Does Bulgaria gain or lose from the state of the European and global economy?

Is Bulgaria gaining or losing from the state of the European and world economy? - A discussion in the "Personal Finance" section

Why is this topic important to us, especially when we, as working individuals, cannot directly influence global trade? Precisely because of the perception that we cannot impact macroeconomic processes.

Any change in consumption patterns, which became especially noticeable during the pandemic, has shown that people are increasingly turning to higher-quality goods, which are bought in different ways – online instead of in physical stores, or experiences instead of physical goods. This forces businesses to change their way of working to meet their customers’ needs and to gain their trust and spending.

Most importantly, consumption has a significant impact on economic growth – 60% of global GDP is driven by consumption. When consumers spend, the economy grows. When they do not, it contracts. Even during recessions, central banks and governments use levers to encourage people to buy more through cheaper debt and increased wages.

Where do we stand when we talk about economic growth?

We can achieve much more, as we have seen historically – both in the past 35 years and during the Kingdom of Bulgaria, when, without European cohesion funds and in the midst of difficult wars, we still experienced periods of rapid development.

What Are Europe’s Strengths in Economic Terms?

Europe has some undeniable economic strengths: it possesses a robust social system, which distinguishes it from other economies around the world. It remains a leader in green innovations, even though the green agenda may not be as fashionable as it once was. Investments in this sector continue, largely driven by the absence of indigenous resources. Europe also has well-developed financial markets, which should not be underestimated.

Bulgaria, however, has started to lose some of its advantages. At the same time, there has been a decline in investments and manufacturing capacities, with these shifting to other parts of the world. All of this is happening in a context where global economic processes easily enter the country, affecting both businesses and consumers.