Greece's Eurobank Ergasias said it expects the Bulgarian economy to expand by 3.8% in 2017 and to slow its growth to 3.5% in 2018.

Consumer price deflation of 0.8% in 2016 is expected to be followed by inflation of 1.6% in 2017 and 1.5% in 2018, the bank said in its Global Eeconomic and Market Outlook published on Wednesday.

Bulgaria's current account surplus, at 5.4% of GDP in 2016, is expected to shrink to 4% of GDP in 2017, and decrease further to 3% in 2018.

The general budget is expected to be balanced in 2017. A deficit equivalent to 1.0% of GDP is projected in 2018, Eurobank said.

In Bulgaria, Eurobank owns Postbank. Elsewhere in Southeast Europe, Eurobank is  present in Serbia and Romania.

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