Bulgarian stocks were the world's best performers in terms of growth in 2026. What is the reason?

Bulgaria's switch to the euro has triggered the strongest stock rally in the world since the beginning of 2026, Bloomberg writes. The key index of the Bulgarian market SOFIX has risen 18% since January 1 - the date of the official abandonment of the lev (the former currency) - and is now near its highest values in almost 20 years. The trading volume of stocks included in the index increased by 184% in the first week of the year, according to data from the Bulgarian Exchange. The largest growth was shown by the shares of the site itself, IT company Sirma Group Holding and pharmaceutical manufacturer Sopharma.

Joining the euro zone has improved investors' attitude to Bulgaria, a country that has experienced a series of political crises and seven elections since 2021, emphasizes Bloomberg. Analysts compare the current market growth with the rally after Bulgaria's accession to the European Union in 2007, when the SOFIX index rose 44% after climbing 48% a year earlier.

"Market participants expect the changeover to the euro to simplify access for foreign investors and strengthen integration with European financial markets," said Manu Moravenov, executive director of the Bulgarian Stock Exchange.

The transition to the euro is going smoothly: the level of public acceptance of the new currency is growing and there is no sharp spike in inflation, Bulgarian Central Bank Deputy Governor Petr Chobanov said in a Bloomberg statement. "We can count on positive stock market dynamics," he added.

Bulgaria's accession to the eurozone was welcomed by rating agencies S&P Ratings and Fitch Ratings, which upgraded their 2025 sovereign credit ratings for the country.

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