Raiffeisen More Cautious about Bulgaria's Growth

Raiffeisenbank Bulgaria has revised its forecast for Bulgaria's GDP growth for 2012 from 4% to 2.5%.

Reiffeisen has thus become the second bank to publicly lower its estimates, after beginning of August Unicredit Bulbank revised its forecast from 2.8% to 2.5%.

According to Raiffeisenbank's analysis, the economic dynamics of 2012 in Bulgaria will repeat those of 2011.

Consumption is expected to grow a meager 1%, while investments - with some 3.5%.

The much-taunted exports are estimated to grow with some mere 3.6%, as per the assessment, in part due to lower demands in countries of export.

The bank expects problems with the labor market to linger, with unemployment remaining around 11%.

Earlier Raiffeisenbank International lowered its estimates for growth in the Eurozone 2012 from 1.7% to 1.1%.

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