Bulgarian Politics Unlikely To Hit Strong Public Finances – Fitch
Recent political developments in Bulgaria need not threaten the country's public finances, which are likely to remain a ratings strength, Fitch Ratings said.
Last week, some twenty days after street protests toppled the centre-right government of Boiko Borisov, president Rosen Plevneliev appointed a caretaker government to run the country until snap elections are held on May 12.
The broad political commitment to fiscal prudence in recent years and the consensus on adhering to European Union guidance on the fiscal framework were one of the assumptions underpinning the agency's affirmation of Bulgaria's ‘BBB-' rating with stable outlook last summer, and this assumption still holds, Fitch Ratings said in a statement.
"The healthy state of Bulgaria's public finances before the financial crisis, its low public debt, the success of its recent consolidation efforts [..], even in the face of weak domestic demand, gives the sovereign some fiscal space to accommodate spending to alleviate social pressures," the agency added.
Fitch forecast economic growth of a real 1.9% of the gross domestic product (GDP) for this year, but added that low GDP per capita and low trend GDP growth are the main constraints on the country’s ratings.
Fitch forecast economic growth of a real 1.9% of the gross domestic product (GDP) for this year, but added that low GDP per capita and low trend GDP growth are the main constraints on the country's ratings.