Bulgaria’s economy is expected to grow by 2.1% real next year, an increase compared to 2.0% projected for 2015, the Finance Ministry said on Monday.
Consolidated budget deficit equivalent to 2.0% of Gross Domestic Product (GDP) is projected for next year in a 2016 budget draft and an updated budget forecast for the period 2016-2018 published on the Finance Ministry website.
The deficit projection for next year has been lowered from 2.5% of GDP projected in the spring forecast of the Finance Ministry.
Economic growth is expected to accelerate to 2.5% real in 2017 and 2.7% in 2018.
Budget deficit is projected to continue falling, reaching 1.4% of GDP for 2017 and 1.0% for 2018. The Finance Ministry said that the projected rate of decrease of about 0.5% a year for the period 2016-2018 reflects its policy of gradual fiscal consolidation.
Maintaining the stability of public finances is a top priority of the government’s fiscal policy – a goal which is reflected in the 2016 budget draft and the medium-term fiscal projections. Macroeconomic forecasts have been positively revised to reflect better-than-expected performance in 2015 and beneficial trends expected over the next three years, the Finance Ministry said.