IMF Anxious About Current Situation in Bulgaria
Updated on: 27.09.2007, 10:46
Published on: 26.09.2007, 10:38
Foodstuff's prices in Bulgaria jump, informs Swiss media. International Monetary Fund (IMF) warns that the country needs straight foreign investments, reported from Deutsche Welle. According to economy growths levels, Bulgaria is in perfect shape, from years. But if we look better in the macroeconomic data we will see that appear bigger and bigger disproportions, which alarm the IMF.
Fund's representatives explain that two problematic tendencies in the state.
At first place is the sharply price jump and the second issue is the increased deficit in the current balance of payment. IMF that will send observers in Bulgaria in October, almost double its prognosis about local annual inflation from 4,5% to 8%.
In August the inflation growth reached 12%, which is the higher in EU. The development of prices that is out of control has not so political-economical reasons that inferior ones.
The heats and the floods this summer destroyed the crops in many places which automatically increased the food prices. IMF warns for temporarily shock of supply and need of extremely discipline.
The local representative of IMF said that direct foreign investments are needed, to be guarantee one stable economy policy.
In the first 7 months of 2007, the direct investments covered 88% from the deficit in the current balance of payment.