IMF: 2014 – Positive Outlook for Bulgaria

Very good news for Bulgaria as well as for all investors interested in that country came from the International Monetary Fund in their traditional annual economic prognosis. The specialists confirmed their expectations for a steady growth (1.6 %) of the Bulgarian economy in 2014 which, compared to the recent economic slow-down within the EU, could represent quite an achievement.

The stable financial policy as well as the properly functioning business-oriented tax system is pointed as advantage of the national economy. Thanks to these specific features of the economic competitiveness, turned almost into national priorities, the investors’ interest towards Bulgaria seems to be reviving (in compliance with the recent official expectations of the Prime Minister Plamen Oresharski).

No rather low or rather high inflation is expected by the IMF specialists either. Its steady pace is given as another reason for the vitality of the local economy and evasion of any unpredictable scenarios related to the national currency devaluation which stability under the strict regime of the active currency board already seems constant.

IMF expects slight unemployment decrease as well – effect that will hardly be so ostensible, but will certainly enhance the local economic environment. Positive impact on that will also be realized as a result of the fact that 2014 will be the first year in which Bulgarian citizens will have equal access to all other 28 EU member-states’ labor markets (including the markets of the developed western economies that dropped the restrictions against Bulgarian workers).

The major IMF recommendations, however, emphasize the importance of the need for taking adequate measures regarding the long-delayed reforms in a series of sectors – education, healthcare, pension system, etc. Only thus could it be possible not only to generate a steady economic growth trend, but also realize an accelerated-pace prosperity in an effort to achieve the average EU productivity figures as well as living standard.

Advisable is also the accomplishment of a relatively appropriate speed and quality of European funding assimilation on the available programs and funds. According to IMF this could be another key factor of further economic progress.

If succeeds in the attainment of these goals, Bulgaria will undoubtedly guarantee its bright perspectives not only for 2014, but also for decades ahead reaching a high level of functioning market economy with considerable competitiveness on a world scale.