Bulgaria's real gross domestic product (GDP) is expected to grow by 4.1% in 2021 and 4.6% in 2022, the central bank said on Friday.
Economic growth is then expected to slow down to 3.5% in 2023, the Bulgarian National Bank (BNB) said in the latest edition of its quarterly economic review published on Friday.
Bulgaria's real GDP is expected to reach its pre-pandemic level in 2022.
"In 2022, we project the growth of economic activity to accelerate up to 4.6%, which will be due to higher positive contribution of internal demand and net exports," the central bank said.
In its report the BNB forecasts that Bulgaria's inflation will accelerate significantly to 3.5% at the end of 2021, due to a rise in international energy and food prices. Core inflation is also expected to quicken towards the end of the year, influenced by higher prices of services and non-food items.
Bulgaria's consumer prices rose by 2.7% year-on-year in June following a 2.5% increase in May, the national statistical office said last week.
Earlier this month, the European Commission projected Bulgaria's GDP growth at 4.6% in 2021 and 4.1% in 2022. Berlin-based Scope Ratings also updated its predictions in July, expecting Bulgaria's economy to expand by 5.4% this year and 4.7% next year.
At the end of June, the European Bank for Reconstruction and Development (EBRD) said that it expects Bulgaria's GDP to grow by 4.5% this year and 4.0% in 2022.