The Bulgarian National Bank said that it expects the country's gross domestic product (GDP) to decrease by an annual 5.5% in 2020, before rising by 4% in 2021.
Bulgaria's economy is then expected to grow by 3.8% in 2022, the central bank said in a quarterly economic review, published earlier this week.
In the previous edition of its quarterly study, the central bank projected an 8.5% drop in GDP in 2020, a 5.1% increase in 2021, and a 4.6% rise in 2022.
"The forecast revision for 2020 reflects the lower-than-expected rates of decline of final consumption expenditure, investment in fixed capital and foreign trade flows in the second quarter," the central bank said.
The expected developments in the external environment in 2021 and 2022 indicate a more moderate growth in external demand for Bulgarian goods and services, which led to the downward revision of the GDP forecast for the period.
Bulgaria's Harmonised Index of Consumer Prices (HICP) is expected to edge up 0.3% this year, before increasing by 1.9% and 1.6% in 2021 and 2022, respectively.