site.btaBulgarian Businesses Restrained but Positive about 2024 Economic Development

The 31st annual edition of the EUROCHAMBRES Economic Survey (EES2024) reflects a period of transition and adaptation to new economic realities driven by geopolitical instability and global market challenges, the Bulgarian Chamber of Commerce and Industry (BCCI) said on Monday. BCCI is a partner to EUROCHAMBRES in the survey for the 25th time in a row.

Business confidence in Europe is recovering, albeit cautiously, due to ongoing global and regional economic challenges. Concerns about access to energy and raw materials, skills shortages and labour costs are among the key challenges shaping the findings, based on the views of 43,000 companies in 27 European countries. A total of 795 entrepreneurs, representatives of Bulgarian businesses, participated in the survey.

Eurochambres President Luc Frieden summed up the results as: "Restrained but with positive business expectations for 2024".

The results of the survey for Bulgaria present more favorable expectations regarding the main economic indicators. Attitudes towards an increase in domestic sales are more positive, while in terms of sales in foreign markets and employment levels, retention is more likely to be expected. In terms of employment forecasts, companies that expect the levels to hold are around 48%, while those expecting an increase in 2024 are 41%. In the context of the business climate, Bulgarian entrepreneurs demonstrate confidence for 2024, expecting improvements compared to the previous year. More than 54% defined more positive attitudes about the overall development of businesses compared to 2023. This positive attitude is also supported by expectations of access to funds from the National Plan for Recovery and Resilience.

Despite the challenges of rising wages and production costs, as well as uncertainty about supply chains and the economic outlook, Bulgarian businesses shared an optimistic outlook.

Significant risks to the global economy include geopolitical instability, particularly in relation to the war in Ukraine and the situation in the Middle East. These factors could affect the supply of raw materials, lead to disruptions in global supply chains and increase international prices, which could have a negative impact on both foreign trade and domestic demand in Bulgaria.

The main challenges in 2024, indicated by companies in Bulgaria, are expected to be related to the lack of qualified staff and increased labour costs, as well as the financial conditions of doing business. The requirements for sustainable development are not yet considered as one of the major challenges by Bulgarian entrepreneurs, but in some European countries they are already a main focus.