An International Monetary Fund (IMF) team led by Fabian Bornhorst concluded its official visit to Bulgaria from September 10 to 23, as part of the 2025 Article IV consultation. The mission involved meetings with senior government officials, private sector representatives, and civil society organizations.
In a statement released at the end of the visit, the IMF staff highlighted Bulgaria's adoption of the euro as a significant development for the country. According to the statement, "The adoption of the euro is a major milestone for Bulgaria and an opportunity to strengthen institutions, enhance policy credibility, and raise medium-term growth." The team noted that despite a challenging environment, Bulgaria has made progress by securing euro area accession, approving the 2025 budget, and renegotiating its Recovery and Resilience Plan.
The IMF staff observed that Bulgaria’s economic momentum remains strong. The labor market is described as tight while inflation rates are elevated. High wage growth has contributed to income convergence but productivity growth continues to lag behind. There has also been rapid expansion in credit—particularly mortgages—alongside rising house prices. Economic activity is expected to stay robust due to resilient consumption patterns.
The statement emphasized that careful policy calibration will be necessary going forward. It said: "To fully realize the benefits of euro adoption, durably raise living standards, and avoid macro-financial imbalances, policymakers should strengthen fiscal discipline, manage euro transition risks, and accelerate reforms." The IMF team added that maintaining a predictable and consistent policy environment would support these objectives.
The mission concluded with thanks extended to Bulgarian authorities and stakeholders for their engagement during discussions.