OECD lifts Bulgaria's 2021 GDP growth forecast to 3.8%
The Organisation for Economic Co-operation and Development (OECD) said that it expects Bulgaria's gross domestic product (GDP) to increase by 3.8% this year, to be followed by a 4.4% growth in 2022.
In December, OECD said that it expects Bulgaria's economy to expand by 3.3% in 2021.
Bulgaria's GDP will return to its pre-pandemic level at the end of 2021, although it will not return by the end of 2022 to the path projected before the coronavirus crisis, OECD said in its May 2021 Economic Outlook.
"The reopening of the economy will create renewed strength in household demand and business investment, which will replace government spending as the main engine of growth. The economic recovery will be reflected in gradual improvements in the labour market," the organisation said.
OECD noted that its current projection assumes that Bulgaria will encounter no further significant setbacks in bringing the pandemic under control.
According to the OECD, the immediate policy priority is to speed up vaccination so that the economy can operate again at normal levels.