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Datsov: High inflation and large deficit will be the problems of 2025

The deficit will be at least about 6 percent

Jan 6, 2025 20:36 59

Datsov: High inflation and large deficit will be the problems of 2025  - 1

The increase in prices of basic goods and services at the beginning of 2025 will lead to a new increase in inflation, which threatens Bulgaria's entry into the eurozone. This was predicted by leading economists.

According to Lyubomir Datsov from the Fiscal Council of Bulgaria, the beginning of the year begins with an increase in prices, which have a direct impact on the consumer basket. "This year started quite sharply with an increase in certain prices, which have a direct impact on inflation", Datsov said on BNT.

Adrian Nikolov from the Institute for Market Economics explained that the country has a window of two to three months to request extraordinary reports from the European Commission and the European Central Bank. "The country will most likely move away from the inflation criterion in May or June", the expert predicts.

In addition to inflation, experts also see a risk in the implementation of the budget deficit criterion. "In my opinion, if this budget is adopted and the expenditure part is implemented, the deficit will be at least about 6 percent," warned Lyubomir Datsov.

Additional tension is also created by pro-inflation factors in the 2025 budget, including the increase in the minimum wage and the increase in salaries in the public sector.