Bulgaria – Social & Economic Perspectives (2014 – 2017)

Along with the Bulgaria’s finance ministry officially announced expectations about the national economic growth concrete details regarding the social and economic perspectives for 2014 – 2017 were unveiled. Practically, this period includes the official office of the current socially oriented government.

The importance of the announced plans determines their seriousness and engagement. Public declaration of such expectations by the government is made for a reason. Apart from their purely political connotation, they also have important social and economic aspects drawing business and investors’ attention towards key factors of the future economic environment.

Inflation

Following some deflation tendencies plans suggest an inflation increase to above 2% and its hold between 1% and 2%. Government’s objective is achieving its steadiness stimulating the overall economic development.

Unemployment

Unemployment exceeded 13% in February 2014, but it is expected to start (slowly) falling down reaching 10.9% in 2017. This should be a direct consequence of the expected economic growth and the overall economic recovery.

Maximal Insurance Threshold

The government assured that their income increase policy will be continued. It will result in the inevitable increase of the maximal threshold level in the state. Currently (2014) it is 2,400 BGN, but according to the plans in 2015 it will reach 2,600 BGN, in 2016 – 2,800 BGN, and in 2017 – 3,000 BGN.

Minimal Wage

Arguably one of the most debated topics was the minimal wage size (a matter – quite ‘hot’ at this point in the EU itself). The finance minister expressed his confidence that the trends will indicate stable increase of the minimal monthly remuneration from the present 340 BGN to 380 BGN in 2015, 420 BGN – in 2016 and 450 BGN – in 2017.

The presented by the government social and economic plans and perspectives for the next 4 years seem quite positive and optimistic in the context of the tendencies in the last few years. Undoubtedly, reasonable optimism is not harmful in any way and even if the development plans remain unrealized at 100%, it is a well-known fact that such type of public information at the current moment is needed for the retention of the positive trend of development and the attraction of even more foreign investors which impact will certainly help the achievement of the presented goals.