Economic growth in Bulgaria and in South East Europe, SEE remain modest, but shows signs of recovery from the very low levels recorded in 2012, says a survey by EBRD.

In Bulgaria the economy showed little signs of a sustained recovery in 2013. Weak internal demand means that growth in 2013 is likely to be slightly lower than the 0.8 per cent growth recorded in 2012, the European Bank for Reconstruction and Development, EBRD says in its latest Regional Economic Prospects report named “Modest Recovery For South Eastern Europe” that was issued on Tuesday.

The economy in Bulgaria is showing little signs of a sustained recovery in 2013.

Export performance continues to improve but weak internal demand means that growth in 2013 is likely to be slightly lower than the 0.8 per cent growth recorded in 2012.

On the positive side, prices are stable, public debt is the second lowest (relative to GDP) in the EU and the country continues to perform very strongly by EU standards on the fiscal side, notwithstanding a modest increase in the government deficit target (to 2 per cent of GDP) for 2013.

For 2014 a slight improvement to 2.0 per cent growth Bulgaria is expected, according to the EBRD report.

Bulgaria is one of the economies in South Eastern Europe that has yet to recover to its pre-crisis level of output, says the survey.

Growth in all SEE countries is expected to be positive, reaching on average 1.6 per cent this year and 2.2 per cent next year, says the EBRD report.

SEE is benefitting from the positive signs in the eurozone, according to the survey.