World Bank Sees Economic Prospects for Bulgaria Improving in 2014
Thursday, 19 December 2013
Economic prospects for Bulgaria are brigthening up with the improvement in the external environment, especially the euro area emerging from recession in 2014, the World Bank said.
Bulgaria's economic growth will accelerate to 1.7% next year from 0.6% in 2013, the World Bank said in its EU11 Regular Economic Report. The report covers the eleven countries that joined the EU after 2004.
"Amid a gradually improving external environment and supportive domestic developments, EU11 growth is expected to increase in 2014 to over 2.0%, from 1.0% in 2013," the World Bank said, adding that economic growth is expected to become more broad-based with rising domestic demand.
"Notably investment is expected to grow, having declined for the last two years, as external demand, particularly from the euro area, boosts business confidence and industry," the international lender noted. However, the recovery is expected to be protracted, with growth not reaching pre-crisis rates for some time.
The bank also highlighted the need for reforms, such as improving insolvency practices or the issuance of construction permits. "More can be done to improve competitiveness, promote entrepreneurship and create jobs, as unnecessarily complex business environment breaks the virtuous cycle linking productivity, enterprise growth, and trade with shared prosperity," the bank said.