Government budget balance

WASHINGTON - Under an International Monetary Fund (IMF) projection, Serbia's economic growth will be close to 4 pct in 2024 and higher in the coming years based on continued real wage and employment gains and rising public investment.

The Bulgarian National Bank (BNB) has expressed strong opposition to the draft state budget for 2025, which is set to be officially submitted to the National Assembly by the caretaker government. The central bank's position highlights several concerns regarding the proposed budget's parameters and its potential negative impact on Bulgaria's fiscal stability and long-term economic prospects.

The Energy Ministry is reportedly considering a scenario of imposing a special tax on the revenues of RES projects that were connected to the grid before 2021 as a key measure for zeroing out the deficit of the RES support account projected to reach 257 million euros by year-end.

Scope Ratings has upgraded Cyprus' credit rating to A- from BBB+, marking the country's first A-level rating from a major credit agency.

Scope Ratings highlights the positive outlook for Greece’s BBB- credit ratings, emphasizing that primary fiscal surpluses are expected to be maintained in the coming years. They project that Greece’s general government debt-to-GDP ratio will decrease to 150.5% by the end of this year and to 132.8% by 2029, down from a peak of 207% in 2020.

BELGRADE - The World Bank expects the Serbian economy to grow at a rate of around 4 pct over the medium term, primarily due to consumption and, in part, investments.

In a recent Q&A, the Ministry of Finance outlined key aspects of the Greek economy’s future based on the Mid-term Fiscal Plan for 2025-2028. This plan details structural changes and projections for the economy over the next four years. Here are the highlights:

1. What are the European fiscal rules and how do they differ from the Stability Pact?

The adoption of the euro remains an unattainable goal for Romania due to its persistent fiscal deficit, according to Mugur Isărescu, Governor of the National Bank of Romania (NBR), as cited by local media. Romania's deficit stood at 5.68% last year, one of the highest in the European Union, a figure that far exceeds the requirements for adopting the single currency.

According to preliminary data on the execution of the state budget on a modified cash basis, a surplus of €1.048 billion was recorded in the January-August 2024 period. This is a significant achievement, considering the 2024 Budget Report had forecasted a deficit of €2.774 billion for this period, compared to a €92 million deficit during the same period in 2023.

Bulgaria is currently experiencing a significant budget deficit, according to the latest data from Eurostat. In the first quarter of 2024, the country's seasonally adjusted budget deficit as a percentage of GDP was -5.6%. This places Bulgaria among the highest in the European Union for budget deficits relative to GDP, on par with France.