Bulgarian Economists Issue Grim Forecast

Foreign direct investments in Bulgaria have tumbled two times in the last year, according to a study and analysis of economists from the Bulgarian Academy of Sciences, BAS.

The data are based on 9- month research period.

Professor Garabed Minasyan said 2013 was hopelessly lost to Bulgarian economy and households should not expect something better next year.

"Exports embody contributions to the Gross Domestic Product (GDP), which this year statistics will probably list somewhere around half percent. Such growth in our economy is rather bad news than good news because good news for our economy in GDP terms should be in the vicinity of growth rates of 3% and up. I am talking about the gap that we have compared to the European Union," said Minasyan.

The clear trend of deflation should not be a reason for optimism, warn the economists.

"In this chaos that we see in the country and the absolutely inadequate actions in terms of appointments at key positions only due to party affiliation; the delay in the adoption of key laws and the distortion in the adoption of these laws, all this is the foundation of poor economic development. The World Bank is firm in its finding that when there is no peace in society and when there is strong social pressure, the first thing investors would do is to flee," said Minasyan.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!