site.btaBank Experts Predict 4.4% GDP Growth in 2018, 4.2% Next Year

Sofia, March 30 (BTA) - The Bulgarian economy is yet to reach its peak with this year's GDP rising by 4.4 per cent and next year's by 4.2 per cent, the economic team of UniCredit Bulbank forecast in the bank's latest quarterly Central and East European Banking Study.

The GDP growth in 2017 was driven by exports and private consumption. This year and the next the growth is expected to be boosted by investments as well, judging by the signals that after a long period of stagnation they are gathering speed again.

Private consumption will continue to be the main motor of growth in 2018 and 2019, but the faster growth of GDP is expected to come from investments, the analysts say. In their opinion, public and private investments will increase after nearly a decade. This will improve GDP structure and will contribute to a more sustainable growth. All components of private investments are expected to grow in 2018.

Construction is expected to be supported by the increasing demand for new areas in logistics, tourism and particularly administrative buildings.

The bank's experts expect that investments in machines and equipment will also increase. The processing industry sectors currently profiting most from the increasing productions capacity include metals, medical and cosmetic products, as well as production of autoparts. After starting from scratch less than ten years ago, the automotive industry now has an over 10 per cent share of production in processing industry and three-fourths of the companies in the sector plan to increase their production capacity, a recent poll about attitudes in the sector show.