Bulgaria's economy expanded by 3.1% year-on-year in the first quarter of 2026, placing the country fifth in the European Union in terms of economic growth, according to data from the National Statistical Institute (NSI). Around 3.5 million people were employed during the period, NSI deputy chairman Dr. Svilen Kolev said in an interview with NOVA NEWS.

Kolev noted that the revised figures indicate stronger growth than initially estimated, following the arrival of updated sectoral data. He described the 3.1% expansion as broadly consistent with previous quarters, suggesting a relatively stable economic trajectory.

He pointed out that industry was the only sector registering a decline in value added, largely due to weaker export performance. Despite this, overall growth was supported by resilient domestic consumption and rising investment activity.

The gross value added generated by the economy in the first quarter reached EUR 23.83 billion at current prices. According to Kolev, household consumption remains the main driver of expansion, underpinned by increasing incomes. He also stressed that Bulgaria continues to record some of the strongest growth in private consumption across the EU, particularly in the post-pandemic period.

Investment activity has also contributed positively, with both private and public spending playing a role, including funds linked to European recovery mechanisms and support programs.

Structurally, services account for approximately 75% of total gross value added, covering sectors such as trade, transport, logistics, finance, tourism, and information technology. Agriculture and industry represent a smaller share of the economy, reflecting long-term structural shifts driven by digitization and changes in global supply chains rather than short-term fluctuations.

On the labor market, Kolev highlighted that unemployment remains at historically low levels, indicating that the downturn in industry has not significantly affected overall employment.

In a broader EU comparison, he confirmed that Bulgaria ranks fifth in economic growth, alongside Slovenia, describing the performance as positive. He added that the country continues to gradually converge toward average European income and GDP per capita levels.

Kolev concluded that while the economic direction is positive, sustained progress will depend on consistent policy efforts, improved competitiveness, and stronger institutional efficiency.