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🇧🇬 Bulgaria /Economy & Trade

The Economist: Bulgaria's Deficit to Remain Above EU Limit Until 2029

From Dnevnik · () Bulgarian

Translated from Bulgarian, summarized and contextualized by DistantNews.

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  • Bulgaria's budget deficit is projected to remain above the EU's 3% threshold until 2029, according to The Economist.
  • Government spending as a share of GDP is expected to increase and not return to 2025 levels by 2030.
  • The analysis suggests that the current government's fiscal policies will lead to persistent deficits throughout its term.

Bulgaria's national budget is set to remain in deficit beyond the European Union's stipulated limit of 3% of GDP until at least 2029, according to an analysis by The Economist.

The report indicates that throughout the entire term of the current government, led by Rumen Radev, the state budget will consistently show a deficit of at least 3%.

Furthermore, government expenditures, when measured as a proportion of the country's Gross Domestic Product (GDP), are not projected to decrease. Instead, they are expected to remain elevated, and by 2030, they will not revert to the levels observed in 2025. This suggests a trend of increasing public spending relative to the nation's economic output.

The analysis implies that the fiscal trajectory under the current administration will perpetuate deficits, challenging Bulgaria's adherence to EU fiscal rules and potentially impacting its economic stability.

DistantNews Editorial

Originally published by Dnevnik in Bulgarian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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