Having achieved higher-than-expected GDP growth in 2019., Bulgaria's economy, along with other EU countries, will enter a recession this year due to the negative impact of coronavirus and its bearing on exports and domestic activity. GDP is expected to shrink by 3.7% in 2020, according to the World Bank Spring Economic Outlook for Europe and Central Asia regions.
In addition to the forecast, the economic report calls for strong policy measures that prioritize investment in health systems and provide protection for the population, especially the most vulnerable, to mitigate the impact of the pandemic in Europe and Central Asia.
The document states that the economic impact projections of COVID-19 are based on significant uncertainty. The scenarios suggest that the region will fall into recession in 2020, with the economic downturn between -4.4 and -2.8% due to the effects of the coronavirus, before recovering again in 2021, as a result of the measures taken, the phased recovery of global commodity prices and the intensification of trade. The forecast for Bulgaria for 2021 is an increase of up to 3.9%.
"During these extremely difficult times, it is imperative that politicians act decisively," said Cyril Muller, vice president of the World Bank for Europe and Central Asia. "This means swift measures to strengthen health systems and social safety nets while maintaining the private sector and supporting financial stability and confidence – all of these are crucial to protecting people's lives," Muller said.
According to Fabrizio Zarcone, Permanent Representative of the World Bank to Bulgaria, the Czech Republic and Slovakia, "it is now more than ever necessary to pay special attention to the poor, as they are the most vulnerable population group in health crises and they are more likely to be the first to suffer income loss as a result of quarantine and blocked economic activity in the country."
The report calls upon measures to support vulnerable groups and sectors, including financial assistance or health subsidies, as well as temporary loans and business tax exemptions that will help reduce the economic downturn and keep jobs.
The World Bank is taking large-scale and rapid action to help developing countries strengthen their response to the pandemic,
The World Bank is taking large-scale and rapid action to help developing countries strengthen their response to the pandemic, increase disease surveillance, improve health measures and help the private sector continue to maintain and sustain jobs. The bank is ready to use up to $ 160 billion over the next 15 months to help countries deal with the impact of the global pandemic. The Board of Directors has already approved the first set of rapid funding for the crisis. The initial $ 1.9 billion will be earmarked for projects in 25 countries and anti-crisis action will continue in another 40 countries.
