Insights into Bulgaria’s Economic Growth: Projections Show 2.2% GDP Increase Coupled with 3% Inflation

Bulgaria Economic Growth

In its recent macroeconomic report unveiled on Tuesday, the Bulgarian National Bank (BNB) has unveiled optimistic forecasts for Bulgaria’s economic trajectory. Anticipating a robust 2.2% upswing in Bulgaria’s Gross Domestic Product (GDP) for 2024, compared to the 1.8% recorded in 2023, the nation’s economic landscape seems promising.

The envisaged expansion is primarily attributed to the buoyant domestic demand, while net exports are anticipated to exert a downward pressure. With a surge in private consumption fueled by rising real labor incomes, increased investment activity, and heightened government spending, domestic demand is poised to be the cornerstone of growth.

Looking further ahead, the BNB projects a climb to 3.3% in real GDP growth for 2025, followed by a slight moderation to 2.6% in 2026. These forecasts are intricately linked to the trajectory of public investment.

On the inflation front, the BNB foresees a deceleration to 2.3% by the end of 2024, with an average annual inflation rate pegged at 3%. Notably, the service and food sectors are expected to be significant drivers of this inflationary trend.

The BNB’s macroeconomic outlook, compiled as of March 27, 2024, draws upon meticulous projections concerning global economic dynamics, price movements of key commodity groups in international markets, and prevailing interest rates on the Eurozone money market as of March 7, 2024


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