Categories: Bulgaria

Bulgaria sees improvement in business climate

Bulgaria‘s overall business climate indicator rose to 21.7% in June 2025, a 1.9-percentage-point increase on the previous month, and an indication of a broadly positive business sentiment across a variety of sectors.

The improvement in the indicator was driven by more optimistic assessments and expectations in construction, retail trade, and services, while in industry, there was little change, month on month, the data, from Bulgarian statistics office NSI, showed.

Industrial entrepreneurs viewed the current business situation as ‘favourable’, however expectations for the next three months remained cautious. Labour shortages, coupled with an uncertain business environment, are seen as the main obstacles to growth in this sector.

Construction sector

The construction sector showed a notable month-on-month improvement, with the business climate indicator increasing by 2.8 points to 26.1%.

Businesses in the construction sector have a ‘positive assessment’ about their current activity, and expect it to remain stable over the next three months. However, more than two fifths (43.2%) of firms in this sector cite a shortage of labour as an issue, followed by economic uncertainty and material costs.

Retail sector

The retail sector reported the largest month-on-month improvement in business climate, with the indicator rising 3.6 points to 30.4%.

As the data showed, retailers were positive about their current business conditions but are ‘reserved’ regarding future sales and supplier orders. Economic uncertainty was the most pressing concern cited, surpassing market competition, while the share of retailers who expect sales prices in the sector to increase over the next three months is increasing.

Services sector

Lastly, in the services sector (excluding trade), the indicator rose by 3.0 points to 15.4%, with businesses expressing optimism about current business conditions and demand, however expectations for the coming three months were more tempered.

The uncertain economic climate was the most cited concern by businesses in the services sector, followed by market competition and a shortage of labour. Many in the industry also cited slight price increases. Read more here.

Editor

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