Nouriel Roubini Warns High Growth Crucial for Bulgaria

According to Roubini all important challenges that Bulgaria faces depend on the recovery of strong economic growth. "Good macroeconomic framework, low inflation and deficit helped the country, but the old growth model does not work any more and a new one is needed," said the economist. According to him, this new model can be found in investments in the private sector, structural reforms through "productive" investments, including public-private partnerships. Bulgaria was too strict with austerity as energy prices soared, driving angry voters to the streets and bringing down the Cabinet, Roubini said in an interview for Bloomberg agency before event. "Fiscal austerity is valid and countries should have some fiscal policies. Probably in Bulgaria austerity has been very frontloaded." - At a forum in Sofia on February 26, Roubini, who runs a New York-based consultancy, delivered a speech entitled "Growth opportunities for a small economy in the global world". - via www.novinite.com