Real GDP per person is relatively low and converging slowly to more advanced countries
Strong export and private consumption growth have limited the slowdown in GDP growth
Headline inflation surged but appears to have peaked
Real compensation has continued to grow
Real wages have grown strongly but youth unemployment remains relatively high
Labour shortages are low overall
Recruitment of skilled workers is a major problem for firms
The COVID-19 vaccination rate and trust in COVID-19 vaccines are very low
Large EU members and neighbours are key trading partners
Interest rates and spreads have risen
The banking system is well capitalised and liquid
The share of non-performing loans in total loans is high but decreasing
Loans to households and house prices have increased rapidly
EU Funds have been an important source of investment
Reversing outward migration could keep debt on a sustainable path
The size of the government is relatively small
A large part of public spending goes to wages and government purchases, while education spending is relatively low
Indirect taxes are the main source of public revenues
The overall tax wedge is relatively low
Half of all taxpayers are registered at the minimum wage
The minimum wage is relatively low
The tax and transfer system does not reduce disposable income inequalities much
Total factor productivity has become the major contributor to growth
Labour productivity levels lag behind Visegrad4 and other countries
Southern regions are more productive and use labour more effectively
The capital stock is low
Most of the workforce are secondary school graduates
The insolvency regime is restrictive
Restructuring is cumbersome
The size of the state-owned enterprise sector is growing with many ministries assuming oversight
SOE-related contingent liabilities, % of GDP
Fossil fuel-based energy supply is responsible for a large part of greenhouse gas emissions
Energy intensity is decreasing and renewables are increasing, but there is room to do more
Corruption is perceived as high, especially legislative corruption and public sector embezzlement and bribery
Bulgaria is largely compliant on tax transparency, but anti money laundering efforts need strengthening