Bulgaria's economic growth is expected to slow down to 2.3% in 2016 from last year's 3.0%, the International Monetary Fund (IMF) said on Friday. Growth of 2.3% is also projected for Bulgaria for 2017 in the IMF’s latest Regional Economic Issues report for the region of Central, Eastern, and Southeastern Europe (CESEE).
The IMF forecast is more optimistic than the spring forecast of the European Commission, which had projected 2.0% growth for Bulgaria for 2016.
Private consumption is expected to be the main growth engine in Bulgaria, increasing by 2.5% in each of 2016 and 2017 – a sharp acceleration compared with last year’s rise of 0.8%.
Growth in Bulgaria’s exports is expected to slow down to 4.1% in 2016 from 7.6% last year before picking up slightly to 4.2% in 2017.
Average consumer price inflation is projected to accelerate to 0.2% in 2016 and 1.2% in 2017, compared with deflation of 1.1% last year.
Bulgaria’s public debt-to-GDP ratio on a cash basis is expected to gradually increase from last year’s 26.9%, reaching 30.2% in 2016 and 30.6% next year.
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