IMF raises slightly its 2021 growth forecast for Bulgaria's economy

13.10.2021 Source: IMF; FFBH

According to October 2021 World Economic Outlook (WEO), International Monetary Fund (IMF) raised Bulgaria’s GDP growth forecast by 0.1% to 4.5% for 2021 compared to April 2021 expectations of the Fund. However, the forecast for 2022 economic growth of the country was kept unchanged at 4.4%. In terms of inflation the revision in the projections is much sharper. IMF expects annual average consumer prices inflation to speed up to 2.1% from 1.2% in 2020, while dropping to 1.9% in 2022. For comparison, in the previous WEO, estimates were for growth of 1.0% and 2.0%, respectively. Current account balance is downgraded to 0.5% of GDP for 2021 (compared to 1.4% in previous release) and 0.3% of GDP for 2022 (compared to 1.2%). The fund also expects unemployment rate to remain unchanged at 5.2% in 2021 compared to last year, before declining to 4.7% in 2022. Europe’s economy growth has been revised up by 0.9% to 5.4% in 2021, while 2022 is expected to bring 4.1% growth. Prospects for the Advanced Europe have been marked up by 0.4% to 4.4% growth in 2022, while the ones for Emerging Europe, by contrast, revised down by 0.3% to 3.6%.