Weekly economic analysis
Janet Yellen’s expected statement supported the market. She said the increase in interest rates would be careful and not as aggressive as investors were worried. The Senate extended its summer programme to succeed in adopting the new health reform, which also gave impetus to the market whose growth depends precisely on the push through of President Trump’s promised reforms.
On the other hand, data from the US economy are mixed. On one hand, we have a strong labour market with record low unemployment, and on the other hand, the level of business investment and wage growth do not meet expectations. This makes it more or less difficult for the Fed’s task of normalising interest rate policy.
The main reform in front of Bulgaria remains the judicial one and there is no mimicry that can cover its absence. It is the main reason for the low level of foreign direct investment, i.e. low taxation can no longer cover the lack of protection of private property, and that is something that worries investors.
Administrative reform and e-government is something I am ashamed to comment on in 2017, but obviously it is something that has not happened yet.
Bulgaria needs to invest in education in an impractical and outrageous way.
