IMF Sees Bulgaria's GDP at 2.5% Next Year, Urges Govt To Improve Revenues
Bulgaria's economy is set to expand by 2.5% next year, after posting a growth in the range between zero and 0.4% in 2010, the International Monetary Fund said on Monday.
An IMF mission, which ended its visit to Bulgaria on Monday, urged the government to improve revenues in order to meet its fiscal targets. "In 2011, the recovery should gain traction. Real GDP growth is forecast to rise to 2-2.5% (year-on-year) as the recovery broadens to encompass domestic demand," the head of the IMF mission, Catriona Purfield, said in a statement.
"Bulgaria's prudent macroeconomic framework, anchored on the currency board, has been crucial in preserving stability through the global economic crisis. The substantial buffers accumulated in the fiscal and financial sectors during the boom provided important cushions through the downturn. As the economy recovers, attention now should turn to fiscal consolidation and sustaining a strong banking system to realize the long-standing policy objective of ERM II membership and eventual euro adoption."