In its spring report, the European Commission affirms its macroeconomic forecast of the growth rate of Bulgarian economy for this and next year, while at the same time expecting domestic consumption to continue to be the main growth driver.
The new Commission report reads that the real GDP growth remained robust in 2016 at 3.4%, driven by buoyant net export and private consumption. In contrast, investment growth was significantly negative at the -4% in 2016, mainly due to a low absorption of EU funds.
In 2017, read GDP growth is projected to reach 2.9%, as in the winter forecast, and then slightly taper off to 2.9% in 2018, affirming the winter forecast. Domestic demand is expected to be the main growth engine, driven in particular by the private consumption and investment following the acceleration in EU funds absorption under the 2017-2020 EU programming period.