Bulgaria's Dependence on Russian Gas May Prevent Economic Growth - EC

Business » FINANCE | May 5, 2014, Monday // 14:16| Views: 7147 | Comments: 0
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Bulgaria: Bulgaria's Dependence on Russian Gas May Prevent Economic Growth - EC Photo by bnr.bg.

Economic recovery in Bulgaria is expected to firm in 2014 and 2015 as domestic demand gradually strengthens, according to the European Commission's latest forecast.

Growth is projected to broaden and increase gradually to 1.7% in 2014 and 2.0% in 2015, as domestic demand is forecast to recover and complement exports, which have been the main driver of growth thus far, the EC's report on Bulgaria says.

Risks to this macroeconomic forecast seem tilted to the downside, however the country's energy dependence on Russian gas imports could become a burden to growth in case of supply disruptions.

Also, the expected recovery in private consumption could prove weaker than expected, given that the Bulgarian labour market is still fragile.

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