GenZ, good to know what is next. According to the forecast the growth of 1.8% will pick up this year thanks to renewed demand from the main trading partners of Bulgaria. This is one of the conclusions of the International Monetary Fund (IMF) report.

Exports are expected to rise due to recovered demand and public investment will be supported by EU funds.

The alarming data

is that the inflation in our country remains higher than in other European countries. This is despite increases in wages and pensions, and although the organization expects inflation to fall due to falling global food and energy prices.

It is time for reforms

The board of the Fund put emphasis on the importance of reforms in Bulgaria to support economic growth, reduce income differences with other EU countries and strengthen the country's sustainability. The authorities are encouraged to work hard to adopt the euro within the expected timeframe, although Bulgaria currently does not yet meet the inflation criteria needed to join the eurozone.

The report reads that the fiscal policy of Bulgaria is facing difficulties and that a balance needs to be achieved in the short term to ensure a reduction in inflation and maintain a reasonable fiscal policy, given the uncertain environment and domestic fiscal risks.

The authors of the document acknowledge the need for significant investment and social support, but again emphasize the need for extensive fiscal reforms.

Like the Bulgarian National Bank's concern about the unstoppable growth in mortgage lending, the IMF also calls for caution and vigilance.

Among the others recommendations, which have become generally given by the fund to Bulgaria, are:

• to increase productivity

• to increase local and foreign investments

• to improve its competitiveness

• to reduce corruption

• to implement the measures under the recovery plan in a timely manner, etc.