BULGARIA’S GDP GROWTH IS FORECAST TO REACH 1.7% IN 2014

The European Commission’s forecast for Bulgaria foresees 1,7 % GDP growth in 2014 and 2 % in 2015. The data is from the EC’s winter economic forecast for the EU economy, issued on an annual basis. The experts note that the economic recovery, which started last year, will continue in 2014 in most Member States and EU as a whole.

According to the expert analysis, the unemployment rate in Bulgaria will drop from the current 12,7 to 12,1 in 2015. Major sources for growth in Bulgaria are export and increased domestic demand. Labour market is forecast to remain in distress. Annual average inflation rate for 2014 is projected to reach 0,5% and to increase to nearly 2% in 2015.

Average inflation amounted to only 0.4% in 2013. It fell sharply over 2013 and even turned negative in the second half of 2013 as a result of falling import prices, administratively-set energy prices and the good harvest, which led to lower food prices.

Report on Bulgaria is available here.