In an uncertain environment, economic policies need to deal with significant challenges. While the recovery from the pandemic-induced crisis was getting hold, the war in Ukraine is expected to have a significant economic impact, including by slowing growth and increasing inflation, the International Monetary Fund warned in its Concluding Statementat the end of its official mission to Bulgaria. 

Growth is tentatively projected near 3 percent this year, while inflation will likely reach double digits.

The Fund recommends a reform of the tax system as well as a more efficient allocation of public spending. The nominal wage freeze set in the current budget may no longer be desirable in a high inflation environment, experts say.