Bulgaria should work to accelerate income growth. This is the conclusion of the International Monetary Fund’s Executive Board.

The Fund has noted the need for continued attention to fiscal challenges related to population aging. Bulgaria’s per capita income is only half of the EU average and income inequality is higher than EU average, the IMF pointed out

Growth is projected to moderate to 2¾ percent over the medium, reflecting capacity constraints and unfavorable demographics. Public debt is low, but contingent liabilities and long-term fiscal pressures from demographic challenges could pose fiscal risks over the long run, the IMF assessment reads.

The IMF recommends more investments in healthcare and education noting that often the skills of the able-bodied population fail to respond to the needs of the labor market.