Centre for Economic Development: Bulgaria's economic growth expected to reach 2.5% in 2011.

Bulgaria's economic growth for the entire 2011 will probably reach 2% - 2.5% on an annual basis, forecast Georgi Prohaski from the Centre for Economic Development (CIR), presenting the regular quarterly report on the economic development of Bulgaria. He stated that we need to achieve a double growth rate of at least 5% of GDP in order to catch up with the rest of the EU member-states where the average growth was approximately 2.5% - 3%.

According to preliminary data, the growth of the Bulgarian economy in the second quarter of the year will reach around 2%, compared to the same period of 2010, when an increase of 0.2% was reported. Some acceleration of general economic growth on an annual basis in the third quarter is also expected. According to one of the conclusions of CED's report, the Bulgarian economy has definitely recorded growth but it is weak and uneven. The main engine of economic growth continues to be industry and agriculture. Besides, the service sector, trade and transport have contributed significantly to the increase in GDP.

In the first quarter, the growth of exports of goods and services outpaced considerably the import indicator, reported economists from the Centre for Economic Development, citing the annually adjusted data of the NSI (National Statistical Institute). Domestic demand decreased by 1.6% on an annual basis in terms of final consumption and dropped by 12.4% in terms of investments. However, for the entire 2010, final consumption slumped by 1.1%, while investments declined by 16.5%. Household consumption dropped by 2.1% in the first quarter, compared to a 1.3% decline for the entire 2010, specified the CIR. Compared to 2010, when the current account deficit dwindled to almost 1% of GDP, over the first five months of 2011, there was a positive current account balance. Throughout the entire period January-May, it amounted to € 412.4 mln or 1.1% of GDP.

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