/ world today news/ The IMF predicts a growth of 1.6% for the Bulgarian economy this year compared to 0.9% in 2013. Expectations for next year are for growth of 2.5%, the IMF states in its report on the prospects for the world economy.
The fund predicts a further drop in consumer goods prices by 0.4% this year and an increase by 0.9% next year. The balance on the current account for this year has a negative sign of -0.4%, and for next year it is – 2.1%. The IMF also projects unemployment to fall to 12.5% this year, down from 13% last year and 11.9% in 2015.
Overall, the recovery of Europe’s struggling economies will slow this year. The slowdown is expected mainly because of lower growth in Turkey, which is the largest of Europe’s booming economies. The area includes seven members of the European Union – Bulgaria, Croatia, Hungary, Latvia, Lithuania, Poland and Romania, as well as Turkey and Serbia, which are not part of the union.
Instability in the Eurozone, internal policies of belt tightening, increasing volatility in financial markets, as well as increased geopolitical risks arising from the development of the situation in Ukraine, create significant risks for a decline in growth, the IMF also points out.
The only emerging economy to remain in recession this year is Croatia, whose economy is expected to grow in 2015.
Despite the general trend in the region, Hungary and Poland expect growth this year, thanks to stronger domestic demand.
Before the crisis in Ukraine with the anti-government uprisings and the annexation of Crimea to Russia, the IMF was more optimistic. The tense situation has exacerbated a sharp economic downturn in Russia, which faces economic sanctions from the West. The fund expressed concern that this could spread beyond the region. /AFP
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