/ world today news/ The European Bank for Reconstruction and Development reduced the projected economic growth of Bulgaria in 2014 from 1.9 to 1.5 percent of the Gross Domestic Product.
The difference of 0.4 percentage points is between the May forecast and the bank’s latest calculations and is attributed “mainly to the negative impact of political uncertainty and recent turmoil in the banking sector”.
However, the long-term effect is likely to be limited, thanks to the quick reaction of the authorities, analysts note, specifically pointing to the declaration of intention for Bulgaria to join the single supervisory mechanism within the European Banking Union.
The new forecast for 2015 is an increase in the Gross Domestic Product of 2 percent.
However, the bank predicts a contraction of Russia’s economy next year, as a result of the Ukrainian crisis. Zero growth is expected this year.
The forecast for Ukraine is an economic contraction of 9 percent this year and 3 percent next year. These expectations are due to the unrest in the eastern part of the country and its consequences.
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