The main contribution to the increase in the International Monetary Fund's (IMF) estimates of Bulgaria's economic growth is from internal factors, said the Governor of the Bulgarian National Bank (BNB) Dimitar Radev in an interview with BTA during the annual meetings of the IMF and the World Bank in Washington.
The Fund has raised its forecasts for Bulgaria to 3 percent for 2025 and 3.1 percent next year compared to the rate of 2.8 percent in 2024, BTA recalls.
Our country has a stable banking system, low public debt and an active private sector. Bulgarian business remains a driver of growth - flexible, innovative and sustainable, Radev highlighted the main factors favoring economic dynamics.
At the same time, according to him, the expected acceleration of inflation (up to 3.6 percent this year and 3.4 percent in 2026 - editor's note) is temporary - a result of base effects and changes in regulated prices. He stressed that it is important that fiscal policy does not conflict with monetary policy, and if the balance is maintained, inflation will continue to calm down.
The sustainability of economic growth in conditions of high uncertainty and limited resources is the topic that mainly attracted attention during the talks between leading financiers from around the world, which took place this week in Washington, Dimitar Radev also pointed out.
Interest rates in most leading economies, including in the eurozone, are already in neutral or close to neutral territory, which suggests a more balanced monetary position. In contrast, fiscal space remains very limited. The general message is that stability requires more consistency and coordination between policies - both at the national and global levels, he noted.
According to him, Bulgaria remains among the countries with the lowest debt in the European Union, which is our country's main comparative advantage. At the same time, however, fiscal discipline is gradually loosening and the deficit is growing. The resilience built up over the years, especially in the period up to 2020, is about to be compromised and must be protected through a moderate and predictable budget policy, the central banker warned.
The process of Bulgaria's accession to the eurozone arouses natural interest among the participants in the forum, as Bulgaria has achieved the preservation of relative macroeconomic stability in a complex internal and external environment and this step is assessed as logical and as a serious success, but also as a test of the sustainability of policies, the BNB Governor shared his impressions. The eurozone is not an end goal, but a commitment - to predictability, institutional maturity and trust, he emphasized.