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Investor Presentaiton

Stable GDP growth and continuous convergence The Bulgarian economy has returned to growth following the pandemic downturn Bulgaria and EU27 GDP annual growth rates (%) For the 2010-2019 period, the economy grew on average by over 2.1% per annum with GDP growth reaching 4.0% in 2019. In 2020, the COVID-19 pandemic led to a GDP decrease of 4.0%. However GDP fully recovered in 2021 with growth of 7.7% on the back of robust private consumption growth and strong rebound in goods exports. The Russian-Ukrainian conflict has, since February 2022, changed the global macroeconomic environment. As a result GDP growth in Bulgaria in 2022 stood at 3.9%. GDP growth for 2023 is expected to fall to 1.8% before rising back to 3.2% in 2024. Over the medium term the National Recovery and Resilience Plan aim to increase investment is expected to support GDP growth. Gross Value Added ("GVA") increased by 3.3% on average in the 2018-2022 period, mainly due to the services sector, particularly in the areas of trade, transport, accommodation and food service and information and communication activities. Structure of Gross value added (GVA) by sector (%) 4.0 2.7 2.1 1.8 -4.0 7.7 6.0 3.9 3.4 -5.6 2018 2019 2020 2021 2022 Bulgaria EU Source: Eurostat as of 30 October 2023 Real GDP components (EUR billion) 32.7 30.9 36.6 35.3 32.5 70.2 71.1 70.8 71.2 67.0 9.7 10.1 10.2 9.4 10.0 4.3 3.9 3.8 4.0 8.3 5.0 8.4 9.1 9.2 9.7 3.7 4.2 4.5 4.9 3.8 21.7 20.7 20.3 24.9 -0.3 -0.7 20.1 -2.8 -3.0 2018 2019 2020 2021 -4.6 2022 2018 2019 2020 2021 2022 ■Industry (except construction) ■Construction Agriculture, forestry and fishing Services Private consumption Gross fixed capital formation Government expenditure Net Exports of goods and services Source: Eurostat ¹Forecasts are official estimates and there can be no assumption that such figures will be met Source: Eurostat 9
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