EC forecasts Bulgaria’s economy to grow by 3.3% in 2019 and 3.4% in 2020

The European Commission (EC) projects GDP growth rates for Bulgaria of 3.3% in 2019 and 3.4% in 2020. The forecast is based on expectations for a robust labour market, which could increase consumer confidence and boost the growth in final consumption. Furthermore, in addition to strong investment spending, the EC expects that exports will rebound from the one-off negative effects such as the macroeconomic instability in Turkey. Nevertheless, the EC decreased the projected growth rates by 0.4 p.p. in 2019 and 0.2 p.p. in 2020 as compared to its 2018 Autumn European Economic Forecast. The EU expected aggregate GDP growth for the two years is 1.4% and 1.6% respectively.