Despite the stability and economic achievements, Bulgaria will remain one of the poorest countries in Europe even after it joins the European Union.

This is one of the conclusions in an analysis of the International Monetary Fund (IMF) dedicated to the country’s economy, published on August 9.

Current account deficit features among the main problems in the report. The gap increased to nearly 14.6 per cent of the gross domestic product (GDP) in April, the report said. Such levels are considered relatively high and the IMF advises change in the country’s economic policies. In Bulgaria’s case, high current account deficit did not have to necessarily result in financial crisis as some analysts predicted, the report said.

Bulgarian economists needed to keep in mind that high current account deficit in combination with high foreign debt could make the national economy vulnerable. Strict economic policies, aimed at the creation and maintenance of fiscal reserve could counter such development, the report said.

Bulgaria also has to attempt to near the European standards of living and income levels, which, according to the IMF, will be a tough task, especially if the country is compared to the most advanced members of the EU. Bulgaria has a very low level of income, for starter. Despite its economic success in the past 10 years, the country remains one of the poorest in Eastern Europe and in the entire continent.

Catching up with the advanced European nations will be slow and will be hampered by factors like the sharply declining number of the actively employed population of the country. In the past several years, the number of people in active age has decreased by 20 per cent.

Bulgaria will need decades to achieve the average standard of living Western Europe has at this moment, which means that the catching up will be only  comparative.