Finance Minister: Bulgaria Economy to Shrink by 2-3%, No Foreign Aid Needed

Business » FINANCE | May 22, 2009, Friday // 18:24
Bulgaria: Finance Minister: Bulgaria Economy to Shrink by 2-3%, No Foreign Aid Needed Bulgaria's Finance Minister Oresharski is positive the country needs no foreign financial aid. Photo by BGNES

Bulgaria's Finance Minister, Plamen Oresharski, predicted Friday that the Bulgarian economy would shrink by between 2% and 3% in 2009.

Oresharski underscored the high level of uncertainty, which made him talk in terms of approximate numbers.

In his words, the first quarter of 2009 had turned out to be even worse than the predictions.

Yet, during his visit to the northern city of Pleven Friday, Oresharski stressed that despite the decline, Bulgaria was doing relatively well in the global financial crisis, compared to most European countries.

The Minister also said that even if the second and third quarters of 2009 weren't much better than the first quarter, at least it was for sure they would not be worse thanks to seasonal employment and other specifically Bulgarian factors.

"If you go ten years back in time, you'll see that the first quarter has always been the worst for the Bulgarian economy", Oresharski said

"At the present moment, the situation remains under peaceful which gives us confidence, and an answer to a question which is often discussed in the public sphere, and, I believe, with political motivation, - whether we should be seeking foreign aid or not.

Observing all indicators of our financial and monetary system, at the present moment we are not concerned that any crisis funding is necessary. But I would recommend to any analyst watching these indicators really closely, because as we saw in the USA in 2008, they can change very quickly", Oresharski explained.

According to the Minister, Bulgaria's fiscal reserves were also sufficient to give confidence that they can meet even more unfavorable developments. He added that the lowest level of state revenue was recorded in March 2009, which corresponded with the predictions that March would be the worst month for the global economy.

Oresharski also stated that the income of Bulgaria's state budget, which has so far been lower than envisaged, was within the ranges previously discussed, and the fact that the government had no need and no intention to review the state budget, was positive in itself.

The Minister did say, however, there was a possibility that some additional budgetary restrictions might have to instituted in order to complete 2009 successfully in financial terms.

 

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Finance » Be a reporter: Write and send your article
Tags: finance minister, Plamen Oresharski, Global Financial Crisis, economy, recession, fiscal reserve, state budget

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria