Bulgaria Is Overheating From Debt-Fueled Consumption, Not Real Growth, Economist Says

Georgi Angelov, chief economist at the Institute for Market Economics, has warned that Bulgaria’s current economic expansion is being driven less by productive capacity and investment and more by a rapid increase in borrowing and household consumption, creating what he described as a risk of overheating. According to him, the combination of rising consumer and mortgage lending is fueling inflationary pressure while also widening the country’s trade imbalance. He argued that the current trajectory does not reflect a healthy investment-led cycle but rather debt-driven demand. ...