Wall Street Journal: Bulgaria, Romania Threatened by Financial Crisis Shock

Business | November 25, 2008, Tuesday // 00:00| Views: | Comments: 0

Bulgaria and Romania together with the other fast-growing economies in the Balkans are threatened by recession and mass unemployment, according to a Tuesday's article in the Wall Street Journal.

The leading US financial newspaper points out that the Balkan region would not be able to escape from the consequences of the global financial crisis.

The sharp decline of foreign direct investments is said to drive down Bulgaria's GDP by 1,2%, which is seen as a rather negative development given that the country's economic growth was 7% in the third quarter of 2008.

WSJ also states that millions of Bulgarian and Romanian immigrants in Spain, Italy, and the U.K. are bound to lose their jobs as well.

The Wall Street Journal prognosis about Bulgaria's GDP declining by 1,2% in 2009 seems rather optimistic given that the Bulgarian government has projected an economic growth of 4,7%, the European Commission - 4,5%, and the Bulgarian Industrial Association - 2%.

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