Bulgaria's debt ratio stays among the lowest in the euro area at 28.7% of GDP

Bulgaria's general government debt stood at 28.7% of GDP at the end of the second quarter of 2026, among the lowest ratios in the European Union, according to quarterly data published by Eurostat on 21 October. In its first year as a member of the euro area, the country's ratio compares with an average of 88.8% for the 21 euro area countries.

In absolute terms, Bulgaria's debt was EUR 35.396 billion at the end of June, up from EUR 34.395 billion at the end of March and EUR 28.386 billion a year earlier. The ratio rose by 0.1 percentage points from the first quarter and by 2.4 percentage points from the second quarter of 2025, when it was 26.3%.

Eurostat listed the lowest debt ratios in the EU as Estonia (26.1%), Denmark (27.1%), Luxembourg (28.2%) and Bulgaria (28.7%). BTA noted that these four were the only EU countries with debt below 30% of GDP. Of the four, Denmark does not use the euro.

At the other end of the scale were Greece (140.8%), Italy (139.9%), France (119.1%), Belgium (110.2%) and Spain (101.4%). The euro area ratio increased from 88.4% at the end of the first quarter, while the EU ratio rose from 82.5% to 82.9%.

Most euro area government debt, 84.5%, is made up of debt securities, with loans accounting for 13.1% and currency and deposits for 2.4%, Eurostat said.

Low debt gives Bulgaria more room than most euro area members to borrow if needed. However, the trend matters as much as the level. The country's debt ratio has been rising, and the government deficit for 2025 reached 4% of GDP, above the European reference value of 3%, which is why credit rating agencies and the European Commission are watching the 2027 budget closely.