Bulgaria’s 2009 GDP May Fall Less than Expected, FDI Seen at 3.0 Bln Euro – Fin Min

“The fall in GDP may not be that big [as 6.3%]. It’s possible to be revised,” Ana Mihaylova, deputy Finance Minister, said at Bulgaria’s 2009 - 2013 Economic Visions for European Development conference, held by the Bulgarian Economic Forum (http://www.biforum.org).

Bulgaria's economy contracted by a preliminary 5.8% year-on-year in real terms in the third quarter of 2009, compared to a 6.8% growth recorded a year earlier, beating analysts expectations of a sharper fall. It fell by a real 4.8% on the year in the first nine months of 2009, compared to a 7.0% growth in the year-ago period.

Mihaylova said FDI in EU member Bulgaria is expected to reach 3.0 billion euro this year, down from 5.4 billion euro in 2008. The current account deficit is seen at 11% of the gross domestic product (GDP) projected for 2009.

Bulgaria's nine-month current account gap narrowed to a preliminary 6.3% of GDP from 16.6% of GDP a year earlier. The country had a current account gap of 25.4% of GDP in 2008, compared to 25.2% in 2007.

The ministry expects a balanced budget in November and December. “Keeping a stable fiscal position is crucial” in times of crisis, Mihaylova said.

She added that unemployment is seen reaching 10% by the end of the year. Bulgaria's jobless rate rose to 8.23% at the end of October from 8.03% in September.

($ = 0.6645 euro)