site.btaBulgarian Economy to Grow 3.9% in 2017 - EBRD Experts

Bulgarian Economy to Grow 3.9% in 2017 - EBRD Experts

Nicosia, May 10 (BTA special correspondent Hristo Vodenov) - In 2017 Bulgaria's economy will grow 3.9 per cent, according to the CEE Banking Outlook strategic analysis presented at the EBRD 2017 Annual Meeting held in Cyprus. However, in 2018 economic growth will decelerate to 3.6 per cent.

Central and Eastern Europe (CEE) have a good economic environment, with GDP expected to grow by 3 per cent or over in most CEE countries in 2017 for the first time since the crisis of 2008-2009, according to the experts of the European Bank for Reconstruction and Development.

The CEE banking sector is more lucrative than Western Europe's, the analysis says, adding that 2017 is the first year when the banking sector of all countries of the region have reported growth. Most CEE countries have a relatively high digitization rate and are gradually catching up with the EU's top achievers. For now, Bulgaria is considerably lagging behind in the use of digital services. Less than 10 per cent of consumers use Internet banking, and their share is expected to increase.

The experts also note a decrease in bad loans and the cost of risk. The banks' profits in the region increased substantially in 2016 due to one-off factors. This year the banks are expected to post smaller profits, and 2018 will bring little change.

The macroeconomic scenario for Bulgaria shows a better medium-term outlook for the economy after the March parliamentary elections, according to the experts. The election results open an opportunity for implementing policies supporting economic growth to a larger extent.