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THE DEMOGRAPHIC DEFICIT IN THE ECONOMIC DEVELOPMENT OF THE REPUBLIC OF BULGARIA - CONSEQUENCES AND DECISIONS

K. Naydenov

Abstract

In recent years, European countries have become increasingly desirable immigration destinations. Europe recognizes that good immigration management is a cure against the demographic problem. This is one of the possible solutions for our country to tackle the demographic deficit in our economic development. A working population is a valuable source of tax revenue. Having enough working-age population is vital not only for the economy but also for tax revenue. This money is needed to finance the retirement and health needs of a growing number of elderly people. The percentage of elderly people in Bulgaria is steadily rising. With current demographic indicators, it is considered that by 2050 the average age of Bulgarians will continue to increase. The consequences of such scenarios would put our country in the face of radical economic and social shocks. The fight against the demographic decline is a complex process - various measures are envisaged, some of which are quite controversial. The trend of aging of the workforce, which is observed in Bulgaria, will have serious consequences for its economy. Companies will face acute shortages of labor. Workers will retire and businesses will lose the amount of knowledge they have. Bulgaria will continue to fall into the "demographic hole". This will sooner or later reduce the number of workers, increase the deficit in the pension system, and hence the possibility of higher taxes to business. Managers will increasingly need to take into account demographic changes in a given territory and incorporate them into strategic planning for the future development of their businesses.

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