site.btaIMF Managing Director Welcomes Three Seas Initiative's Emphasis on Infrastructure and Connectivity

Sofia, July 8 (BTA) - International Monetary Fund (IMF) Managing
 Director Kristalina Georgieva believes that the Three Seas
Initiative is making a very important contribution by
emphasizing the key role of infrastructure and connectivity
throughout the region. "We have calculated that each euro spent
on infrastructure yields a return of 1.7 to 2.5 euro. This
bolsters growth over the long term," Georgieva said at a
business forum on Thursday in the framework of the Sixth annual
Summit of the Three Seas Initiative (3SI) in Sofia.

The Bulgarian discussed the economic outlook for the 3SI region,
 the role of the Initiative in improving that outlook, and ways
for the IMF to support the Initiative. She sees "a light at the
end of the tunnel at last" where economic prospects are
concerned. In 2021, the 3SI region is expected to reach the 2019
 level of GDP.

"The region's GDP is forecast at 3.8 per cent in 2021, double
the level in the 15 other EU member states, because the 3SI
countries are performing better in managing the economic
contraction caused by COVID," Georgieva went on to say. "The
deficit is 4 per cent, half the level in Western Europe. We
expect to continue to outstrip the Western member states of the
EU in terms of growth by an average of 1.5 percentage points
annually."

According to her, this is good news because it means that the
process of income convergence will continue, as the 3SI nations
wish.

"One thing we are not speaking much about is the role of social
infrastructure. The pandemic has taught us how important it is
to pay attention to social infrastructure. Under the
NextGenerationEU initiative, our region plans to set aside a
larger share of investments targeting science and healthcare.
This implies digitization of schools, healthcare systems;
business-wise it means higher competitiveness of our region,"
Georgieva said. NV/VE