Bulgaria will end the year with economic growth of 4.1 % predict the economists of UniCredit Bulbank in their last analysis for CEE, published on the bank’s website. Experts slightly lower their forecast for annual GDP growth of expected 4.4% for the previous Q3 because of three reasons:

• the low vaccination rate amid the dominant highly contagious Delta variant
• the political instability
• the procrastination of the Recovery and Sustainability Plan

In 2022, the economy will maintain the same growth rate and end with 3,9 % economic growth.

The new restrictive measures and possibly extended period of fiscal support for the household and businesses affected by the pandemic will have a negative impact on the economic recovery, according to the UniCredit’s analysis.

On the other hand, in November, Bulgarians will have government elections for the third time this year. The political instability in the country and the selection of a new government have postponed the execution of some infrastructure projects and the implementation of the Recovery and Sustainably Plant, whose positive economically effect we wouldn’t see this year.

The inflation will be 4.5 % at the end of the year, because of several factors acting at the same time according to UniCredit’s analysis. However, it will disappear at the end of next year, when the rates will be on the half – 2.1 % at the end of this period.

Download the analysis HERE in Bulgarian.