Eurobank EFG Grows More Optimistic about Bulgarian Economy in 2011

Finance | May 11, 2011, Wednesday // 18:18|  views

Eurobank EFG has released an analysis upping its projection for the Bulgarian economic growth in 2011 from 2.5% to 3.2%.

According to the Eurobank EFG analysts, continuing recovery of the Bulgarian industry and exports are expected to boost the Bulgarian GDP in the first quarter of 2011.

Eurobank EFG, which operates in Bulgaria as Postbank, points out that the international credit rating agency Moody's is considering boosting Bulgaria's credit rating thanks to the government's prudent fiscal policies, and other credit rating agencies are expected to take the same step in the medium run.

The Eurobank EFG report compares Bulgaria with other Eastern European countries with the same credit rating, Baa, by Moody's – Latvia, Lithuania, Croatia and Hungary – and points out that the Bulgarian economy has overcome much better the industrial contraction, and is demonstrating better fiscal indicators.

The analysis stresses that the results from the first two months of 2011 point to a sustainable recovery of Bulgaria in the first quarter spearheaded by the export-oriented industries. It mentions that Bulgaria's export grew by 46.5% year-on-year in February 2011, and by 72.5% y/y in January.

The industrial production in Bulgaria grew by 10.1% y/y in January, and by 15.2% in February.

"Early indicators" of the recovery of domestic consumption are also visible, Eurobank EFG says, with the industrial sales growing by 32% y/y in February and by 36% in January.

The threats that the Bulgarian economy faces are rising inflation, weak crediting, domestic indebtedness, and unemployment, according to Eurobank EFG.

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Tags: Eurobank EFG, Eurobank EFG Bulgaria, Postbank, GDP growth, GDP, industry, export, exports, export-oriented, economic growth

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