/View.info/ Bulgaria’s economic growth in 2015 is slowing down to 1% after in 2014 it was 1.7%. This is stated in the forecast of the European Commission for the economic development of the country.
Regarding Bulgaria, Brussels believes that weak investments limit growth. Moderate growth of 1.7% is expected in 2014, narrowing to 1% in 2015. and to grow to 1.3% in 2016. An expected reduction in public investment and continued weak private investment limit the growth outlook. Inflation is forecast to remain negative for most of 2015, but to turn positive towards the end of the year. After reaching 2.8% of GDP in 2014. the general government deficit is expected to remain at 2.9% of GDP in 2015. and 2016
In the fourth quarter of 2014 GDP growth of 0.4% was registered. Private consumption for the same period grew by 1.1%, the fastest pace compared to the previous year and a half. According to the European Commission, this is due to the regained self-confidence of the market as a result of the payment of the guaranteed deposits of the Corporate Commercial Bank /KTB/. The country’s net exports have also impacted growth. In general, in the past year 2014 GDP grew by 1.7%, supported by public investment and a recovery in private consumption.
The forecasts of the EC for the next year 2016. are that after the decline in 2015 we are expecting a minimal GDP increase of 1.3%.
At the same time, employment in the country remains stable after a rise of 0.4%, which is due to the increased number of jobs in agriculture and trade, the forecast also states.
The report also notes that our country recorded the strongest drop in consumer prices in the entire European Union for the past year. This trend was largely reversed in the last three months of 2014. as a result of the increase in electricity prices for households by about 10% in October. For next year 2016 inflation is expected to increase to 1% annually.
However, both business and consumer confidence remain fragile and could deteriorate in the event of further signs of instability in the financial sector.
Brussels / Belgium
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