site.btaBulgaria's Annual GDP Growth Expected to Remain at 3 to 3.5% until 2020

Sofia, May 28 (BTA) - Bulgaria's gross domestic product (GDP) will continue to grow by between 3 and 3.5 per cent annually until 2020, which is close to the potential growth rate, Dr Viktor Yotsov said on Monday, unveiling an annual report by the Economic Research Institute (ERI) with the Bulgarian Academy of Sciences at a BTA-hosted news conference.

Yotsov commented that this level is OK but it is not enough if the country wants to catch up with more developed economies.

His view was upheld by ERI Director Alexander Tassev, who said that a GDP growth rate of 3 to 4 per cent annually is not enough for Bulgaria to get close to European standards.

Yotsov does not expect high inflation due to economic overheating. He predicted a rising rate of EU funding absorption in Bulgaria. No major changes are expected in the tax system, the scientist added.

On June 30, Sofia will complete what looks like a successful Bulgarian Presidency of the EU Council, he said. The ERI does not foresee any political shocks this year or another round of early elections which would affect the state budget and the macroeconomic situation.

The ERI forecasts that the European and world economy will grow slowly.