European Commission Lowers Bulgaria’s 2012 Economic Growth Forecast to 1.4%
The European Commission said on Thursday it lowered its forecast for Bulgaria's economic growth in 2012 by 0.9 percentage points to 1.4% of the projected gross domestic product (GDP) of the country.
"GDP growth is expected to remain rather low in the first half of 2012, but to accelerate gradually thereafter in line with economic activity picking up in the EU as a whole," the Commission said in a statement published on its website.
Economic growth in Bulgaria is driven mostly by the strong exports of both goods and services, but the stagnant domestic demand reflects a rapid adjustment and an imbalance in the private sector, according to the Commission.
The report also stated that regardless of the weaker outlook in the euro area, Bulgaria is not expected to fall back into recession.
Domestic demand is expected to pick up with a certain delay and to become a main driver of economic growth this year.