IMF with Bleak Global Forecast, Bulgaria's Economy Up 1%

For 2013, the IMF expects a 1.5% economic growth for Bulgaria. File photo

Bulgaria and Romania will register economic growth of 1% and 0.9% respectively in 2012, according to the forecast of the October report of the International Monetary Fund, IMF.

For 2013, the IMF expects a 1.5% growth for Bulgaria and 2.5% for Romania, the Bulgarian news agency BGNES informs Tuesday.

The estimated percentages for Poland are 2.4% for 2012 and 2.1% for 2013; for Serbia the forecast is for a 0.5% recession in 2012 and a growth of 2% in 2013; for Croatia – the 2012 recession will be of 1.1% and the growth in 2013 will be 1%.

Among countries in Central and Eastern Europe, the forecast is the most optimistic for Slovakia with economic growth of 2.6% and 2.8% in 2012 and 2013, respectively.

With the European crisis deepening, a slow US economy and emerging markets' uncertain domestic demand, the IMF has trimmed its 2012 and 2013 global growth forecasts.

The IMF now expects the world economy to grow 3.3% in 2012, down from the 3.5% it projected in July. The forecast for 2013 is just 3.6%, down from the earlier 3.9%.

For the US, there is a forecast for 2.2% for 2012, while in the Eurozone growth will shrink 0.4%. Emerging markets are expected to grow at 5.3%, but the IMF did significantly lower forecasts for both Brazil and India.

These forecasts assume that uncertainty in the US and Europe is reduced with European policymakers taking additional action to save the EUR, otherwise the IMF warns that "global activity could deteriorate very sharply," the report warned.

The report was released just ahead of the IMF General Assembly as IMF's 188 member countries convene in Tokyo this week.

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