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Bulgaria's economy 'to grow slightly in Q3 2010' - Centre for Economic Development

Monday, Nov 08, 2010

Bulgaria's economy will register modest growth of about one per cent in the third quarter of 2010, its first post-crisis growth, according to the Centre for Economic Development (CED).

CED head Georgi Prohaski said that the improvement would continue until the end of 2010 but would not offset the contraction in the first half of the year, meaning overall economic decline in 2010.

The recovery in Bulgaria's economy has been fuelled by the favourable environment and Europe's overall economy growth.

CED saw the 32 per cent increase in exports and the 7.2 per cent rise in imports as positive signs for the economy.

Meanwhile, the drop in foreign direct investment (FDI) is still of great concern.

According to calculations by CED and the InvestBulgaria Agency, FDI is expected to amount to up to two billion euro by the end of 2010 and to mark a slight increase of 20 per cent in 2011.

In light of the emerging trends, the country's economy will register moderate growth next year.

"Estimates of 3.6 per cent growth in the draft Budget are too optimistic. We believe that the maximum growth next year will be two to 2.5 per cent, but the country needs a lot more - about six per cent," Prohasky said. The country needs to earmark more funds for innovation and education, he said

Source: thesofiaecho.com