The European Commission, in its recent predictions, states 2.1% growth for the Balkan state of Bulgaria in its Gross Domestic Product (GDP) for the ongoing year. Meanwhile, the interim projection done by the EU was 3.7% prior to the beginning of the war between Russia-Ukraine.
The Commission, on Monday, in its Spring 2022 Economic Forecast, stated that amid the Russian military invasion, there had been a significant hike in the energy commodity prices the businesses will curtail wage growth and investments.
“The impact of the phase-out of most pandemic-related measures is expected to be partially offset by measures put in place in response to high energy prices, aid to people fleeing the war in Ukraine and pension updates”, underscored the European Commission.
Besides this, EC indicated that the real economy of the European country will be increased by 3.1% in 2023 as public investment, which will be supported by funding from the Recovery and Resilience Facility (RRF) of the European Union.
Following the above statement, the EU stated, “The direct exposure of Bulgarian goods exports to Russia and Ukraine is relatively limited, at 1.3% for each country in 2021. Nevertheless, the overall negative effect of the war on external demand is set to limit export dynamics”.
In addition, as per the Commission, consumer price inflation is likely to reach 11.9% during the ongoing year. This will be caused by energy and commodity price pressures.
During the fourth quarter of 2021, the GDP of the Balkan state witnessed an increase of 4.7% year on year and 4.6% during the third quarter. The data has been shared by the National Statistical Institute in the month of March this year.
On the other hand, IMF predicted that the gross domestic product (GDP) of Bulgaria would witness a soar of 3% during the ongoing fiscal year.