Bulgaria, the poorest EU member state, must double productivity if it is to match the average GDP of the 24 other states by 2040, according to a World Bank presentation.
Bulgaria will never match the average GDP per head of the EU 25 if productivity continues to grow by just 2 pct per year, said World Bank economist Satu Kahkonen, but the country will attain parity with the rest of the EU if it increases the annual growth rate to 5 pct.
To this end, Bulgaria must put in place modern technologies and reform its research and education sectors, the World Bank said.
It also highlighted a lack of flexibility in the job market, criticising the “restricted” mobility between the various employment sectors, working hours characterised by “rigidity” and relatively high working costs.