02.10.2012

The International Monetary Fund projects an economic growth of 1% for 2012 and 1.5% for 2013 for Bulgaria. This was said by Mrs. Catriona Purfield, IMF Article IV Mission Head for Bulgaria, at the wrap-up meeting in the Ministry of Finance. The experts' expectations are based on the higher domestic demand and the substantially improved Bulgarian exports. There is no change in the IMF projections for a budget deficit of 1.3% and an average inflation rate of 2.6% for 2012.

According to the IMF experts, the prudent and stable fiscal policies that are pursued by the Bulgarian government and build investor confidence should be linked to the economic growth as well. The key drivers according to Mrs. Purfield are investment in infrastructure projects and absorption of EU funds.

The IMF experts also commented on the need for amendments to insolvency legislation. Mrs. Purfield suggested ending backdating of insolvencies, which would improve the business environment significantly and would lead to greater predictability when signing private contracts.