site.btaEconomist Lachezar Bogdanov: Increasing Wages in Bulgaria by 4-5% against Reduced Inflation Is Good Growth

Wage increases of four up to seven percent should now look like good growth because inflation has shrunk to 2-2.5%, said in an interview with BTA the chief economist of the Institute for Market Economics, Lachezar Bogdanov, who commented on the presentation of the state budget for 2025 and the call in this regard of the Bulgarian Industrial Capital Association (BICA) for pensions and wages to be frozen from 2025 as a measure against the growth of the budget deficit.

According to Bogdanov, in the years of high inflation and nominal growth of the economy, it was very easy to raise wages and pensions by 10-15%, but with inflation under control, we must think in other numerical categories.

Regarding investments in the country, Bogdanov commented that they obviously suffer from the political crisis. He pointed out that when a regular government was formed and there was a parliamentary majority last summer, municipal projects that received funding were unblocked. He said it is good to have low taxation in Bulgaria to attract investors.

Regarding the proposed budget framework for next year by caretaker Finance Minister Lyudmila Petkova, Bogdanov commented that she has entered her role as caretaker minister without a clear political mandate, behind which to stand a parliamentary majority. According to him, the budget will most likely be voted on by the next National Assembly, which will be elected after the upcoming early elections on October 27.