EBRD Raises Bulgaria's 2018 GDP Growth Forecast
The European Bank for Reconstruction and Development (EBRD) said on Wednesday it has increased its projection for Bulgaria's economic growth to 3.6% in 2018 from 3.2% forecast in November.
"Growth is expected to remain around 3.6% in 2018, declining slightly to 3.4% in 2019. Growth will continue to be driven by domestic demand, as tight labour market conditions spur consumption and investment strengthens as work on infrastructure projects financed under the EU’s 2014-2020 budget continues," EBRD said in its new Regional Economic Prospects report.
In 2017, the Bulgarian economy is estimated to have expanded by 3.6%, the bank said.
"Private consumption was the main driver of growth, as average wages increased on account of the tightness of the labour market and a 10% increase in the minimum wage," the report reads.