OECD: Pandemic impedes Bulgaria’s impressive economic growth

The Covid-19 pandemic has interrupted Bulgaria's impressive economic progress, according to the second economic review of our country, carried out by experts from the Organization for Economic Cooperation and Development (OECD).

The gap between the rich and the poor is widening in Bulgaria, as in many other countries, according to the draft report of the OECD. It points to the need for a better business environment, with less regulation and clearer legislation. Efforts to fight corruption and crime must be pursued, experts say.

Another important emphasis is on the need to improve working skills and carry out important reforms in education, as a support argument it is stated that Bulgarian students have an average overall score in the PISA study.

The Covid crisis has hit the labour market hard, especially men and young people, analysts say, pointing out that government programs to maintain employment rates have limited the negative effect of the crisis, but more efforts are needed to restore pre-crisis levels.

As regards economic development - the organisation expects Bulgarian economy to grow this year at 3.3 percent and unemployment to remain above 6 percent. Inflation will be 1.4 percent and the budget deficit 4.5 percent of the GDP. Innovation, transport, energy and digital infrastructure are key priorities for the development of the economy, which needs to switch to green technologies and give up high-carbon production facilities, the OECD experts conclude.