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World Bank: The demographic crisis is Bulgaria’s most serious problem

Low incomes are the main challenge according to Finance Minister Djankov

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  • Автор: klassa.bg
  • Date: 15.11.2012
  • Views: 25302

The positions of the World Bank and Bulgarian Finance Minister Simeon Djankov on the main challenges facing Bulgaria and its economy diverged, posted Investor.bg.

During an economic forum organised by the World Bank, Peter Harrold, Country Director for Central Europe and the Baltics, pointed out that demographic problems are the most serious challenge which Bulgaria faces. According to Harrold, despite the significant achievements over the last 20 years, Bulgaria is facing an increasingly unstable external situation and has to cope with the worsening business environment, increase investments in innovation, develop a ‘greener’ economy and improve energy efficiency.

According to Finance Minister Simeon Djankov, however, low incomes are the major problem. He ranked second the country’s demographic problems caused by emigration and the low birth rate, and the low energy efficiency and energy intensity of our economy - third.

Peter Harrold stated that, since Bulgaria’s accession to the European Union (EU), it has become the ‘New Europe country, which has achieved the fastest rate of convergence with ‘Old Europe’, compared to other Central and Eastern European countries which joined the EU in 2004 and 2007. Nevertheless, Bulgaria remains the poorest country in the EU, with the lowest share of gross domestic product (GDP) per capita and the lowest incomes of the population, compared to the average European level. “In terms of fiscal policy, however, our country shows considerably better results, compared to the other EU states, since it was able to accumulate reserves during the boom and use these wisely over the past years of economic crisis,” he commented.

Comments (5)

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