Bulgaria's GDP growth to slow down in 2019, 2020 - World Bank

Bulgaria's GDP growth to slow down in 2019, 2020 - World Bank

Bulgaria's real gross domestic product (GDP) growth is expected to slow down from an estimated 3.1% in 2018 to 3.0% this year and 2.8% in 2020, the World Bank said on Friday."Domestic demand will continue to be the main driver of growth supported by labor market tightening and additional public-sector wage increases," the World Bank said in an Economic Update for Europe and Central Asia. However, the expected weaker external demand will put pressure on the country's trade balance, according to the World Bank.Private and public investment is expected to remain strong, backed by low interest rates and EU funding. However, investment sentiment might be affected by increasing uncertainty in external markets, the World Bank noted.  Bulgaria's current account balance is expected to remain positive, but the surplus is projected to narrow progressively - from 4.6% last year to 2.1% in 2021.Consumer price inflation is seen speeding up from 2.8% last year to 2.9% in 2019, and 3.0% in both 2020 and 2021. Slowing growth in Bulgaria’s main EU trading partners and further slowdown in Turkey are among the major risks to the outlook. In addition, tightening global financial market conditions could increase the cost of lending to the private sector with negative implications for investment.

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