Photo: Association of Banks in Bulgaria
The Association of Banks in Bulgaria (ABB) published its quarterly information with key highlights on the economy and the banking sector in Bulgaria in the first quarter of 2025. The quarterly information materials are prepared by the Banking Policy and Analyses Division at the ABB and they are published both in Bulgarian and in English.
HIGHLIGHTS
▪ In Q4 2024, the Bulgarian economy grew by 3,4% y-o-y following the formation of positive contribution of changes in inventories, government, and private consumption.
▪ Inflation accelerated by 3,9% y-o-y in Q1 2025.
▪ At the end of March 2025, the unemployment rate in Bulgaria reached 3,8%.
▪ At the end of March 2025, the budget deficit is 1,2 % of the projected GDP.
▪ At the end of the first quarter of 2025, the total assets of the banking system reached BGN 197,6 billion, growing by 12,0% y-o-y (90,5% of the projected GDP).
▪ At the end of the first quarter of 2025, the banking sector reported BGN 889,4 million in net profit.
▪ The financial result of the banking system is influenced by the rising interest income and the improvement of the quality of the credit portfolios of the banks.
▪ In the first quarter of 2025, credit growth remained high for both households and businesses, with the share of non-performing loans continuing to decline in almost all business segments.
▪ As of the end of March 2025, there was a decrease in interest rates on newly contracted housing loans in BGN, on newly contracted consumer loans in BGN and EUR, as well as on newly agreed loans for enterprises.
▪ In the first quarter, there was an increase in interest rates on newly contracted housing loans in EUR and a decrease in interest rates on deposits in BGN and EUR for enterprises and households.
The ABB issue “The economy and the banking sector in Bulgaria – Q1 2025” can be read and downloaded here.