In the heart of the American capital, Washington, where the annual meetings of the International Monetary Fund (IMF) and the World Bank were held this week, the Bulgarian representative Dimitar Radev, Governor of the Bulgarian National Bank (BNB), shed light on the current state of the Bulgarian economy and its prospects. In an interview for BTA, Radev shared his observations and assessments of the development of our country in the context of global economic challenges.
The main topics that dominated the discussions at the meetings were related to the sustainability of economic growth in conditions of high uncertainty and limited resources. The atmosphere in Washington was charged with tension, as leading financiers from around the world discussed strategies for dealing with these challenges.
The IMF has raised its forecasts for Bulgaria's economic growth. The assessments predict growth of 3 percent in 2025 and 3.1 percent in the following year, compared to 2.8 percent in the current year, 2024. When asked about the factors behind these optimistic forecasts, Radev emphasized that the main drivers of growth are internal. He pointed to the stable banking system, low public debt, and active private sector as key factors for the favorable economic dynamics. Bulgarian business, according to Radev, remains a major force that drives the economy forward. Characterized as flexible, innovative and sustainable, it represents a significant factor for the development of the country.
"This is partly a reflection of the relatively better global economic environment, but the main contribution is internal," Radev emphasized.
Despite the optimistic forecasts, Radev also touched on the issue of inflation, which is expected to accelerate in the short term. According to him, however, this acceleration will be temporary, as a result of base effects and changes in regulated prices. He stressed the importance of a coordinated fiscal policy that does not conflict with monetary policy.
In the context of the general discussions that took place in Washington, attention was paid to the limited fiscal space in many countries. Radev pointed out that Bulgaria remains among the countries with the lowest debt in the European Union. This is the main advantage of our country. At the same time, however, he warned about the gradual relaxation of fiscal discipline and the increase of the deficit. "The resilience accumulated over the years, especially in the period up to 2020, is about to be compromised," the central banker warned. He stressed the need for a moderate and predictable budget policy.
The process of Bulgaria's accession to the Eurozone attracted great interest at the forum. Radev shared that this process is viewed by international financial circles as a logical step and a serious success, but also as a test of the sustainability of policies. "The Eurozone is not an end goal, but a commitment – to predictability, institutional maturity and trust," he stressed.
At the meetings in Washington, the Governor of the BNB, Dimitar Radev, presented the prospects for the Bulgarian economy, pointing out both its strengths and the challenges it faces. His analyses offer valuable information for the future of the country in the context of global economic trends.