Despite all the crises and inflation, BulgariaThe economy will grow by almost 4% this year. Our country has done its homework well and is preparing to join the euro area. There is no need for hyperinflation.
This was confirmed by the permanent representative of BNT World bank in Bulgaria Fabrizio Zarcone.
“A lot has happened in terms of inflation and gas growth. The latest package of BGN 1.5 billion will definitely help businesses. There is more that can be done. Some time ago we did World bank noted that the answer from Bulgaria was pretty conservative about the COVID-19 crisis. The expansion of the measures was not enough. There was enough space and the opportunity to develop your support “, he said.
According to him, one of the support measures is the World bank is the direct support of poor and marginalized people.
“You felt the consequences of COVID-19 and the rise in prices the most. We are open to cooperation with technical assistance and, if necessary, even financially. ” According to him, “In the 2022 budget, it is good to promise sustainable public investments to create jobs” explained the representative of World bank in Bulgaria.
Regarding business aid, Zarcone stated that aid should and can be increased: “The cost of individual consumers needs to be met, but companies provide jobs for these people, so help needs to be provided. Now is the time not to be conservative.”
According to Fabrizio Zarcone, Bulgaria‘s actual entry into the Eurozone wouldn’t cause any tremors because the currency board did its job. He stressed that it should not be forgotten that the country is the poorest country in the European Union and accounts for 55% of the average gross domestic product of the member states.
“The inequalities are staggering and that is unacceptable to the Union. Structural reforms must be forced and funds must be made available.” he said.
In his opinion, we should look out for two things. “First with the pandemic. We should not forget that Bulgaria is the least vaccinated country in the world when we compare it to developed countries. The second is inflation. inflation is a big ugly beast, difficult to control, especially in a small and open economy like Bulgaria It’s a very important factor. The truth is, if there is no monetary policy option, there is not much left to do. “ he said.
“The only thing Bulgaria can do is alleviate the symptoms of inflation, “ said Zarcone.
However, concerns about inflation by doing Eurozone remain. There are currently no signs of particularly worrying processes, but we have to be prepared, said the representative of the World bank in our country.
What Bulgaria can take steps to improve its financial stability in the long run to become an energy independent country. This will prevent the sharp rise in gas prices, added Zarcone: “If there are more gas suppliers, for example, prices will go down. So far the country has only two suppliers.”
The partnership between the World bank and Bulgaria In recent years it has not been as good as it could be, concluded the WB representative in Bulgaria.
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