Bulgaria eyes top CEE growth spot by 2027, says Allianz Trade

Bulgaria may emerge as one of Central and Eastern Europe’s fastest-growing economies through 2027, according to Allianz Trade projections. The country expects annual GDP expansion exceeding 3 percent, driven by household spending and wage increases. Unemployment should decline to approximately 3.3 percent by 2027, while inflation moderates from 3.6 percent in 2025 to 2.6 percent in 2027.

Bulgaria’s planned eurozone entry at the start of 2026 will strengthen economic confidence and stimulate domestic activity. Giovanni Scarpato from Allianz Trade notes that households and businesses are expanding deposits and borrowing in anticipation of euro adoption. Lower financing costs should support consumption and investment growth across sectors.

Defense spending commitments will add 2.8 percentage points to cumulative GDP growth by 2030. However, global trade tensions pose risks through reduced European demand and supply chain disruptions. Allianz Trade forecasts worldwide bankruptcies rising 6 percent in 2025 and another 4 percent in 2026 before stabilizing in 2027.

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