# Bulgaria economic slowdown and Q2 2026 performance > Live situation record from CLSTR: https://clstr.news/situations/bulgaria-economic-slowdown > Updated: 2026-09-07T11:22:48.000Z. Sources: 18. Developments: 7. Mid‑July 2026 reports showed a cooling Bulgarian economy, with a 15‑20% drop in housing transactions and households strained by food prices. By late July, the labour market lost momentum as companies froze wages and hiring slowed, particularly in the IT sector. By mid-August, updated Q2 2026 data from the National Statistical Institute provided a more nuanced view of this deceleration. While momentum slowed from the 2.9% growth seen in late 2025, preliminary figures show the economy grew by 2.8% annually in Q2 2026, outpacing the EU average. This expansion was driven by an 8% rise in gross fixed capital formation and a 7.6% increase in domestic consumption, though exports fell by 2.8% while imports rose by 6.9%. The labor market showed mixed signals. The unemployment rate fell slightly to 3.5%, with 42.0% of the 107,100 unemployed persons classified as long-term unemployed. The employment rate for the 15–64 age group was 70.5%. Despite earlier reports of wage freezes, the average monthly gross wage in Q2 2026 reached 1,444 euros, a 9.8% increase compared to Q2 2025. Growth was most pronounced in the private sector (11.5%) and specific industries like mining (24%) and agriculture (19.5%). The service sector remains the dominant economic driver, accounting for 72.4% of value added. ## Timeline ### 2026-09-07: Bulgaria GDP grows 2.8% in second quarter of 2026 Bulgaria's GDP grew by 2.8% year-on-year in Q2 2026, driven largely by the service sector, which accounts for 72.4% of the economy. 6 sources. https://clstr.news/cluster/bulgaria-gdp-grows-28-in-second-quarter-of-2026 ### 2026-08-14: Bulgarian economy grows 2.7% in Q2 2026, outpacing EU average Bulgaria's economy grew by 2.7% annually in Q2 2026, outpacing the EU average. Growth is driven by strong domestic consumption and investment, despite a decline in exports and rising imports. 6 sources. https://clstr.news/cluster/bulgarian-economy-grows-27-in-q2-2026-outpacing-eu-average ### 2026-08-14: Bulgaria unemployment rate falls to 3.5% in Q2 2026 Bulgaria's unemployment rate fell to 3.5% in Q2 2026, though long-term unemployment remains at 42% of the total unemployed population. 3 sources. https://clstr.news/cluster/bulgaria-unemployment-rate-falls-to-35-in-q2-2026 ### 2026-08-12: Bulgaria average wages reach 1,444 euros in Q2 2026 Bulgaria's average monthly gross wage rose to 1,444 euros in Q2 2026, a 9.8% annual increase driven largely by the private sector and the mining industry. 4 sources. https://clstr.news/cluster/bulgaria-average-wages-reach-1444-euros-in-q2-2026 ### 2026-08-01: Bulgaria's labor market cools, job ads drop and plumbers surge into top demand Bulgaria's job market is cooling with vacancies down to 21,000 and a 33% fall in ads, especially in IT (‑60%). Meanwhile plumbers have entered the top‑10 most demanded jobs, earning €1,800‑€3,500. 2 sources. https://clstr.news/cluster/bulgarias-labor-market-cools-job-ads-drop-and-plumbers-surge-into-top-demand ### 2026-07-25: Bulgaria's labor market cools as job competition spikes and vacancies rise Bulgaria’s labour market cools: wages freeze, hiring slows, applications surge per vacancy, and free job postings rise while new listings fall, especially in IT. 3 sources. https://clstr.news/cluster/bulgarias-labor-market-cools-as-job-competition-spikes-and-vacancies-rise ### 2026-07-13: Bulgaria's housing market cools while living costs remain higher than in Germany Bulgarians note cheaper food in Germany despite higher wages, while Bulgaria's housing market cools with falling sales and mortgage challenges. 2 sources. https://clstr.news/cluster/bulgarias-housing-market-cools-while-living-costs-remain-higher-than-in-germany --- Cite as: Bulgaria economic slowdown and Q2 2026 performance. CLSTR, https://clstr.news/situations/bulgaria-economic-slowdown