In its October 2024 World Economic Outlook (WEO), the International Monetary Fund (IMF) lowered Bulgaria’s GDP growth forecast for 2024 to 2.3%, down by 0.4 p.p. compared to the April WEO. Economic growth is then expected at 2.5% in 2025, which is lower than the 2.9% growth projected in the previous release. The IMF expects annual average consumer price inflation to abate more sharply, namely from 8.6% to 2.8% in 2024, down to 2.6% in 2025. The current account gap is expected to be 1% of GDP in 2024 and 1.7% in 2025. The fund kept its forecast for a moderate decrease in the unemployment rate to 4.2% in 2025 from 4.4% last year. At the same time, Europe’s economic growth prospect is revised to 1.7% in the 2024-2025 period. The outlook for Advanced Europe suggests 1% growth in 2024, while Emerging Europe growth is forecasted at 3.2%. The overall near-term outlook stipulates that the global economy will pick up steam in 2024 to 2.7% before slowing down to 2.3% in 2025. The IMF noted that risks to the outlook are tilted to the downside. Although policy rates are projected to normalize, the transmission effect of earlier rate increases could lead to a faster-than-anticipated deceleration in near-term growth and rising unemployment. Other adverse risk factors include new commodity price spikes as a result of regional conflicts, debt distress, and further contraction of China’s property sector.