The IMF Downgrades Economic Forecast for Bulgaria
The International Monetary Fund (IMF) has downgraded its global GDP forecast for 2013 and 2014, including for Bulgaria.
In its biannual assessment of the world economy, the IMF predicts a 0.5% growth for Bulgaria in 2013, as opposed to the 1.2% forecast in April. For 2014, the figure is 1.6%, down from 2.3% in the April assessment.
Bulgaria's Finance Minister Petar Chobanov stated recently that the government predicts a 1.8% growth for the following year.
An IMF mission visited Sofia from June 27–July 3, 2013, to discuss economic developments and government policies with the Bulgarian authorities.
In its latest report, the Fund points out that Bulgaria is among the countries with structural unemployment, where bold reforms targeted at increasing employment and competitiveness are necessary.
The expected global growth for 2013 is 2.9% and 3.6% for 2014.
The Fund warns that the political standoff in the US may pose a threat to the global economy, if it is not resolved quickly.
However, it predicts that Italy and Spain's economies, which have been in recession for the past few years, will finally experience growth.
The anticipated Eurozone unemployment rate for 2014 is 12.2%, down by 0.1% from the last assessment.
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Just to state the obvious and reiterate the facts one more time.
Nothing significant can and should be expected from now on from the Western parts of the world (US, EU…). I mean it gravely if the West doesn’t start radical changes towards flexibility and trade the heavy debt load will strangle it and destroy it!
All the growth, innovation, consumption, developments and etc. will be coming from the rapidly growing parts of the world like Asia, Eastern Europe, South America, Africa….
As far as Bulgaria’s economy is concerned, the country is just a “leaf in the wind” and it will be affected by the environment in which it position itself. If the country orients itself towards the growing areas of the world it will have a greater growth and if it sticks too much with the West it will be stagnated.