Fitch Ratings improves outlook for Bulgaria, but warns of economic risks
International rating agency Fitch Ratings has upgraded the outlook on Bulgaria's credit rating from "stable" to "positive." This is an important signal for foreign investors, demonstrating confidence in the stability of the Bulgarian economy and the country's financial system.
Experts from the agency point out that Bulgaria is making significant progress on the path toward adopting the euro. The country is expected to continue maintaining a low level of government debt, which is one of the main advantages for the state's international financial reputation.
Despite the good news, Fitch also issues a serious warning. According to analysts, there is a risk of the economy "overheating." This means that rapid wage growth and increased consumption could lead to higher inflation, which in turn could make it difficult to meet the criteria for entering the eurozone.
Another factor the agency is monitoring is the political situation in the country. Frequent elections and the lack of a long-term regular government create uncertainty that could delay important reforms and the absorption of European funds under the Recovery and Resilience Plan.
In conclusion, Fitch's decision is a positive sign for Bulgaria, but also a reminder of the need for careful financial policy. It remains to be seen how the government will balance the desire for economic growth with the need to contain inflationary processes in the coming months.