World Bank Forecasts 1.7% Growth for BG Economy

Business | July 12, 2014, Saturday // 16:16| Views: | Comments: 0
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Bulgaria: World Bank Forecasts 1.7% Growth for BG Economy File photo.

The World Bank forecast 1.7% growth for Bulgaria's economy in 2014, in its EU 11 regular report released on Friday. 

It, however, did not take into account the controversies around the bankruptcy of the Corporate Commercial Bank (KTB) and the expected by Finance Minister Petar Chobanov growth of the state deficit over the 3% threshold.

According to the World Bank forecast, Bulgaria's growth was expected to reach 1.7% in 2014 and 2.4% in 2015. 

The report, which encompasses the 11 EU members, who joined the Union in 2004 and later, forecasts the overall growth of those countries to strengthen from 1.4% in 2013 to 2.6 percent in 2014. The initial reliance on net export growth, with rising demand from the rest of the EU, is gradually giving way to more balanced growth as domestic demand picks up.

According to the report, Bulgaria will still lag behind the average for the EU 11 group, with only Slovenia and Croatia having worse outlook. 

The three main threats to Bulgaria's economic growth, identified by the World Bank report, are the ageing population, youth unemployment and lack of skilled workers. According to the report, the country is among the leaders in share of young adults who neither work, nor study, nor acquire any qualifications.

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