site.btaEuropean Commission Upholds 2017 Growth Projections for Bulgaria

European Commission Upholds 2017 Growth Projections for Bulgaria

Brussels, February 13 (BTA) - In its winter forecast released on Monday, the European Commission has upheld its projections at 2.9 per cent for Bulgaria's economic growth in 2017, and at 2.8 per cent in 2018.

Under its revised projections, in 2016 Bulgaria's economic growth is expected reach 3.3 per cent. In its autumn forecast, the Commission projected a 3.1 growth in 2016 and 2.9 per cent in 2017.

According to the Commission, domestic demand continued to be the main growth driver. However, investment is forecast to gain momentum with growth of 3.2 per cent in 2017, as the implementation of projects under the2014-2020 EU programming period is expected to accelerate.

The Commission projects that risks to the growth outlook are tilted to the downside.

The Commission forecasts a 0.8 per cent inflation in 2017 following a period of deflation since 2013 due to strong domestic demand, rising prices for processed food as well as recovering energy prices. In 2016, inflation is expected to reach minus 1.3 per cent and in 2017 it is projected at 1.2 per cent.

According to the forecast, unemployment in Bulgaria will continue to decline. In 2016 it is expected to reach 7.7 per cent, in 2017 7.1 per cent and in 2018 6.8 per cent.