Bulgaria’s business sentiment presented a mixed picture in August 2025, with overall confidence indicators showing slight fluctuations. While some sectors experienced improvements, others faced downturns, reflecting an uncertain economic environment and persistent challenges such as labor shortages.
Key Takeaways
- Overall business confidence saw a modest rise, but sector-specific performance varied significantly.
- Industry and services reported improved sentiment, while construction and retail trade experienced declines.
- Future expectations for industrial entrepreneurs improved, particularly regarding the business situation and employment.
- Concerns persist regarding new orders and the current business situation in certain segments.
Sectoral Performance
The National Statistical Institute’s (NSI) monthly poll indicated that the total business climate indicator remained largely unchanged compared to July. The industry sector saw an increase of 0.9 percentage points, driven by more optimistic expectations from managers about the business situation in the upcoming six months. Similarly, the service sector’s indicator rose by 0.8 percentage points, with managers expressing greater positivity about the current business environment.
Conversely, the construction sector experienced a notable downturn, with its indicator dropping by three percentage points. Managers in this sector reported unfavorable views and expectations regarding the business situation. The retail trade sector also saw a decline, with its indicator falling by 1.4 percentage points, as managers expressed reservations about the current business climate.
Broader Economic Context
Bulgaria’s business sentiment has exhibited a pattern of ups and downs throughout 2025. This trend continued in August, with improvements in some areas offset by weaknesses in others. Despite the overall slight strengthening of the business confidence indicator to 18.3 in August from 17.4 in July, as reported by TradingView, underlying challenges remain. Expectations for industrial entrepreneurs regarding the business situation over the next six months improved significantly, as did the outlook for production activity and employment. However, pessimism increased regarding the level of new orders, and views on the current business situation became slightly less optimistic.
The primary obstacles hindering business development in Bulgaria continue to be the uncertain economic environment and labor shortages, although the impact of these factors showed minor shifts in August.
