Bulgaria and other countries in the region posted steady economic growth last year, with the forecast remaining at about 3% annually for the next two years, Deputy Director of the International Monetary Fund’s European Department Helge Berger said on Friday. However, Berger noted that this is not enough to sustain convergence with Western Europe.
The region’s economy, including Bulgaria, is growing more quickly than some advanced European economies, but Berger said long-term growth is insufficient to keep up with the pace of catching up to Western European levels.
He identified two main forces shaping Bulgaria’s economic performance. On the one hand, domestic demand is very strong, linked in Bulgaria’s case to the expected adoption of the euro and falling interest rates, as well as solid fiscal policy and credit developments supporting local demand. On the other hand, Berger pointed to wage growth being “rather exuberant in many countries of the region, which presses inflation up,” and called for careful monitoring of this trend.
External demand has been weaker, as elsewhere in Europe, affecting short-term growth.
Berger set out two key concerns for Bulgaria and the wider region. The first is inflationary pressure: “If wage growth is high, inflation tends to be high, so monetary policy will need to be very careful,” Berger said, noting that in Bulgaria’s case “this will be in the good hands of the ECB as of January.” For other countries, he added, monetary policy “is an area that warrants attention.”
Berger said that fiscal policy is just as important, particularly for Bulgaria: “We need non-expansionary policies; we need policies that lower debt where it is increasing; and we need fiscal policy that does not fuel wage growth unnecessarily, that would help the macro economy.”
He also advised countries across the region to focus on their structural reform agendas domestically, while EU-level reforms and deepening the Single Market are crucial for both current and future euro area members like Bulgaria. The Capital Markets Union is “particularly important, because investment is one area where the whole CESEE region, Bulgaria included, could benefit; productivity growth will be higher if investment can be stronger,” Berger said. Economic Growth in Bulgaria Remains Steady but Convergence Lags Behind, IMF Warns THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2025-10-17 18:26:40 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
