Bulgarian Finance Ministry: Deposits, Credits Will Grow in 2017

Deposits in the banking system will continue to grow; credits will increase as well, showed the autumn forecast published by the Finance Ministry.

The Ministry of Finance revised its forecast for credits – it expects growth of 0.2% in 2016, mainly due to household credits.

In 2017, private credit will maintain an increasing trend and reach 3%. Credits to businesses are expected to contribute to this development.

Incomes of employees will continue to grow and, in the period 2016-2019, labour costs will increase by 2.5% in real terms.

The Finance Ministry forecast deflation of 1% in 2016 and, next year, the economy will revert to inflation expected to reach 1.5%.

Durable consumer goods only will continue to become cheaper in 2017, whereas an increase in the prices of petrol and non-energy raw materials is expected.

The Finance Ministry raised its expectations for the growth of the economy from 2.1% to 2.6 % in 2016, mainly due to growing internal consumption and investments.

Growth in consumption will be caused by continuing positive trends on the labour market, as well as the registered improvement in the expectations of consumers to spend money on the purchase of durable goods.

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