Bulgaria's c-bank sees economy expanding by 3.8% in 2021

Bulgaria's c-bank sees economy expanding by 3.8% in 2021

Bulgaria's real gross domestic product (GDP) is forecast to grow by 3.8% in 2021 and by 3.9% in 2022, the central bank said.

Economic growth is then expected to show down to 3.2% 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-crisis level in 2022, according to BNB.

In the fourth quarter of 2020, Bulgaria's GDP fell by 3.8% year-on-year, following a 5.2% decrease in the previous quarter, according to the latest data published by the National Statistical Institute.

The expected rebound of the economy in 2021 is mainly due to the positive contribution of net exports and fixed capital investments, the BNB noted.

Private and government consumption will continue to make a positive contribution to the country's GDP during 2021, it added.

"In 2022, we project that net exports will increase significantly their positive contribution to real GDP growth, while domestic demand is expected to slow down its growth rate as some of the government's anti-crisis measures expire," the central bank said.

The BNB projects that the country's annual inflation will reach 3% at the end of this year, boosted by a significant increase in the prices of energy products and food. Inflation will then slow down to 0.7% at the end of next year, before it climbs up to 1.3% at the end of 2023, according to the central bank.

Bulgaria's consumer prices rose by 0.6% year-on-year in March following a 0.1% decrease in February, the statistical office said last week.

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