War in Ukraine and Falling EU Demand Drive Bulgaria’s 2025 Export Decline
Bulgaria’s export sector continued to face challenges in 2025, marking the third consecutive year of decline
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Meglena Plugchieva, former Deputy Prime Minister and ex-Ambassador to Germany, Switzerland, and Montenegro, voiced skepticism about the planned priority for Bulgarian products in the so-called “People Shops.” Speaking to Bulgarian National Radio, she pointed out that while the idea sounds promising, Bulgarian production itself is practically nonexistent.
Plugchieva stressed that for such an initiative to be successful, there first needs to be real support and stimulation of Bulgarian manufacturing. She warned that the concept risks becoming mere good PR without effective policy behind it.
She also questioned why the Ministry of Agriculture and Food (MAF), rather than the Ministry of Economy, is overseeing the creation of the state-owned “People Shops” company. According to Plugchieva, MAF’s mandate is to manage agricultural policy and support farmers, but she sees no evidence that this responsibility is being fulfilled. She referenced a divisive project related to the agri-food chain under MAF’s wing and emphasized the need for better support of small farmers to enhance their competitiveness through associations.
Adding to the public’s distrust, Plugchieva recalled the earlier establishment of a State Oil Company that never truly materialized, drawing parallels to the current state-owned venture.
On the topic of Bulgaria’s new Law on the Introduction of the Euro, Plugchieva highlighted concerns about the government’s approach, describing the law as based on an assumption that businesses are ready to exploit the system. This leads to heavy-handed state intervention with sweeping control powers and sanctions, raising fears of subjective enforcement and potential abuse of these powers, which could further strain state-business relations.
She also noted that Bulgaria’s economic climate has worsened partly due to US tariffs and called for policies that stimulate and support the economy. Without a strong economy, she stressed, the country cannot sustain essential public services such as social welfare, education, healthcare, and pensions.
Plugchieva concluded by reminding politicians that their strength depends on the health of the national economy and warned that any economic decline will inevitably affect social stability.
In December 2025, Bulgaria’s industrial sector showed modest growth following two consecutive months of decline, yet on an annual basis, production fell for the 13th month in a row.
In December 2025, Bulgaria’s total exports of goods rose by 2.5% compared to the same month a year earlier, reaching 6.7364 billion leva (€3.44 billion), after a contraction of 4% in November.
Villages surrounding Plovdiv are increasingly hosting Nepalese workers, brought in by local entrepreneurs to address Bulgaria’s persistent labor shortages.
Between 2019 and 2023, Bulgaria’s industrial sector has experienced a significant contraction, with roughly 104,557 jobs lost, nearly half of them in the processing industry, amounting to almost 15% of the country’s industrial workforce
Agricultural land prices across the European Union continued to rise in 2024, with Eurostat data showing a clear upward trend both in sales values and rental costs, although developments varied significantly by country.
Bulgaria is preparing to open new border crossings with both Serbia and Turkey as part of efforts to improve regional connectivity, the Cabinet’s press service reported
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