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Bulgarian households enjoy stable well-being. This shows a report from a leading financial institution. However, there is a worrying trend: the gap between rich and poor in the country remains and even widens.
The report, which analyzes almost 60 countries, shows that Bulgaria is slowly but surely moving upwards. However, not for last year, because in the short term we are one position behind. Thus, Bulgaria is ranked 36th in terms of wealth for 2019. So, the average economy of a family exceeds 9,500 euros. And experts point out that the reason is the low indebtedness of the Bulgarians.
However, in this context, the gap between rich and poor is widening. In 2019, the population of developed economies was approximately 22 times richer than that of developing economies. By comparison, just three years ago the difference was 19. However, this is a significant improvement: just 20 years ago the difference between rich and poor countries was 87 times.
According to experts, Bulgaria’s low indebtedness leads our country to rank 36th in terms of household financial assets.
“The level of indebtedness remains low compared to world standards. In his group, Bulgaria is in the golden mean,” explained Vladislav Rusev, CEO of a pension insurance company.
“Yes, we are the poorest country in the club of the rich, but really in the context of the whole world we cannot say that we are in a bad position,” said economist Kaloyan Staykov.
Analyzes show that our country is part of a long-term trend of the poorest catching up with the richest. Yet for the past three years, he has been backtracking.
“The catch-up was the result of globalization. Globalization gives developing countries access to markets, to resources, to technologies, which allows them to increase their wealth,” Vladislav Rusev explained.
The report points to another troubling trend: the middle class has shrunk significantly.
“This is again the effect of the slowdown in growth in developing countries, and this effect comes mainly from Asia. The reduction is 200 million. And thanks to what happened in 2019, the industrial recession, trade wars, especially between the United States and China, as well as social unrest, the refugee crisis and others, ”explained Rusev.
“Part of this decrease is due to the fact that these people have become rich,” explained Kaloyan Staykov.
However, a pandemic can change that.
“You can expect the financial situation of households to get worse to some extent. They should resort to withdrawing savings, selling assets to some extent or not to come up with new savings,” Staykov said.
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