The European Commission has Lowered its Forecast for the Economic Growth of Bulgaria

The European Commission lowered its forecast for the growth of the Bulgarian economy this year from 3.8%, as expected in the spring, to 3.5%. The explanation is the delay in exports. The forecast of the International Monetary Fund in October is that the growth for the year is 3.6%, as is the expectation of the Bulgarian Ministry of Finance, reports Dnevnik. 

The EU's autumn forecast, released today, notes that despite the slowdown, the growth of the Bulgarian economy remains well above the EU average of 2.1%. For 2019, GDP growth is projected to continue with stable 3.7% (such as the estimates of the draft budget prepared by the Ministry of Finance) and the next one - by 3.6%.

Brussels expects inflation to accelerate this year from 2%, as recorded in the spring forecast, to 2.6% as a result of rising energy prices. For the next two years, the forecast is to calm down to 2% and 1.8% respectively.

Sustainable growth against a backdrop of uncertainty in the euro area

The growing global uncertainty, the tensions in international trade and higher oil prices will have a negative effect on growth in Europe, the European Commission predicts. After several years of steady employment growth, the prospect of slowing labor market improvements and increasing supply constraints in some Member States could also reinforce this unfavorable impact.

Eurozone growth is expected to decline from its 2.4-percent peak in 2017 to 2.1% in 2018, before declining further to 1.9% in 2019 and 1.7% in 2020. The same trend is also expected for the EU-27 - projections indicate that growth will be 2.2% in 2018, 2.0% in 2019 and 1.9% in 2020.

"Growth in all EU economies is expected this year and next one, which will lead...

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