Balgarianovinite.com The International Monetary Fund (IMF) has slightly lowered its growth forecast for the Bulgarian economy by 0.3 percentage points to 2.8% amid the crisis triggered by the war in the Middle East, which in this regard has no greater impact than in other countries. However, the Fund has expressed concerns about the development of the economic environment, Helge Berger, Deputy Director in the IMF’s European Department, said in response to a question from BTA, highlighting the upward revision of the inflation forecast.
The revised inflation forecast for Bulgaria is about 0.5 percentage points higher than expected in October and stands at 3.8%.
Berger noted that the economy is facing strong domestic demand, rapidly growing consumption, a widening current account deficit, and continued expansionary fiscal policy, which he believes is not the right approach in a situation where prices are rising sharply.
In his view, one of the main challenges facing the future government will be to review fiscal policy with the aim of shifting from an expansionary to a more neutral stance.
This could be done, for example, by addressing the rapid growth of public sector wages and the automatic indexation of social benefits, but, of course, this is also a suitable moment to consider reforms that could support growth, given the lowered growth forecast, Berger said.
He added that there are possibilities to make effective use of EU funds by channelling them toward public investments. Berger recommended the development of a long-term programme for structural reforms, including in the areas of governance, investment in human capital, and education. Bulgaria’s New Government Faces Critical Task of Reassessing Fiscal Policy, IMF Official Recommends 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-04-17 15:29:00 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law