Bulgaria expects a 1.8% economic growth next year

“The Finance Ministry plans some 1.8% GDP growth in 2013,” Finance Minister Simeon Djankov said in Varna, posted BTA news agency. He stressed that, despite the gloomy predictions, the projected 1.4% increase of GDP is being implemented in the current budget. “More than half of the EU countries are in a recession, but Bulgaria is not among them,” added Djankov.

“Pensions will be raised by over 7.3% as of the beginning of next year,” Finance Minister Djankov, said in Varna, quoted by Focus Radio. Djankov commented that the overall inflation rate from July 2009 to July 2012 stood at 7.3%. The projected increase of pensions will compensate for this inflation. “In recent years, we have followed a very strict budget discipline so as not to be like all the other European countries where pensions are not being raised. Now comes the time to increase incomes,” commented Djankov. This week, the ministers have twice held talks on the projected increase of pensions – whether it should be the so-called progressive increase or the percentage of increase to be different for individual pensions.

“Over the last three months, domestic consumption has increased,” Djankov pointed out. According to him, in June and July alone, it increased by some 7%, compared to the previous months and the increase from the same period of last year was about 6%. The increase of incomes, especially of pensions, will have a positive effect on consumption,” underlined Djankov. He said that the average inflation rate in the country from July 2009 to July 2012 was 7.3% and the inflation rate of the goods and services included in the so-called ‘small consumer basket’ stood at around 7.6%. According to Djankov, pensions will be raised by more than both the average inflation rate and the ‘small consumer basket’ inflation rate, and people will be practically much better off than in July 2009.

The pay raise of budget salaries is a fact as of August 1. They will be made public within the next two weeks in order to ensure full transparency. The aim is to make the budget salaries equal, i.e. to increase initially these which have stayed lower throughout the years. Djankov specified that maternity benefits will not be raised and this is certain. No changes in taxes and excise duties have been proposed and these will remain unchanged.

“The upgrading of Bulgaria’s short-term rating helps our country to be increasingly noticed by international investors,” the Finance Minister added. He announced that, towards the end of the year, two large global companies will declare their intentions to move their entire production into Bulgaria.

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