds. Data from the think tank Asia House reveals a fundamental shift in the region’s economic architecture. In 2024, China officially overtook the West as the Gulf’s largest trading partner, with trade reaching $257 billion. Forecasts suggest that by 2028, this figure will swell to $375 billion. Even more impressive are the statistics on bank lending. In 2025, financing from Chinese banks to the Gulf region jumped nearly threefold to a record $15.7 billion. By comparison, the combined contribution of banking institutions from the US, UK and eurozone amounted to a modest $4.6 billion. This expansion of the yuan in the heart of the oil world is a clear sign that the “petrodollar” is no longer the sole master of the energy market.