Bulgaria Posts One of EU's Strongest Retail Growth Rates

Bulgaria continued to record one of the strongest increases in retail trade in the European Union in July, despite a slight monthly decline. Eurostat data show that the volume of retail sales in the country was 5.6% higher than in July 2025.

The result puts Bulgaria well ahead of the EU average, where retail trade grew by just 1.0% year over year. In the euro area, annual growth was even weaker at 0.6%.

Only a handful of EU countries recorded stronger annual growth than Bulgaria in July. Cyprus led with an 8.6% increase, followed by Latvia at 7.1%, Sweden at 6.4% and Lithuania at 5.9%.

The picture was somewhat different on a monthly basis. Bulgarian retail trade declined 0.2% in July compared with June, marking the first monthly contraction after two consecutive months of growth. Sales had increased by 0.7% in May and another 0.4% in June.

Even so, Bulgaria's monthly decline was smaller than the contraction recorded across the EU and euro area. Retail trade in the EU fell 0.4% from June, while the euro area registered a 0.6% decline.

Some of Europe's largest economies experienced significantly sharper monthly drops. Germany recorded a 3.4% decline, while retail sales fell 0.9% in Spain and 0.3% in both Italy and Poland.

Bulgaria's strong annual performance also comes after several months of substantial growth. Retail trade was up 7.3% year over year in February, followed by a 12.4% increase in March, 7.4% in April, 7.9% in May and 7.1% in June. Growth slowed to 5.6% in July but remained firmly positive.

The figures indicate that Bulgarian retail activity continues to stand considerably above its level a year earlier, even as the pace of expansion has moderated.

The retail trade volume index measures changes in the actual quantities of goods sold while adjusting for the effects of price changes. Eurostat's figures are also adjusted for calendar and seasonal effects.

Bulgaria's performance contrasts sharply with several major European markets. Germany recorded a 2.5% annual decline in retail trade in July, while Italy fell 1.0% and Spain declined 0.7%. Romania posted the largest annual contraction, at 5.7%.

Across the EU, food, beverages and tobacco products recorded the strongest annual increase in July, with sales rising 1.3%. Non-food goods increased 0.9%, while retail trade in automotive fuels declined 2.0%.

Overall, the data point to continued strong consumer activity in Bulgaria. Although retail sales slipped slightly from June to July, the country's 5.6% annual increase remained more than five times the EU average and kept Bulgaria among the bloc's strongest performers.

Source: Sofia Morning News