Wage Growth in Bulgaria Continues: UBB's Economic Analysis

The average salary in Bulgaria continues to register stable increases, with no signs of a lasting slowdown in the growth rate so far. This is stated in an analysis of the main trends in the Bulgarian economy by United Bulgarian Bank (UBB), prepared on the basis of the latest data from the National Statistical Institute.

Against the background of a steadily decreasing trend in harmonized unemployment (3.3 percent as of December 2025) and moderate price pressure in recent months, the average monthly salary again registered a stable growth of 11 percent in the fourth quarter of 2025 compared to the same quarter of the previous year, 2024.

“Indeed, this pace is slightly slower compared to those of the second and third quarters, when the average salary increased by 12 percent, but it still does not give reason to conclude that the pace of wages in the country is permanently slowing down. The average salary increased in both the public sector (by 10.6 percent) and the private sector (by 11.2 percent).” - Dr. Emil Kalchev, Chief Economist of UBB

The economic activities with the largest increase in the last quarter were: “Real estate operations” with 18.1 percent, “Administrative and support activities” with 15.6 percent, “Construction” with 15.2 percent.

The pace of price growth somewhat calmed down in January 2026, with the harmonized annual inflation falling to 2.3 percent, and consumer inflation to 3.5 percent. In the fourth quarter of 2025, the Bulgarian economy achieved a good result, reporting real growth of 2.9 percent on an annual basis.

UBB forecasts for 2026 a real GDP growth of 2.7 percent in Bulgaria and an average annual inflation of 3.4 percent.