Bulgaria no longer has excessive macroeconomic imbalances as observed in the period 2015-2017, according to the 2018 report about the country released today in the context of the European Semester for economic, fiscal and social policy coordination, the European Commission Representation in Bulgaria said. Bulgaria is said to have made some progress in implementing the specific recommendations from 2017.
The country still has imbalances, mostly related to the financial sector and corporate indebtedness. The stability of the financial sector continues to improve despite the remaining weaknesses. The economic growth remains strong, while the labour market is recovering.
The favourable economic situation in Bulgaria could help implement the measures aimed at overcoming the imbalances. The strong economic growth and solid fiscal position are an opportunity for structural reforms to speed up convergence with the rest of the EU and permanently reduce the high levels of poverty and inequality, according to the report.