IMF Staff Country Reports

Bulgaria: 2019 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Bulgaria

March 22, 2019

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Bulgaria: 2019 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Bulgaria, (USA: International Monetary Fund, 2019) accessed November 21, 2024

Summary

This Article IV Consultation highlights that economic performance remains robust but risks to the outlook are tilted to the downside amid slowing external demand. Sound macroeconomic policies notwithstanding, Bulgaria faces a sizable income gap vis-à-vis the EU average and unfavorable demographic prospects. The main policy challenge is to raise growth potential, which calls for broad-based structural reforms to improve public goods provision and institutions. The Article IV discussions focused on medium-term reforms to improve public goods provision and raise potential growth and on near-term policies to enhance financial sector stability. Fiscal policy is broadly appropriate, but the efficiency of spending and revenue administration could be further improved. Stronger public investment management would improve investment efficiency and transparency. Better performance of state-owned enterprises would help raise growth potential and mitigate fiscal risks. Bank profits have risen and non-performing loans (NPLs) have continued to decline, although they are still high among EU countries. The central bank should ensure that banks with high NPLs have adequate capital buffers.

Subject: Capital spending, Expenditure, Labor, Public debt, Revenue administration, Wages

Keywords: Authority, Banking sector supervision, Capital spending, CR, Global, IMF staff estimate, IMF TA, ISCR, Potential GDP, Preliminary data, Revised Staff's projection, Staff's projection, Wages

Publication Details

  • Pages:

    65

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2019/083

  • Stock No:

    1BGREA2019001

  • ISBN:

    9781498304665

  • ISSN:

    1934-7685

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