EBRD lifts Bulgaria's 2019 GDP growth fcast to 3.7%

The EBRD affirmed its forecast for a 3.0% rise in Bulgaria's GDP in 2020, the international lending institution said in its latest Regional Economic Prospects report.  

"Growth is likely to be underpinned by private consumption, which typically fuels economic activity," the EBRD said. 

"Investment should also contribute positively to growth, as the absorption of EU funds is accelerated towards the end of the 2014-20 funding period and the government embarks on a major energy investment cycle."

The key risks to the outlook are mainly prolonged weakness of some of the country's major trading partners and an exacerbation of current labour shortages.

GDP growth in the EBRD's region of Southeast Europe is seen decelerating from 3.3% in 2019 to 3.0% in 2020, but still remaining above the forecast average growth of all EBRD regions, of 2.4% and 2.9% in 2019 and 2020, respectively.

The Southeast Europe region in the EBRD's report comprises Bulgaria, Cyprus, Greece, Romania, Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia.