SOFIA (Bulgaria), December 15 (SeeNews) – Bulgaria's economic growth is expected to accelerate to 4.4% in 2018 from 4.0% expected this year, boosted by private investments and a pickup in infrastructure construction, according to the chief economist of UniCredit Bulbank, part of Italy's UniCredit Group.
However, the country's economic growth does not lead to poverty reduction and economic inequality remains high, Christofor Pavlov said during a conference in Sofia organised by the Bulgarian publishers of The Economist magazine.
Some important structural measures such as the introduction of a road toll system and a more efficient use of resources in healthcare is being delayed, he added.
Going forward, one of the main risk facing the Bulgarian economy is losing focus on exports which could lead to overheating, according to Pavlov. If housing prices in Sofia continue to rise by two digits, prices of other goods and services too could appreciate, curbing competitiveness, he said.
To offset these risks, the government could turn to budgets envisaging 2%/GDP deficit which would open opportunities for higher expenditures in healthcare and education sectors, help reduce the gap in incomes and and improve the quality of the workforce, Pavlov commented.