EBRD Affirms Bulgaria's 2019 GDP Growth Forecast at 3.4%
Thursday, 09 May 2019
The European Bank for Reconstruction and Development (EBRD) said on Wednesday that it expects the Bulgarian economy to grow by 3.4% this year, affirming its November forecast.
Bulgaria's economic expansion is expected to slow down to 3.0% in 2020, the EBRD said in its May 2019 Regional Economic Prospects report.
"We expect growth to remain solid, mainly underpinned by private consumption", the bank noted.
Last year, Bulgaria's economic growth moderated to an estimated 3.1%, from 3.8% in 2017, as private consumption was the main driver of growth.
"Public and private investment will also contribute positively to growth, as the absorption of EU funds will continue," the EBRD said.
The bank also said it expects economic growth in the region of Southeast Europe (SEE) to reach 3.0% in both this year and next. In November, the bank predicted 3.2% economic growth in SEE in 2019.
"Each country in the region has its own challenges [...] The biggest challenge globally is the US-China trade war," the EBRD’s chief economist, Sergei Guriev, told SeeNews on the sidelines of the bank's 2019 annual meeting in Sarajevo, Bosnia.
"Our countries are not directly affected, but they are affected indirectly. If the Chinese economy goes down, the German economy goes down, and our countries are very much dependent on German and Western economies," Guriev added.