Fitch Ratings has raised the outlook on Bulgaria's Long-Term Foreign-Currency Issuer Default Rating (IDR) from stable to positive. The current assessment stems from lower macroeconomic risks associated with the Covid-19 crisis, the continuing interest in joining the euro zone, as well as the support from EU funds.
In the coming years, Bulgaria is expected to be one of the main beneficiaries of EU financing, including 16.6 billion euros (27% of GDP in 2020) under the multi-annual financial framework (2021-2027) and 7.5 billion euros (12% of GDP for 2020) in the form of EU grants under the NGEU mechanism. According to Fitch Ratings, this would increase economic growth from projected 3% in 2021 to 4-5% in the period 2022-2025.
In the long run, however, Fitch also points out a number of unfavorable factors, including the demographic structure of the population.
If the political crisis continues, the lost benefits will reach a threshold after which the Bulgarian business will begin to lose competitiveness due to growing deficits in education, healthcare, infrastructure, regional development and demographics...
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In 2025, the National Health Insurance Fund will be able to spend 1.2 billion leva (EUR 613 million) more on insured individuals, the draft budget of its..
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The Bulgarian-Moldovan Chamber of Commerce and Industry held a meeting with leading specialists from the energy sector of Bulgaria and Moldova. The..
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