Bulgaria's economy shows mixed results after adopting the euro currency

Bulgaria is experiencing a complex economic picture one month after switching to the euro. The country's unemployment rate has fallen to a historic low of 3.2%, and industrial production increased slightly in December. However, economic growth slowed to 2.9% in the last quarter of 2025, and inflation remains a persistent issue.

The central bank governor said the currency transition itself added 0.3-0.4% to inflation. While the pace of price increases has slowed, January data shows inflation is still rising, putting pressure on the national budget. At the same time, the construction sector contracted, and the economy is dealing with a growing trade deficit due to rising imports.