Due to Bulgaria's accession to the eurozone, the international rating agencies Fitch Ratings and S&P Global Ratings have upgraded the country’s long-term foreign currency issuer default rating to ‘BBB+’ with a stable outlook, which is the highest level of investment-grade ratings in the medium category. Bulgaria’s short-term growth prospects are assessed as stable. The country’s economy is forecast to grow by 2.4% in real terms in 2025, with an average growth of 2.8% through 2028.
Fitch Ratings expects real GDP growth of 2.8% in 2025, unchanged from 2024, as global trade uncertainties are offset by the improved domestic political situation. Fitch Ratings views euro adoption as positive for the rating. It will provide the sovereign with reserve-currency status, strengthen the monetary policy framework, reduce transaction costs, eliminate exchange-rate risk to corporate and household balance sheets and open up additional external funding options. Bulgarian banks will also have access to the ECB's liquidity facilities.
Edited by Ivo Ivanov
Published and translated by Kostadin Atanasov
Photo: BTA
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