Bulgaria: Growth is gaining momentum, thanks to domestic demand

Return to domestic demand-led growth in 2014-2016.

Banking sector turbulences in 2014, but systemic crisis unlikely. Currency board limits scope of monetary policy to tackle deflation.

Public finances remain adequate despite fiscal cost of banking sector turbulence. Current account is close to balance but external debt burden remains high. Foreign exchange reserves are fairly adequate.

Bulgaria: Growth is gaining momentum, thanks to domestic demand - Report