Bulgaria: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bulgaria

June 13, 2024

Preview Citation

Format: Chicago

Bulgaria: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bulgaria, (USA: International Monetary Fund, 2024) accessed September 16, 2024

Summary

For two years in 2021–23, a political stalemate hampered policymaking as Bulgaria needed to stir the exit from the pandemic, cope with the global inflation shock and the fallout of Russia’s war in Ukraine, secure its energy supply, implement reforms to unlock EU Funds, and prepare for euro adoption. The government formed in June 2023 prioritized euro and Schengen areas accession, NGEU funds delivery, and judicial reforms. It fell in March 2024, increasing the risk of delays in key policy decisions. Despite the succession of international and domestic shocks, the economy showed resilience and can achieve a soft landing if inflation decelerates towards 2 percent as expected under the baseline. Moreover, longstanding intertwined challenges remain: convergence toward EU average income is lagging peers, investment is low, perception of corruption is large, inequality is high, poverty is widespread, the population is shrinking, and the growth model still relies largely on brown energy.

Subject: Expenditure, Fiscal policy, Fiscal stance, Income, International organization, Labor, Monetary policy, National accounts, Pension spending, Revenue administration, Wages

Keywords: EU grant, Fiscal stance, Global, IMF's article, IMF's transparency policy, Income, Pension spending, Policy discussion, Policy measure, Potential GDP, Wages

Publication Details

Pages:

55
Volume:

---
DOI:

---
Issue:

---
Series:

Country Report No. 2024/163
Stock No:

1BGREA2024001
ISBN:

9798400276156
ISSN:

1934-7685

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Staff Country Reports