June 9 (SeeNews) - Bulgaria's gross domestic product (GDP) is expected to decrease by 6.2% in 2020 due to the effects of the coronavirus pandemic on the country's domestic demand and exports, the World Bank said.
The country's economy is expected to subsequently pick up and record a 4.3% growth in 2021, the World Bank said in its June 2020 Global Economic Prospects report published late on Monday.
In the previous edition of the report, published in April, the World Bank projected that Bulgaria's GDP will fall by 3.7% in 2020 and rise 3.9% in 2021.
The recession in Bulgaria is expected to be deeper than in other countries as the country's economy is among the most susceptible to global spillovers due to how deeply embedded in global value chains it is.
In addition, supply chain disruptions and falling demand are causing a collapse in exports from the country's otherwise strong automotive sector, the World Bank noted.
The World Bank also said it forecasts a 5.2% contraction in the global gross domestic product (GDP) this year, which will be the deepest global recession in eight decades, despite unprecedented policy support.