EC Forecasts 1.4% 2013 Economic Growth for Bulgaria

Politics » BULGARIA IN EU | February 22, 2013, Friday // 14:38
EC Forecasts 1.4% 2013 Economic Growth for Bulgaria: EC Forecasts 1.4% 2013 Economic Growth for Bulgaria In January, the World Bank forecasted a 1.8% economic growth for Bulgaria for 2013. File photo

The European Commission forecasts a 1.4% growth for Bulgarian economy in 2013 and 2% in 2014.

The winter forecast announced Friday confirms Brussels' figures from November 2012.

The forecast comes on the backdrop of pessimistic expectations about the economic situation in the Eurozone, where the shrinking is to continue. The average EU growth will stand at the symbolic 0.1%.

According to EC, a recovery in private consumption will turn the main driver of growth. The State Budget Act, foreseeing a Gross Domestic Product, GDP, growth of 1.9% also counts on increased demand.

In January, the World Bank forecasted a 1.8% economic growth for Bulgaria for 2013.

Other drivers for economic growth in Bulgaria include public projects and investment in the energy industry.

Brussels expects the unemployment rate to stay at 12.2%, with 12.4%, according to the national forecast and 12.3% registered by the statistical office of the EU, Eurostat, in December 2012. In 2014, unemployment will slightly drop to 11.9%.

According to the forecast, inflation will rise to 2.6% in 2013 and 2.7% in 2014, from 2.4% in 2012.

Bulgaria's fiscal deficit will widen to 1.3% of GDP in 2013 after 1% in 2012, due to increased social spending such as the planned 9.3% increase of retirement pensions from April 1, 2014. The deficit is forecast to shrink back to 1% of GDP in 2014.

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Tags: European Commission, forecasts, growth, economic, Bulgaria, economy, GDP, demand, consumption, eurostat, unemployment, rate, inflation, World Bank, social spending

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