Bulgaria: 2008 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Bulgaria
IMF Staff Country Reports, March 16, 2009
Source details
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- Bulgaria: 2008 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Bulgaria
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Bibliographic details
- Published: March 16, 2009
- Series: IMF Staff Country Reports
Summary and key findings
- The 2008 Article IV Consultation finds that Bulgaria has been hit by the global financial crisis.
- There are clear signs that the country’s capital inflows-driven boom has come to an end and that the real economy is slowing down.
- Executive Directors commended the Bulgarian authorities for prudent policies that have built strong balance sheets in the public sector.
- Directors welcomed the authorities’ commitment to maintaining prudent fiscal policies, which will provide crucial support for the currency board arrangement.
Economic context and shocks
- The report emphasizes the impact of the global financial crisis on Bulgaria.
- The prior expansion was driven by capital inflows; that boom is reported to have ended.
- The real economy is described as slowing down in the wake of these external shocks.
Policy assessment and implications
- Public sector balance sheets are characterized as strong due to prior prudent policies.
- Maintaining prudent fiscal policies is presented as crucial to support the currency board arrangement.
- Executive Directors’ assessment is generally commending of the authorities’ policy stance in the face of the crisis.
Subjects and keywords
- Subject: Balance of payments, Banking, Capital inflows, Currencies, Current account, Current account deficits, External debt, Fiscal stance, Money
- Keywords: Capital inflows, CR, Currencies, Current account, Current account deficits, Eastern Europe, estimate, Europe, flash estimate, GDP projection, Global, ISCR, net capital capital inflow, private sector credit growth, reserve account, slowdown, Southern Europe, stock market index, Western Europe
Source: IMF staff report — Bulgaria: 2008 Article IV Consultation (Staff Report; Staff Statement; Public Information Notice; Statement by the Executive Director for Bulgaria), March 16, 2009.