BULGARIA 2021 economic assessment.

Basic statistics of Bulgaria, 2019
Executive summary
	The COVID-19 pandemic has interrupted an impressive progress
	The business environment needs improving
	Reducing poverty and raising regional development require more reforms
1 Key Policy Insights
	The COVID-19 crisis has hit the economy
	The economy requires continued macroeconomic policy support
		Considerable uncertainty surrounds the recovery
	Fiscal space permits a large pandemic response
		Ensuring access to health care is a priority during the pandemic
		A wage subsidy scheme has prevented a large rise in unemployment
		Long-term public finances are sound but subject to uncertainties from ageing
	The currency board is a cornerstone for macroeconomic stability
	The financial sector has been fortified, but non-performing loans remain high
	Strengthening the recovery
		Making the most of the export sector
		Public investment should be increased
		Removing barriers to competition
		Decarbonising the economy
		Ageing demographics will influence future growth
	Ensuring equal opportunities for all
		Improving labour market policies for higher participation and better jobs
		Making the tax and benefit system work for all
	Promoting public integrity and succeeding in the fight against corruption
	References
2 Structural reforms to raise productivity and boost convergence
	Income convergence needs to accelerate
	Improving the regulatory framework for enterprise activity
		Reducing regulatory barriers to competition
		Decreasing the red tape required to set up a firm
		Facilitating firm exit and rehabilitation for viable enterprises
		Improving corporate governance of SOEs
		Continuing regulatory efforts to support competition
		Creating a level playing field for public contracting
	Increasing skills and innovation
		Increasing the availability of skilled workers is a key priority for enterprises
		Basic education is not providing a firm foundation for skills
		Vocational education and training could better meet labour market demands
		Adult learning is low
		Fostering return migration and skilled immigration
		Promoting innovation
		Supporting growth of the digital economy
	References
3 Reducing regional disparities for inclusive growth
	Cities are driving growth, while lagging regions are depopulating fast
	Supporting living standards in lagging regions
		Including the Roma population in the economy
		Ensuring equal access to public services
			Enhancing municipalities’ autonomy and capacity to improve service delivery
			Consolidating the healthcare sector to cover all
	Enabling reallocation and fostering regional growth
		Better infrastructure and housing to support mobility
			An ineffective housing market hampers mobility and well-being
		Realising the potential of the agricultural sector
		Reviving tourism for future regional growth
			The sharing economy is held back by stiff regulation
	References