January 24 (SeeNews) - Bulgaria's gross domestic product (GDP) is seen rising by 3.7% in 2018, backed by household consumption, slowing from 3.8% growth in 2017, French credit insurance agency Coface said in a report.
"Households will benefit from higher wages resulting from the lack of a skilled workforce linked to inadequate training and emigration. A higher minimum wage and jobs growth will also provide a boost, with unemployment at a historic low," Coface said in its Country and Sector Risks 2018 report.
The 2018 budget provides for a substantial increase in spending on education, social protection and defence, Coface added.
Public investments are expected to increase by 50%, thanks to the implementation of infrastructure projects with the assistance of European structural funds.
Average annual inflation is seen rising from 1.1% in 2017 to 1.6% in 2018. Public debt is projected to fall from 24.6% of the country's GDP in 2017 to 24.2% in 2018.