EC Raises Its Expectations for Bulgaria's Economy

The European Commission (EC) raises its forecast for the development of Bulgaria's economy in 2014 and 2015.

In its winter economic forecast, published on Tuesday, the EC expects Bulgaria's GDP to grow by 1.7% and by 2% in 2015. The autumn forecast provided for 1.5% in 2014 and 1.8% in 2015.

According to the EC, however, Bulgaria's recovery will be slower, compared to other similar economies, because of the continuing and considerable decrease of the population.

The Commission said that the growth will be moderate and will be mostly driven by exports and the rebounding consumer confidence, which will result in increased internal demand.

The recovery of private investments will be gradual because of the moderate increase in economic activity.

The Commission forecasts 12.7% unemployment rate in 2014 and 12.1% in 2015. 
Inflation is expected to remain low.