Despite the stability and economic achievements, Bulgaria was going to remain one of the poorest countries in Europe even after it joined the EU, analysis of the International Monetary Fund (IMF) dedicated to the country’s economy said.
Current account deficit featured among the main problems in the report, mediapool.bg reported. Bulgaria also had to attempt to near the European standards of living and income levels.
The current account deficit increased to nearly 14.6 per cent of the GDP in April, the report said. Such levels were considered relatively high and the IMF advised 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, mediapool.bg reported.
