site.btaUPDATED Bulgarian Economy Ranks Among Europe's Least Competitive in IMD Ranking

The Bulgarian economy ranks among the least competitive in Europe, the Center for the Study of Democracy (CSD) shared on Tuesday. This finding was published in the 36th edition of the World Competitiveness Ranking 2024 by the Institute for Management Development (IMD).

Bulgaria ranked 58th out of 67 countries, showing no progress since 2021. The country dropped 10 spots compared to 2020 and 20 spots compared to 2009. The country experienced the most significant declines in infrastructure conditions (from 54th to 59th place) and business environment (from 62nd to 65th place). However, for the third consecutive year, its economic performance improved (from 48th to 45th place), due to better macroeconomic indicators such as rising real GDP per capita, CSD said.

The main challenges and opportunities for improving Bulgaria's competitiveness in 2024 include prolonged political instability, weak rule of law, endemic corruption, delayed entry into the eurozone, and the risk of losing EU funding.

Other concerns are a deteriorating business climate, low competitiveness and productivity, a high share of the informal economy, and being on the Financial Action Task Force's grey list. The country also faces a continuing population decline, a shrinking labour market, poor infrastructure conditions, and deepening social and economic inequalities.

Caretaker Finance Minister and Deputy Prime Minister Lyudmila Petkova reported progress and attended the adoption of decisions on specific actions on the remaining measures included in the Action Plan of the Financial Action Task Force (FATF), the Government press office reported. This happened at a meeting of the council for implementation of the national mechanism for defining policies and coordination in combatting money laundering and terrorist financing, which took place in the building of the Council of Ministers.

Decisions were also adopted for other actions to increase the assessment of technical compliance according to FATF recommendations, the implementation of which depends on the exclusion of Bulgaria from the so-called "grey list", added the Government press service. Specific actions to improve coordination between competent authorities and institutions were discussed.

The high share of the informal economy in Bulgaria and the presence of the country in the gray list of the global supervisory body FATF were mentioned earlier on Tuesday among the main challenges to improving the competitiveness of the national economy on the occasion of the publication of the World Competitiveness Ranking by the Institute for Management Development.