Science Academy Forecasts 1.3% Growth for Bulgaria in 2012

Business | May 21, 2012, Monday // 15:39|  views

The Bulgarian economy will grow with 1.3% during 2012, according to an analysis by the Institute of Economics at the Bulgarian Academy of Sciences revealed Monday.

The forecast is considered to be optimistic, but is still more conservative than the 1.4% that were recently voiced by Bulgaria's vice-Minister of Finance Boryana Pencheva.

On the other hand, the Bulgarian National Bank's assesment has it that GDP for the year will grow by just 0.7%.

According to calculations of the International Monetary Fund, growth in Bulgaria will be 0.8%, while the European Commission is the most pessimistic with its 0.5% growth forecast.

Upon revealing the results of the study, Bulgarian Academy of Sciences researcher Grigor Sariyski also commented on the state of Bulgaria's bank system, which according to him is overall stable.

"Part of banks in Bulgaria might face problems when covering criteria for capital adequacy, but all in all they have leeway to act," commented Sariyski.

He explained that the main issues that lead to this situation is the high amount of bad credits, as well as the high liquidity.

According to the researcher, we might witness some "reconfigurations" in the bank system, but it is bound to remain reliable on the whole.

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Tags: growth, bank system, GDP, bad credits, liquidity, Bulgarian Academy of Sciences, Boryana Pencheva, Bulgarian National Bank, International Monetary Fund, European Commission


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