Bulgariawould like to participate in euro area Economic slowdown and political uncertainty will have a severe impact in 2025, facing major hurdles assignmentaccording to a recent analysis by the World Bank.
In 2023, Bulgaria We experienced an economic slowdown, mirroring trends observed in our major trading partners. Inflation has gradually slowed, but the pace remains slow, putting the country's ability to attract inflation at risk. euro area membership.
of world bank The report highlights the following concerns: BulgariaIn 2023, real wage growth will outpace productivity growth, further increasing competitiveness. Furthermore, renewed political instability could derail government reform plans and exacerbate existing economic vulnerabilities.
Despite progress in reducing the income gap with the EU, Bulgaria continues to struggle with institutional weaknesses and governance deficiencies. Fiscal support during the recent crisis has helped the economy to recover, but structural obstacles remain, impeding sustained growth and productivity gains.
meanwhile BulgariaThe country's fiscal position remains strong, with public debt among the lowest in the EU. assignment Continue to tackle poverty and inequality. Inflationary pressures and employment setbacks are reversing progress in poverty reduction and highlighting persistent socio-economic disparities.
Consumer price growth slowed in 2023, but concerns persisted about the sustainability of fiscal policy amid the construction credit boom. Banking sector profitability remains high, but growing credit expansion has raised concerns about a potential bubble and a surge in non-performing loans.
Political instability is exacerbating economic uncertainty, and repeated government reshuffles threaten reform momentum. Sixth early election in three years will be even more complicated Bulgariapolicy climate could delay and jeopardize important reforms euro area Affiliation.
meanwhile BulgariaThe budget deficit remains below the Maastricht threshold, with political turmoil and slow fiscal consolidation efforts casting doubt on the country's ability to meet the deficit. euro area Entry requirements. The government's ambitious spending plans will further exacerbate fiscal concerns, and fiscal consolidation efforts will be postponed until 2024.
in spite of assignment, world bank It suggests that Bulgaria's euro area With stable governance and a sustained disinflationary trend, this aspiration is not entirely unattainable. However, continued efforts to address economic vulnerabilities and overcome political uncertainty are essential.
