Inflation and the implemented policy in terms of income, inconsistent with the real budgetary possibilities, can postpone the membership of our country in the Eurozone after 2025, according to the Annual report on the economy of Bulgaria, prepared by the Institute for Economic Research of the Bulgarian Academy of Sciences (BAS ).
According to the analysis, economic growth slows to 1.8% in 2023, investment activity remains weak, and annual inflation stands at 5 percent.
Annual inflation in Bulgaria is slowing down significantly - to 5% at the end of 2023, but the financial policy and the policy of increasing incomes continue to exert pro-inflationary pressure, the report states.
According to BAS economists, although the lower rates of excise taxes and VAT on some energy and food products has an anti-inflationary effect, the increase in social payments and the increase in wages leads to an increase in consumption, and hence to inflation.< /p>
Thus, the implementation of the Maastricht criterion for inflation emerges as the biggest challenge this year and casts doubt on the membership of the eurozone in the set deadline - 2025.
Another of the problems that economists point to is the slowdown in economic growth due to weaker external demand, increased interest rates in the Eurozone and continued price pressure.
Consumption is growing under the influence of a stable labor market, slowing inflation and active credit activity.
According to forecasts, external demand will remain relatively low and the balance of payments will deteriorate throughout the period from 2024 to 2026.
Inflation will gradually decrease, but will be higher than usual in the previous decade.