World Bank lowers Bulgaria's 2027 growth forecast to 2.6%

The World Bank has lowered its economic growth forecast for Bulgaria in 2027 to 2.6%, down from a previous estimate of 2.9%. The institution maintains a 2.6% growth projection for 2026 and expects growth of 2.7% in 2028.

According to the report, Bulgaria's budget deficit is projected to reach 5.3% of GDP in 2026, up from 3% in 2025. This increase is attributed to rising social expenditures, municipal investments, and energy subsidies. While strong domestic demand—driven by real wage growth and increased lending—has supported economic activity, it has also contributed to inflation and a widening deficit.

Regarding technology, Bulgaria ranks third in the Europe and Central Asia region for data center capacity per capita, with 2.89 MW per million inhabitants. However, AI adoption remains lower than the EU average, with only 8.5% of Bulgarian enterprises with at least ten employees using at least one AI technology in 2025. Ivaylo Izvorski, Chief Economist for Europe and Central Asia at the World Bank, noted that the primary risk over the next decade is likely to be the insufficient adoption and adaptation to artificial intelligence rather than its overuse.