Bulgaria on Rocky Road to Recovery, GDP to Grow 3% 2011 - Think-Tank

The government expects an export-led recovery to push up growth to 3.6% this year. Photo by BGNES

Driven by strong exports, as well as the good performance of the industry and services sectors, the Bulgarian economy has started to expand, but too weakly and unsteadily, a local think-tank has said.

Bulgaria's gross domestic product will grow by up to 2.5-3% in 2011, the experts from the Center for Economic Development stated in their quarterly report.

The economy expanded by 2% in the second quarter on an annual basis, down by 1.4% in comparison with the previous quarter, which marked the first considerable increase in economic growth since the country plunged into a recession, the analysts said.

The forecast comes just days after the European bank for Reconstruction and Development (EBRD) lowered its annual economic growth forecast for Bulgaria from 3.1% to 2.3% in 2011.

The International Monetary Fund said earlier this year it expects Bulgaria's economy to grow 3% at the end of 2011 as a global recovery boosts exports demand in the EU.

All forecasts for the Bulgarian economy in 2011 are below the 3.6% growth projected by the Bulgarian government in its 2011 budget.

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