## Bulgaria: 2019 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Bulgaria

_IMF Staff Country Reports, March 22, 2019_

## Source details

**Canonical URL:** [Bulgaria: 2019 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Bulgaria](https://www.imf.org/en/publications/cr/issues/2019/03/22/bulgaria-2019-article-iv-consultation-press-release-staff-report-staff-supplement-and-46702)

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## Bibliographic details
- Published: March 22, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498304665.002

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### Summary
- Economic performance remains robust but risks to the outlook are tilted to the downside amid slowing external demand.
- Bulgaria faces a sizable income gap vis-à-vis the EU average and unfavorable demographic prospects.
- Main policy challenge: raise growth potential through broad-based structural reforms to improve public goods provision and institutions.
- Article IV discussions focused on medium-term reforms to improve public goods provision and raise potential growth, and on near-term policies to enhance financial sector stability.

### Major findings
- Fiscal policy is broadly appropriate, but the efficiency of spending and revenue administration could be further improved.
- Stronger public investment management would improve investment efficiency and transparency.
- Better performance of state-owned enterprises would help raise growth potential and mitigate fiscal risks.
- Bank profits have risen and non-performing loans (NPLs) have continued to decline, although they remain high among EU countries.
- The central bank should ensure that banks with high NPLs have adequate capital buffers.

### Policy recommendations
- Implement broad-based structural reforms to improve public goods provision and institutions to raise potential growth.
- Improve efficiency of spending and revenue administration.
- Strengthen public investment management to enhance investment efficiency and transparency.
- Improve performance and governance of state-owned enterprises to raise growth potential and reduce fiscal risks.
- Enhance financial sector stability by ensuring adequate capital buffers for banks with high NPLs.

### Financial sector observations
- Bank profits: have risen.
- Non-performing loans (NPLs): have continued to decline but are still high among EU countries.
- Central bank role: ensure banks with high NPLs hold adequate capital buffers.

### Key statistics and publication metadata
- Date: March 22, 2019
- Pages: 65
- Volume: 2019
- Issue: 083
- Series: Country Report No. 2019/083
- Stock No: 1BGREA2019001
- DOI: https://doi.org/10.5089/9781498304665.002
- ISBN: 9781498304665
- ISSN: 1934-7685
- Subject tags: Capital spending, Expenditure, Labor, Public debt, Revenue administration, Wages
- Keywords: authority, banking sector supervision, Capital spending, CR, Global, IMF staff estimate, IMF TA, ISCR, potential GDP, preliminary data, Revised Staff's projection, staff's projection, Wages

*International Monetary Fund. Bulgaria: 2019 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Bulgaria (IMF Staff Country Reports 2019, 083), March 22, 2019.*

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_Source: https://www.imf.org/en/publications/cr/issues/2019/03/22/bulgaria-2019-article-iv-consultation-press-release-staff-report-staff-supplement-and-46702_