IMF PREDICTS 1.0% GROWTH OF BULGARIAN ECONOMY IN 2012

Еmerging Europe is exposed to a limited risk of contagion from the eurozone debt crisis and can expect 2.0 percent growth this year rising to 2.6 percent in 2013, the International Monetary Fund (IMF) said in its latest World Economic Outlook, AFP reported.

"Emerging Europe was significantly affected by the euro area crisis during the past year, including through the deleveraging of western European banks and declining capital inflows," the IMF said.
The IMF classifies nine countries including European Union members Poland, Romania, Hungary, Bulgaria, Lithuania and Latvia along with non-EU Turkey, Serbia and Croatia as part emerging European economies.

EU members in the region including Slovakia, Slovenia and Estonia which have already joined the eurozone are classified by the IMF as belonging to "advanced Europe", as is the Czech Republic which has not yet joined.

"Credit growth, in turn, decreased significantly. Trade with the euro area also decelerated rapidly, and growth slowed sharply from late 2011," the IMF said.

A country of 38 million, Poland is expected to clock 2.4 percent growth this year and 2.1 percent in 2013. Romania and Bulgaria will see more modest expansion with 0.9 and 1.0 percent respectively this year and 2.5 percent and 1.5 percent in 2013.

The IMF predicts others will fall into recession this year before a return to growth in 2013. Serbia is expected to suffer a shallow 0.5 percent recession this year before rebounding to 2.0 percent growth in 2013.