Bulgaria has the opportunity to reap the full benefits of eurozone membership, but this will require stronger fiscal discipline, effective management of transition risks, and accelerated structural reforms, the International Monetary Fund (IMF) mission said on Tuesday, as reported by the Bulgarian News Agency (BTA).

The IMF expects GDP to grow by around 3% in 2025–26, supported by private consumption and credit expansion. Inflation is expected to ease, though it will remain at around 3.5%, driven by rising labour costs: wages are rising faster than productivity, which puts pressure on profits and pushes companies to raise prices.

The IMF also recommends investing in human capital, improving the rule of law, enhancing competition in public procurement and reforming the energy sector.