Gearing Up For The Euro

November 2004 | Market Strategy

For some time we have been bullish on Bulgaria's chances of early euro adoption. The Bulgarian National Bank (BNB) is now targeting 2009, which would seem to be a reasonable date for eurozone membership given the recently approved 2005 budget. Despite it being an election year, the fiscal shortfall is to be capped at 0.5% of GDP, which puts the government near to Finance Minister Velchev Klaus' commitment for a balanced budget over the medium term. When taken in tandem with solid real GDP growth - we forecast 4.2% next year and 3.2% in 2006 - the scene is set

If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.