wiiw Forecast Reports

BULGARIA: Political mess drives the economy towards an unsustainable fiscal course


Rumen Dobrinsky

in: Sailing Through Rough Waters
wiiw Forecast Report No. Spring 2023, April 2023 , pp. 48-51

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The early general election held in April 2023 – the fifth in two years – has delivered no clear winner. The absence of a stable government over the past couple of years has resulted in fiscal destabilisation and delays to the country’s planned accession to the euro area. While GDP growth in 2022 was above expectations (thanks to a surge in exports), in 2023 it will slow to 1.7%. Rebalancing the public finances requires a radical shift in fiscal policies – something that may be problematic given the current political environment.


Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database

Countries covered: Bulgaria