Kristalina Georgieva Secures Second Term as IMF Chief
Bulgaria's Kristalina Georgieva has been appointed for a second term at the helm of the International Monetary Fund (IMF)
The International Monetary Fund expects the Bulgarian economy to shrink by 7% in 2009 and another 2,5% the next year, the head of the global lender mission to Bulgaria said.
Bas Bakker told Deutsche Welle that the latest forecasts beat considerably the figures previously published and come amid new analyses for the world economy.
The IMF now forecasts global growth of 2.5% next year, up from 1.9% in April, led by strong growth in China and India, a rebound in Japan and positive but sub-trend growth in the US.
It upgraded its forecasts for Europe too, but still expects the eurozone to contract 0.3% next year, with Germany declining 0.6%.
Bulgaria, the European Union's poorest member, has already entered recession with its economy shrinking 5% from January to March and contracting 1.6% in the fourth quarter on a quarterly basis.
Bulgaria's gross domestic product (GDP) contracted by 3,5% in the first quarter of 2009 on an annual basis, the first time that the country's GDP marked a drop year-on-year since the financial and economic crisis in 1997.
Bulgaria currently operates in currency board regime and the lev is pegged to the euro.
The opposition party of Sofia Mayor Boyko Borisov, which won by far the most votes in the recent general elections, advocates taking a loan from the IMF and World Bank, similar to those given to Latvia, Romania, Hungary and Ukraine, to support Bulgaria's currency peg to the euro, a move the defeated Socialist-led government rejected.
Economists have warned that Bulgaria's next government faces a deepening recession and an imminent loan agreement with the International Monetary Fund.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
A recent national survey conducted by the Market Links agency reveals that nearly half of Bulgarians, constituting 47% of respondents, hold reservations regarding the anticipated benefits of Bulgaria's adoption of the euro
Bulgaria's aspirations to become the 21st member of the Eurozone have sparked discussions regarding the country's economic readiness, as well as its political and institutional preparedness
The European Central Bank (ECB) has weighed in on Bulgaria's draft Law on the adoption of the euro, signaling the need for revisions to ensure alignment with European regulations
A wave of misinformation regarding Croatia's inflation rates has sparked concerns about the potential consequences of adopting the euro in Bulgaria
Artificial intelligence is changing the world’s economic and political landscapes, pushing every country to increase their AI investments.
As the clock ticks down to midnight tonight, Bulgarians are reminded that April 30th marks the final day for filing their 2023 personal income tax returns
Sofia Airport's Terminal 3 Construction Set to Begin in Early 2026
COVID-19 Impact: Bulgaria's Grim Milestone as Highest Death Rate in EU