Bulgaria is well prepared "to head into the cold waters of the Economic Crisis," but there are some things that must be worked on before the country reaches the big freeze later this year, according to Nikolay Vasilev, the Minister of State Administration and Administrative Reform.

Vasilev stated Tuesday he believed that there will certainly be a recession in Bulgaria but it will hopefully be "softly felt and short", reported the Pari Daily.

The minister's theory is based on his positive views regarding the record fiscal and currency reserves, the large budget surplus and a relatively low amount of public debt. He does, however, warn that the huge deficit in the current account of the balance of payments - some 24% of the GDP of Bulgaria in 2008, could cause very serious problems for the Bulgarian economy.

Vasilev noted that the Real Estate and Luxury sectors of the economy have already been affected by the ongoing worldwide downturn; he also expects other sectors to be hit in the near future. On an upbeat note to end though, the minister went on to say that "life has not stopped; people still eat, get dressed and read news sites".

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