Economists Forecast 4.4% GDP Growth for Bulgaria
The Bulgarian economy will grow by 4.4% this year, which is the second fastest rate in Central and Eastern Europe after Hungary. Next year Bulgaria will be at the forefront with an economic growth of 4.2%. This is predicted by UniCredit Bulbank's economists, according to which our country performs well despite the lack of labor force.
At the same time, the cabinet adopted yesterday a more conservative prognosis for the development of the Bulgarian economy over the next three years. According to it, the expected GDP growth of this year is 3.9%. Next year, we expect 3.8%, and in the next two years there will be a slowdown to 3.7%. By comparison, in 2017, GDP grew by 3.6%.
According to Unicredit Bulbank analysts, most CEE countries have already reached the peak of economic growth and are already showing signs of overheating. For Bulgaria, however, the forecasts remained stable, as an indicator of this was the growth of savings for citizens and businesses. Household loans are expected to grow by up to 10% in the next two years. They will be the main driver for greater consumption and higher economic growth.
According to the three-year budget forecast, the minimum wage will increase to 650 leva by 2021. Along with income growth, however, inflation accelerates. It will exceed 2% over the next 3 years.
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