Bulgaria’s economic growth to reach 1.5% in 2013

“The International Monetary Fund (IMF) expects Bulgaria’s gross domestic product (GDP) to rise by up to 1.5% in 2013,” Finance Minister Simeon Djankov said before the Council of Ministers meeting on Wednesday. According to Djankov, the GDP may increase due to the stronger domestic demand and the better absorption of EU structural funds. However, economic growth and an increase in the employment rate will require even bolder reforms. Higher capital expenses for basic infrastructure, ensured via a still better absorption of EU funds, is the best stimulus for growth, IMF specified.

“That is interesting because IMF does not usually give details (and I witness it for the first time in the 18 years I have been working with this institution) or suggest steps for enhancing growth,” added Djankov.

Bulgaria’s actual GDP growth will reach 1% in 2012 and will increase to 1.5% in 2013, IMF predicted on Tuesday.

“Strong buffers and consistent stringent policy allowed Bulgaria to maintain stability in a complex environment. Nevertheless, economic growth is still weak, the unemployment rate is high and the economy remains exposed to external risks, especially in relation to the crisis in the Eurozone,” said the head of the IMF Mission to Bulgaria Catriona Purfield.

According to IMF data, the growth of the Bulgarian economy in 2012 is due to the stronger domestic demand and the absorption of EU structural funds, and in 2013, it will be a result of the recovery in exports.

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