EBRD Downgrades Bulgaria GDP Forecast to Minus 1.2%

EBRD expect Bulgaria’s Gross Domestic Product (GDP) to fall 1.2% fall over the effects of the global and Greek crisis. File Photo

The European Bank for Reconstruction and Development (EBRD) upgraded its forecast for economic growth of the countries in Central and Eastern Europe(CEE) from 3.3% to 3.7% for 2010.

The new data was announced at the 2010 EBRD Business Forum which is being held on the occasion of the Nineteenth Annual Meeting of the EBRD Board of Governors in Zagreb, Croatia, Friday and Saturday.

Eric Bergloff, Senior EBRD economist says the CEE countries are recovering from the crisis, but are still unstable and face new risks stemming from the fiscal pressure and fiscal instability of Western Europe.

In the light of the general positive trend, the fiscal forecast for Bulgaria, however, is worsening – while in January 2010, EBRD said they expect Bulgaria’s Gross Domestic Product (GDP) to remain unchanged, their new forecast if for a 1.2% fall over the effects of the global and Greek crisis.

The EBD upgrade for CEE is due to positive growth in Hungary, Russia, Turkey, and Poland.

CEE countries are benefiting from the increased export to Western Europe and increased influx of short-term investments.

The Zagreb Business Forum aims at assessing the latest political, economic and social changes, and business opportunities in Croatia and across the EBRD region of operations.

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