Bulgaria faces several pressing challenges for business in 2026, with high wage costs, a shortage of qualified workers, and state-imposed financial conditions topping the list. These findings emerge from the 33rd “European Economic Survey 2026” conducted by the Bulgarian Chamber of Commerce and Industry (BCCI) in coordination with the Association of European Chambers of Commerce.

According to the survey, 43% of Bulgarian companies anticipate an increase in domestic sales next year, while a nearly equal share, 42.8%, expects sales to remain stable. Similarly, about half of businesses forecast moderate growth in exports. Despite these expectations, labor shortages remain acute, driving up hiring costs and complicating efforts to recruit skilled professionals. Over 62% of firms stated they do not plan to reduce their workforce in 2026, underscoring the importance of retaining talent amid these constraints.

Investment projections show a cautious stance: 46% of companies anticipate holding investment levels steady, while 40% are more optimistic, hoping to expand as Bulgaria enters the Eurozone and benefits from an improved credit rating. Entrepreneurs stress the need to manage inflation pressures caused by rising wages while reducing social security contributions and training costs, a challenge echoed across the EU.

Businesses also call for regulatory reform to ease administrative burdens, particularly for small and medium-sized enterprises (SMEs). Simplified rules, coupled with digital infrastructure, would free financial and human resources to boost competitiveness, innovation, and growth. Entrepreneurs urge the next EU long-term budget to address SMEs’ needs, providing effective and streamlined funding opportunities through instruments such as the European Competitiveness Fund.

To address the labor crisis, businesses propose standardized approaches to enhance investment in upskilling, reskilling, and vocational training, promote adult learning, and establish frameworks for business succession. Overall, Bulgarian and European companies see predictability, financial support, lower social contributions, reduced energy costs, and regulatory simplification as essential to strengthening the economic environment in 2026.