The World Bank raises Bulgaria's 2017 real GDP growth forecast to 3.8%

The World Bank has raised Bulgaria’s 2017 growth forecast to 3.8% from 3.0% previously due to improving domestic demand which outweighs the diminishing contribution of net exports. Household consumption is forecasted to expand on the back of further improvements in labor market and credit conditions. The growth is expected to speed up in 2018 and 2019 to 3.9% (from 3.2%) and 4.0% (from 3.3%), respectively driven by strong consumption and increasing investments. The current account surplus as percentage of GDP is expected to be 2.8% and 2.6%, respectively in 2017 and 2018. Fiscal balance is seen at 0.6% of GDP deficit this year and improving to 0.5% deficit in 2019 and balanced budget in 2020.