EBRD Expects Modest Growth in SEE in 2014
Wednesday, 22 January 2014
The European Bank for Reconstruction and Development (EBRD) said recovery in the Southeast European (SEE) region will continue in 2014 but growth rates will remain modest overall, at an average of just 2.1%, compared to 2.0% in 2013, as domestic demand remains weak and foreign direct investments to the region continue to lag well behind pre-crisis levels.
“Several countries in the region face big fiscal challenges, as the combination of weak growth and the failure to rein in public expenditure has led to rising fiscal deficits and public debt levels,” the EBRD said in its latest Regional Economics Prospects report.
For Bulgaria the EBRD projects that economic growth will speed up to 1.8% in 2014 from 0.7% in 2013.
Stronger export performance and a better harvest have been important drivers of recovery in SEE. However, unemployment remains high across the region.
A recovery in all the regions where the EBRD invests is expected to be slow this year, despite improvements in the world’s most advanced economies, including the U.S. and the Eurozone.