The World Bank said it expects Bulgaria's gross domestic product (GDP) to increase by 3.3% in 2021, cutting its October projection by 0.6 percentage points.
Bulgaria's economy is estimated to have contracted by 5.1% in 2020, same as in the October forecast, the World Bank said in its January 2021 Global Economic Prospects report published on Tuesday.
Bulgaria's GDP is expected to grow by 3.7% in 2022, according to the report.
In the region of Europe and Central Asia (ECA), the pace of recovery in 2021 is projected to be slower than originally anticipated, at 3.3%, due to a resurgence of COVID-19. Growth in the region is expected to accelerate to 3.9% in 2022, as the effects of the pandemic gradually wane and the recovery in trade and investment gathers momentum, the World Bank said.
"The outlook remains highly uncertain, however, and growth could be weaker than envisioned if the pandemic takes longer than expected to fade, external financing conditions tighten, or geopolitical tensions escalate again," the World Bank noted