Our 2025 GDP growth forecast for Bulgaria remains solid at 2.9% – just shy of the 2015-2019 pre-pandemic average of 3.1%. This follows an estimated 2.3% expansion in 2024. The approval of a new coalition government on January 16 put an end to the political stalemate since the snap elections last October. However, we think the government will find it difficult to achieve a well-functioning and effective coalition, as seven elections have occurred in the last four years.
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