Bulgaria’s convergence towards more advanced economies has continued but at a slower pace. Soaring energy and food prices have pushed up inflation to its highest levels in decades. However, support packages and strong momentum in wages and pensions have stabilised purchasing power. With the currency board arrangement, the onus to decrease short-term inflationary pressures is on fiscal policy. Fiscal discipline has resulted in low public debt, but growing spending pressures related to ageing, infrastructure and skills will need to be financed by greater tax collection efficiency and higher environmental taxes.
SPECIAL FEATURE: BETTER JOBS AND INCOMES
