Bulgaria’s economy was set to grow by three per cent in 2020, according to the latest World Bank’s Global Economic Prospects report, released on January 9.
That figure is below the 3.6 per cent growth estimate for Bulgaria’s economic growth in 2019, and also below the 3.4 per cent 2020 growth forecast for World Bank’s Central Europe sub-region, which includes Bulgaria.
Looking further ahead, growth in Central Europe is expected to further decelerate to 3.1 per cent in 2021 and three per cent in 2022, the World Bank said. Its forecast for Bulgaria for 2021 and 2022 was for 3.1 per cent growth.
“Progress on structural reforms is key to support private investment growth over the medium term. Growth in the sub-region is highly dependent on the continued absorption of EU structural funds, with the current cycle expected to end in 2020,” the report said.
Overall, the report forecast global growth at 2.5 per cent in 2020, slightly higher than the 2.4 per cent estimated for 2019, which the lender described as the world economy’s “feeblest performance since the global financial crisis”, which it owed to weak trade and investment.
“Even this tepid global rally could be disrupted by any number of threats. Trade tensions could re-escalate. A sharper-than-expected growth slowdown in major economies would reverberate widely. A resurgence of financial stress in large emerging markets, an escalation of geopolitical tensions, or a series of extreme weather events could all have adverse effects on economic activity,” the World Bank said.
(Photo of the World Bank headquarters: Shiny Things/flickr.com)