WORLD BANK LOWERS ITS FORECAST FOR BULGARIA’S GDP INCREASE TO 1.8%

The World Bank has lowered its forecast for Bulgaria’s economic growth this year and in 2014, it became clear from the latest report of the institution. The document concerning the development of the global economy states that our country’s gross domestic product (GDP) will increase by 1.8% this year and by 2.4% in 2014. The previous estimates released in the middle of 2012 predicted Bulgaria’s economic growth at 2.5% and 3.3%, respectively.

The new forecast is close to the 1.9% GDP increase, projected in Bulgaria’s 2013 budget and is slightly above the expectations of the International Monetary Fund (1.5%).

The World Bank pointed out that the worst of the crisis is over, but growth remains “fragile” and the recovery will be a slow and lengthy process, especially for developed countries. According to experts, there is a risk of a delay of the economic growth in these countries unless appropriate measures are undertaken.

According to the report of the international financial institution, global economic growth reached 2.3% in 2012 and will remain almost unchanged - 2.4% - this year. Accelerated economic growth in the world is expected in 2014 when global GDP is forecast to go up by an average of 3.1%. In June 2012, the World Bank predicted an increase of global GDP by 3% this year.