The International Monetary Fund (IMF) revised upward its expectations for Bulgarian economy growth in 2017. In the published report on global economic prospects, the Fund’s experts predict that in 2017 the gross domestic product (GDP) of the country will increase by 3.6% and in 2018 growth will slow to 3.2%. The Bulgarian economy growth is significant compared to the previous spring report, representing an increase of 0.7 and 0.3 percentage points respectively.
Overall, according to the experts of the fund, the economic recovery globally accelerates and the picture is much different than last year, when the world economy was limited, and the markets in continuous turbulence.
Though accelerated, the economic recovery is still incomplete, according to the IMF report. There are several reasons, among them the uneven pace among countries. Some emerging economies, exporters of raw materials, especially energy sources, are still being tested. In the Middle East, Africa and South America, there are civil and political riots, which slows the recovery.
Differences in recovery are an incentive for politicians to act. The structural reforms are easy at times when the economy is strong. Countries need changes that are different for each of them but necessary to increase their economic sustainability.
For countries that have achieved full employment, for example, it is time to think about fiscal consolidation and reducing levels of public debt. They have to build up buffers for the next recession. Countries that still have a “fiscal space” can count on increasing investment in infrastructure and training.