The International Monetary Fund (IMF) has lowered its forecast for Bulgaria's gross domestic product growth in 2026 to 2.8%. This is a downward adjustment of 0.3 percentage points compared to the institution's latest forecasts. The expectations for inflation this year have been revised upwards - to 3.8%, compared to 3.5% previously. The worsened forecasts are not only for Bulgaria and are largely due to the conflict in the Middle East, which has raised the prices of energy raw materials and threatened the global economy. The Fund warns that there is a risk that it will grow at its slowest pace since 2020 if the war in Iran keeps oil prices around $100 per barrel until the end of the year. A number of other local and international institutions have also already revised their forecasts for Bulgaria due to the war in Iran. Overall, expectations are for slightly lower growth than previously expected. More serious effects, however, are likely to be felt on inflation. The Bulgarian National Bank, for example, expects GDP growth to slow only slightly to 3% this year, compared to 3.1% in 2025. However, inflation expectations are up 0.2 percentage points - to 3.7% on average for the year, and in a less favorable development of the conflict it could reach 4.9%, the central bank warns. The latest forecast by the Ministry of Finance is pessimistic. The department is betting on GDP growth of only 2.6% and significantly higher average annual inflation - 4.3%. Last week, the World Bank also lowered its forecasts for the Bulgarian economy, now expecting GDP growth of only 2.6% in 2026, or 0.3 percentage points less than its previous forecast. This comes after the Bulgarian economy outperformed IMF expectations in 2025, driven by strong consumption and high government spending. However, the strong dependence on consumption carries serious risks, especially against the backdrop of high inflation expected in the coming months. At the same time, despite the downward revision for 2026, forecasts indicate that Bulgarian GDP growth will be significantly higher than the expected average growth for the euro area of ​​1.1%. The IMF notes in its spring report that before the war, the global economy performed better than expected and the organization was likely to revise its forecasts upwards. However, the fund now warns that if the conflict in the Middle East keeps oil prices around $100 per barrel until the end of the year, there is a risk that global GDP will grow at its slowest pace since the Covid pandemic - by just 2.5% this year. In 2025, the global economy grew by 3.5%, while prices rose by 4.1%. Without the conflict in Iran, the IMF says economic growth this year would have been similar - 3.4%.

Finding affordable housing is becoming increasingly difficult across Europe. Housing accounts for a fifth of average household income in the European Union (EU). This share is significantly higher in some countries, reaching 35% in Greece, according to Eurostat data. Rising rent costs are a significant burden for Europeans. Rents in the EU are set to increase by 3.1% in 2025. In some countries, rent inflation is reaching double digits. Bulgaria ranked fourth in terms of residential rent growth last year, surpassed only by Croatia, Greece and Hungary. Within the EU, the average rate of change in residential rent costs ranges from 1% in Finland to 17.6% in Croatia. Rent inflation is also high in Greece (10%), Hungary (9.8%), Bulgaria (9.6%) and Romania (8.2%). In addition to Finland (1%), annual rent inflation is below the EU average in Luxembourg (1.6%), Malta (1.7%), Slovenia (1.9%), Germany (2.1%), Denmark (2.2%), France (2.3%) and Spain (2.4%). The Czech Republic (6.1%), Latvia (5.7%), Lithuania (5.6%), Portugal (5.3%), Sweden (5.3%), the Netherlands (5.1%) and Slovakia (5.1%) are other countries where rent increases exceed 5%. When EU and EFTA candidate countries are included, Turkey stands out clearly with an annual rent inflation of 77.6% among a total of 36 countries. It is followed by Montenegro with 18.5%. Accelerating house price inflation, high mortgage rates and limited availability of long-term fixed-rate financing have effectively discouraged many households from buying, leading to greater demand directed towards the rental housing market. Overall, rents have increased significantly more in Eastern Europe and the Balkans than in other regions, with Kosovo (1%) and North Macedonia (3.3%) being exceptions.

Healthcare inflation in Bulgaria in 2026 compared to 2025 is about twice as high as the overall inflation for the country, and underfunding of the healthcare system in our country could cost us 25 billion euros by 2040. This is shown by an analysis by Health Metrics to assess the sustainability of the health insurance system in Bulgaria. According to the analysis, one of the main reasons for the pressure on the system is the aging of the population. Almost half of those working in Bulgaria are over 45 years old - an age after which chronic diseases increase significantly. Bulgaria is also among the fastest aging countries in the EU, while at the same time preventable mortality remains one of the highest in Europe. Financing the healthcare system also remains a serious problem. About 11-12% of people in the country do not have health insurance, and healthcare costs are growing faster than revenues every year. According to experts, there are no sufficiently effective measures to curb this trend. At the same time, more and more funds are being directed towards hospital treatment instead of prevention and early care. The pressure on citizens is also increasing. Bulgarians pay more than twice as much for healthcare compared to the European Union average, with our country in first place in this indicator. Over the past five years, household health spending has increased by about 60%. About 77% of these costs are for medicines, including those that are partially covered by the health fund. Challenges also come from the pharmaceutical sector. In the period 2022-2025, the discounts that companies give to the NHIF have increased by about 115%. However, strict pricing rules - where Bulgaria often orients itself towards the lowest prices in the EU - sometimes lead to certain medicines disappearing or not being offered on the market.

"Industrial Technology Park – Svishtov" EOOD officially acquired the right to distribute natural gas within a closed gas distribution network (GDM). This happens after receiving a license under number L-893-8A, issued on 08.04.2026. With the issuance of this important document, Danube Industrial Technology Park – Svishtov (DITP) sets a kind of precedent, becoming the first industrial park in Bulgaria to have such a license. The license is valid for 35 years. Through the construction and operation of the closed gas distribution network, direct transportation and delivery of natural gas to end customers will be carried out on the territory of the industrial park.

In 2026, Mega Electronics celebrates 15 years of successful operation on the Bulgarian market, establishing itself as a reliable partner in the field of heating, air conditioning, ventilation and gasification. Part of this approach is the use of electric vehicles, charged by its own photovoltaic power plant on the territory of the central base in Sofia. Mega Electronics is an official representative and trusted dealer of world-renowned brands, such as DAIKIN and Uponor, as well as Utek, DanVex, AIRONN, Klepsan, Corona and others. These partnerships allow the company to offer high-quality solutions adapted to the needs of both domestic consumers and commercial and public projects. From residential buildings and houses to schools, hospitals, hotels and industrial sites, the Mega Electronics team implements projects with attention to detail and high professional standards. The company offers comprehensive services - from design and delivery to installation, warranty and post-warranty maintenance of heating, air conditioning, ventilation and gasification systems. Among them are domestic air conditioning systems - wall, floor, cassette, duct and column, VRV/VRF solutions for central air conditioning of offices, shops, restaurants and residential complexes, chiller systems, heat pumps for heating and cooling, underfloor heating for homes and industrial sites, gas boilers and propane-butane tanks, as well as ventilation and air conditioning chambers and air ducts for various types of installations. The company also offers solutions for solar systems and photovoltaic power plants aimed at optimizing energy efficiency. Mega Electronics is present in over 15 cities in the country, with stores and representative offices in Sofia, Plovdiv, Vidin, Vratsa, Pleven, Ruse, Varna, Burgas, Sliven, Veliko Tarnovo, Elena, Elhovo, Dupnitsa, Radomir and Petrich. This provides easy access to the company's products and services for both business clients and individual consumers. Over the years, the company has implemented a number of significant projects of public and commercial importance. Among them are central air conditioning and ventilation system for the golf club and SPA "St. Sofia" in Ravno Pole, VRF system for Silver Stars Mercedes in Sofia, ventilation and air conditioning installation for the Ethnographic Museum "Etara" in Gabrovo, central air conditioning for a sports hall in Vratsa, Park Hotel "Vitosha" and SPA Hotel "Medite" in Sandanski, chiller system for PostBank in Sofia and construction of a ventilation system for the "Mineralna Banya" facility in Bankya.

At a meeting of the Board of Directors of “Gradus” AD, a decision was made to distribute part of the accumulated undistributed profit of the subsidiary “Millennium 2000” EOOD to “Gradus” AD, in its capacity as sole owner of the capital, in the form of a dividend in the amount of 3,000,000 /three million/ euros. The Board of Directors of “Gradus” AD decided to distribute part of the accumulated undistributed profit of the subsidiary “Gradus – 1” EOOD to “Gradus” AD, in its capacity as sole owner of the capital, in the form of a dividend in the amount of 2,000,000 /two million/ euros.

Advance Terrafund REIT bought 351 acres of agricultural land in March and sold 268 acres. As of the end of March, the company owned 181,103 acres of agricultural land and nearly 61 acres of land in urbanized areas. The company has collected over a fifth of the expected revenue for the 2025-2026 business year. The collected revenue for the previous 2024-2025 business year is 82.5% of the expected. For the second consecutive business year, the company has reduced rents per hectare of area. Advance Terrafund management convened a regular annual general meeting on May 14, 2026 in Sofia. Shareholders will vote for a gross dividend of EUR 0.065 (BGN 0.127129) per share from the profit for 2025, or a total of over EUR 6.14 million. The company reported a fivefold increase in net profit to 7.06 million leva for 2025 compared to 1.45 million leva for 2024, according to its financial report as of the end of 2025. Last year, the company sold over 7,200 acres and bought almost 5,100 acres of land.

At its meeting of 14.04.2026, the FSC decided: 1. To issue a temporary ban on the publication of a proposal by Harisson Management Limited, Republic of Malta, for the purchase, through the investment intermediary "Elana Trading" AD, of shares in the capital of "Aroma" AD, Sofia, from the remaining shareholders of the company. 2. To deregister a bond issue issued by "Allianz Bank Bulgaria" AD, Sofia, from the register of public companies and other issuers of securities. The issue is in the amount of EUR 39,500,000, distributed in 395 ordinary, interest-bearing, dematerialized, registered, freely transferable, unsecured, non-convertible bonds, structured to meet the requirements for instruments of eligible liabilities within the meaning of Chapter XIII, Section II of the Law on the Recovery and Restructuring of Credit Institutions and Investment Intermediaries, with a nominal and issue value of EUR 100,000 each, with ISIN code BG2100003230. 3. Sends a letter to "InvestPRO Capital" EOOD requesting additional information and documents in connection with the issuance of a license to carry out activities as an investment intermediary.

Industrial production in February this year compared to the same month in 2025 decreased by 0.1 percent in the European Union and by 0.6 percent in the euro area, according to the initial seasonally adjusted data of Eurostat. Data for Bulgaria show a decline in industrial production of 8 percent in February on an annual basis. Thus, our country has been left with the third largest decline in industry in the EU since December 2025. As of November last year, Bulgaria reported the largest decline in industrial production for the sixth consecutive month. In February this year, the most significant decline in the industrial sector among EU countries was recorded by Luxembourg (17 percent) and Ireland (10 percent). At the same time, the largest annual increases were recorded by Sweden (7.7 percent), Belgium (7.4 percent) and Denmark (5.8 percent). On a monthly basis, compared to January 2026, industrial production in Bulgaria increased by 0.9 percent, which ranks our country in seventh position in monthly growth, after in the previous month the indicator decreased by 3.6 percent compared to December 2025. Industrial production in the EU in February compared to the same month of 2025 decreased for intermediate goods by 1.5 percent, increased for capital goods by 3 percent, decreased for durable consumer goods by 1.8 percent and by 3.8 percent for non-durable consumer goods, and in energy the increase was 1.7 percent. Industrial production in the euro area in February 2026 decreased on an annual basis for intermediate goods by 1.5 percent, increased for capital goods by 2.5 percent, decreased for durable consumer goods by 1.9 percent and by 5.4 percent for non-durable consumer goods, with energy growing by 2 percent.

Egypt is preparing for one of the largest industrial investments in recent years. The reason is advanced negotiations with the Chinese company Henan Zhongfu Industrial, and the project - the construction of an aluminum complex worth about $ 2 billion. The project is planned in the Suez Canal Economic Zone and is part of Cairo's broader strategy for accelerated industrial development and export growth. The facility will be located in East Port Said and will occupy an area of ​​​​over 1 million sq. m. It is expected to create about 3,000 direct jobs, with the emphasis on employment in the Sinai Peninsula region and the cities around the canal. Aluminum is a strategic raw material for a number of industries, as it finds application in areas such as packaging, construction, transportation and energy. The new plant is expected to produce a wide range of products, including aluminum sheets for beverages, battery components and materials for the automotive, aviation and railway industries. According to the head of the economic zone, Walid Gamal El-Din, the project could become the first industrial center of its kind in East Port Said and fill the gaps in the production of high-quality aluminum in the region. In recent years, Egypt has been actively seeking foreign capital in strategic sectors, trying to increase exports and reduce dependence on imports. The Suez Canal Economic Zone is positioning itself as a key industrial and logistics hub. This is fueled by direct access to some of the world's busiest trade routes and to markets in Africa, the Middle East and Europe. For Henan Zhongfu Industrial, the project is part of a broader strategy for international expansion. The company is listed on the Shanghai Stock Exchange and already exports products to dozens of countries, apparently seeking a better geographical position to optimize its access to key markets.