Bulgaria Business Confidence Lowest Since 2020

Bulgaria’s business climate in industry rose to 15.5 in January 2026 from 12.5 in the previous month. Six-month business expectations strengthened (14.5 vs 10.6), while the employment outlook improved (1.8 vs 1.2). Stocks of finished goods declined at a slower pace (-2.1 vs -2.5), and fewer firms reported no difficulties (14 vs 12.8). Firms continued to cite an uncertain economic environment (46.8 vs 50.5) and labor shortages (34.5 vs 34.8) as their main challenges, although both showed modest improvement. On the downside, current production activity worsened (-6.2 vs -2.9), and total orders deteriorated (-18.2 vs -15.3), with both domestic (-17.8 vs -20.3) and foreign demand (-26.4 vs -27.7) remaining weak. Industrial confidence fell (-1.9 vs -1.3), and production expectations for the next three months edged slightly lower (10.5 vs 10.6). Selling prices are also expected to decrease (12.8 vs 14.8).

Bulgaria’s business climate in industry fell to 12.5 in December 2025 from 14.6 in November, the lowest since December 2020. Current production activity turned negative (-2.9 vs 1.6), while total orders remained weak (-15.3 vs -15.7), with domestic (-20.3 vs -19.3) and foreign demand (-27.7 vs -23.6) both declining. Stocks of finished goods also fell (-2.5 vs -0.8). Industrial confidence softened (-1.3 vs -3.1%), and employment outlook moderated (1.2 vs 2.1), with six-month business expectations easing (10.6 vs 12.2). On the positive side, production expectations for the next three months improved (9.0 vs 5.6), and selling prices are expected to rise (14.8 vs 10.8). Main obstacles remain the uncertain economic environment (50.5 vs 45.6) and labor shortages (34.8 vs 33.6), while fewer firms reported no difficulties (12.8 vs 14.4).

Bulgaria’s business confidence indicator fell to 14.6 in November 2025 from 15.5 in October, marking the lowest reading since March. Assessments of the current business situation weakened (17.0 vs 17.8 in October), alongside a modest decline in the outlook for both production activity (5.6 vs 5.9) and employment (2.1 vs 4.0) over the next three months. Expectations for the business situation over the next six months also eased (12.2 vs 13.2), while pessimism about the level of orders persisted (-15.7 vs -18.5). The uncertain economic environment (45.6 vs 44.9) and labor shortages (33.6 vs 36.0) remained the main obstacles to industrial activity. Meanwhile, selling prices are expected to rise slightly over the next months, with the balance indicator increasing to 10.8 from 9.3 in October.