Bulgaria's economy grows by 3.1 percent as EU slows

In the second quarter of 2025, the economic growth within the European Union faced slight deceleration, with the GDP growing by only 0.2 percent on a quarterly basis. This was a reduction when compared to the 0.5 percent growth recorded in the first quarter. In the eurozone, GDP increased by 0.1 percent quarterly, which also showed a decline from the previous quarter's 0.6 percent growth. However, annual growth rates remained relatively stable, with the eurozone's year-on-year increase reported at 1.4 percent, echoing the same figure from the prior quarter. Similarly, the U.S. economy demonstrated a more robust performance, growing by 0.7 percent on a quarterly basis compared to a contraction of 0.1 percent earlier in the year. The year-on-year GDP in the U.S. reflected a 2 percent increase, maintaining the same momentum observed in the preceding quarter. Notably, among EU nations, Ireland experienced the highest annual growth at an impressive 16.2 percent, while Austria marked the lowest growth at just 0.1 percent. Bulgaria's economy, specifically, reported a commendable annual GDP growth of 3.1 percent, accentuated by a quarterly increase of 0.7 percent, as stated by the National Statistical Institute. This growth emphasizes Bulgaria’s improving economic landscape despite the broader EU slowdown. The labor market also witnessed a slight uptick, with employment in both the EU and the eurozone climbing by 0.1 percent on a quarterly basis, and by 0.7 percent annually. In the previous quarter, the EU employment rate remained stagnant, contrasting with a more positive trend in the eurozone where employment rose by 0.2 percent. Year-on-year comparisons show a healthier employment scenario, with a 0.4 percent increase in the EU and 0.7 percent in the eurozone, indicating a gradual yet positive trend in job creation across these regions.