IMF: Deflation and High Unemployment in Bulgaria in 2014
Consumer prices in Bulgaria will drop by 0.4% in 2014, which means there will be deflation, said the IMF in its spring World economic outlook.
The Fund has increased its forecast for Bulgaria's GDP by 0.1%, to 1.6%. The expectations for the unemployment, however, remain pessimistic. It is expected that by the end of the year it will be 12.5%.
For 2015 the IMF forecasts a GDP growth of 2.5%, very low inflation – around 0.9% and still high unemployment of around 11.9%.
The authors of the outlook note that this year's expected deflation is a sign for weak consumption and credit market and high unemployment, but the country's economy was sowing some signs of recovery.