Economic freedom in Bulgaria

Bulgaria ranks 60th in the latest Index of Economic Freedom, published in 2016. The index is published annually by The Wall Street Journal and the Washington-based Heritage Foundation think tank. Bulgaria's overall score is 65.9, a decline of 0.9 points from the previous edition. The country's economic freedom status is classified as moderately free. It ranks 28th in Europe, with a score above the world average but below the European average. According to the index's compilers, Bulgaria has made considerable progress in managing public finances and regulatory efficiency, but concerns remain regarding property rights and corruption. Corruption is identified as a major problem in Bulgaria, with corrupt and inconsistent public administration, a weak judiciary and organised crime hampering the country's economic prospects, while property rights are poorly protected. The editors state that starting a business is quick and note that the minimum capital requirement has been eliminated. The index observes that in 2015 the government began reducing subsidies to the loss-making, largely state-owned energy sector. According to the authors, relatively weak regulatory and judicial systems may discourage foreign investment. Bulgaria improved its scores for “freedom from corruption” and “fiscal freedom”, but deteriorated on government spending, business freedom, labour freedom and monetary freedom. It maintained its scores for property rights, trade freedom, investment freedom and financial freedom. Hong Kong retained the leading position, while North Korea ranked last. The index covers four broad policy areas encompassing ten freedoms, ranging from property rights to entrepreneurship. A total of 186 countries appear in the latest edition, which covers the period from mid-2014 to mid-2015. The latest edition classifies the world economy as moderately free, with economic freedom increasing for the fourth consecutive year. The global average of 60.7 is the highest ever achieved in the index's 22 editions. Scores improved in 97 countries and fell in 74.

Source: Novinite

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