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Low debt, Euro aspiration and EU membership are the positive factors in Moody's assessment of Bulgaria

published on 7/30/24 12:30 PM

Moody's expects Bulgaria to join the Eurozone no later than the beginning of 2026. According to the rating agency, the growth of the Bulgarian economy in 2024 will be 2.9%. The ongoing domestic political crisis and the likelihood of new early elections are highlighted as undermining the effectiveness of institutions "due to the structural nature of the political crisis".

Efforts to introduce the single currency is the factor with a positive effect on the country's credit profile, the other two factors of stability are EU membership and the low level of public debt. "The very aspiration to the euro area has already contributed to developing institutional and governance strength," the analysis adds.

"The fight against corruption remains a significant challenge and amplifies the negative effect of structural deficiencies of the economy such as an ageing population and weak infrastructure," the interim assessment added.

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Radio Bulgaria Economy credit rating agency euro Moody's