SOFIA (Bulgaria), October 10 (SeeNews) – Bulgaria’s gross domestic product (GDP) is projected to increase by more than 3% in both 2017 and 2018, trade credit insurer Atradius said on Tuesday.
Bulgaria’s GDP growth is expected to be supported by increased household spending stimulated by low interest rates and an improving labour market, Atradius said in a report published on its website.
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Atradius is an international provider of trade credit insurance, surety and debt collection services. The company has 160 offices in over 50 countries worldwide, employing over 3,700 people.
Investments in Bulgaria, including EU-financed infrastructure projects, are expected to pick up again, while exports continue to be driven by increased eurozone demand, according to the report.
However, a number of issues regarding the country’s long-term economic growth prospects still persist. Political instability remains an issue for Bulgaria, while corruption and red tape still hamper the business environment, the report reads.
Long-term unemployment, which accounts for over 60% of total unemployment, as well as high level of emigration and an ageing population also add to the woes of the labour market and reduce the potential for long-term growth, Atradius said.
In terms of the outlook on the performance of the sectors of the Bulgarian economy, the agriculture, pharmaceuticals, food and engineering sectors are seen as the top performers, while the credit risk situation in the construction sector is highlighted as particularly poor.