IMF Staff Country Reports

Bulgaria: Selected Issues

June 13, 2024

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Format: Chicago

International Monetary Fund. European Dept. "Bulgaria: Selected Issues", IMF Staff Country Reports 2024, 164 (2024), accessed November 24, 2024, https://doi.org/10.5089/9798400277757.002

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Summary

This Selected Issues paper focuses on the Bulgarian pension system. The paper provides an overview of the pension system and describes measures taken in the last decade to increase its financial sustainability. It highlights how the measures taken during and after the Coronavirus disease 2019 (COVID-19) pandemic structurally affect the financial sustainability of the pension system. The paper also shows that the recent measures compound the long-term pressure related to an aging population. It also details policies that could contain the projected increase in pension spending. During the COVID-19 pandemic, the Bulgarian authorities increased pensions substantially to support pensioners’ living standards and aggregate demand. These increases have become permanent and improved the adequacy of pensions. However, not matched by revenue measures, they have widened the deficit of the pension system. Reforms that increase the incentives to contribute to the pension system and thus revenue would improve the financial sustainability of the pension system and reduce fiscal risks.

Subject: Aging, Economic sectors, Expenditure, Exports, International organization, International trade, Labor, Monetary policy, Pension spending, Pensions, Population and demographics, Public enterprises

Keywords: Aging, Current ratio, EU country, Europe, Exports, Global, GVC Integration, GVC participation, IMF staff calculation, Pension spending, Pensions, Public enterprises, Return on assets

Publication Details

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