We are entering the new year with budgetary and political uncertainty. There is still no cabinet and it is not known whether it will be formed. This has happened three times in the last four years. Let us recall that in 2022 we were again without a budget extension. We have been in this scenario. This budget extension law was submitted very late – on December 31, and it will probably be the first task of the deputies next week. This was commented by Petar Ganev from the Institute for Market Economics in the program “Crossroads” on NOVA.
„When we rotated the first two service cabinets and postponed the first budget, we said to ourselves that we were in some kind of unique situation that we had to get out of. This has been going on for three years now, we voted 7-8 times, we have been without a budget for the third year now. Apparently these limits of tolerance are quite stretchy. The accumulation of uncertainty can explode at one point. We have seen this in all budget crises. The accumulation in them is not linear – it does not accumulate little by little from 10 to 100% of GDP. There are moments when it simply explodes. I don't think we're that close to that point, but you could run into fiscal problems and lose control over things that at first glance seem to you to be just slightly worse," the expert warned.
In his words, the purely economic prospects for 2025 are not that bad.
All official forecasts indicate an acceleration in economic activity, slightly higher growth driven by consumption, since we have high employment. Although the growth rate is falling, it remains above 10%. We have increased demand for Bulgarian goods, Ganev predicts.