2022 was a year filled with challenges both for the business community and the citizens. It was marked by political instability, the effects of the COVID-19 pandemic and the high inflation rates. Despite the initial high expectations for the business climate, and the desire for recovery after the main waves of the pandemic had passed, the year was marked by the war in Ukraine, which further hampered supply chains and showed the need to diversify energy sources not only in our country, but also throughout the EU. This is stated in an analysis prepared by BCCI’s "Economic Analyses and Policies" Department.
The high inflation – a result of the recovery, global money printing and the high energy prices, was one of the main challenges in 2022. The introduced changes in the compensatory mechanisms - both in time and in technical terms, made it impossible for companies to predict and plan their product prices. Fortunately, in 2023 a predictability of electricity market for non-household consumers is expected, which will reassure entrepreneurs and enable them to balance the risk. At the same time, however, there is no compensatory mechanism for natural gas users, to account for the difference in the high price at least during the winter months when the costs are most significant.
Against the background of all those challenges, businesses in Bulgaria demonstrate positive attitudes in their expectations for 2023, despite European skepticism. The results of the 30th Eurochambres Economic Survey 2023, carried out for the 24th consecutive time in cooperation with BCCI, show that against the background of general European negativity, Bulgarian entrepreneurs remain optimistic in their expectations for their sales revenue in the country and abroad, as well as for the opportunities that the labour market provides in terms of hiring, the investment and the overall business climate. The main challenges for Bulgaria and Europe in 2023 are the availability (prices) of energy and raw materials, followed by the lack of qualified personnel and the rising labour costs.
This year’s results of the “World Competitiveness Ranking” of the Institute for Management Development (IMD) - Switzerland show that, despite the inflationary pressure and the political challenges that the country faced in 2022, Bulgaria retains its 53rd place in terms of competitiveness among the 63 participating countries from all over the world. At the same time, in the UN e-Government Readiness Index, the country registers a drop of eight positions.
Our country climbs 6 positions in The Heritage Foundation’s “Economic Freedom Index”, ranking 29th among 177 countries worldwide, and 20th among 45 European countries, with overall score above the regional and world averages.
Once again, Bulgaria remains at the bottom of the European Commission’s Digital Economy and Society Index (DESI), occupying the 26th place out of 27 countries, followed only by Romania. Bulgaria’s results have improved in recent years, but according to the EC, "this pace is not enough to be able to catch up with the other member states".
In 2023, the experience and expertise of BCCI will once again be focused on monitoring Bulgaria’s place in the international rankings, which are the primary source and reference point for every foreign investor. The Chamber will continue to work for the integration of Bulgaria in the OECD, the Eurozone and the Schengen area, and will remain an uncompromising and objective partner and critic of the state institutions through constructive proposals, in order for the country to overcome the crises and improve the business and investment environment.