July 12 (SeeNews) - The European Commission said on Thursday that it has affirmed its forecast for Bulgaria's economic growth in 2018 and 2019 at 3.8% and 3.7%, respectively.
"Positive labour market developments and planned wage increases in the public sector should provide the fuel for continued private consumption growth," the Commission said in the summer edition of its European Economic Forecast.
The recovery of EU funds absorption is expected to result in strong investment growth, it added.
The Commission also expects Bulgaria's imports to continue to outweigh exports.
Bulgaria's Harmonised Index of Consumer Prices (HICP) inflation is expected accelerate from 1.2% in 2017 to 2.0% this year, and then slow down to 1.8% in 2019.
"This pattern is mainly due to a strong base effect in energy products, while the rise in real disposable incomes should provide continued support to consumption and prices generally," the Commission said.