EU Commission Foresees Modest Growth for Bulgarian Economy in 2015

Bulgaria in EU | February 5, 2015, Thursday // 18:55|  views

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The European Commission foresees a modest growth of 0.8 % for the Bulgarian economy in 2015 and a further 1 % growth in 2016.

This became evident from the Commission’s Winter Economic Forecast, which was released on Thursday.

According to it, Bulgaria registered an economic growth of 1.4 % in 2014, which is an increase of 0.2 % compared to an earlier estimate.

The forecast for 2015 looks bright on the European Union (EU) level, as the economies of all member states are expected to grow for the first time since 2007.

Economic activity in the EU is expected to register moderate growth in 2015, before it accelerates further in 2016.

In 2015 economic growth should increase with 1.7 % for the EU as a whole and 1.3 % for the Eurozone.

This trend is set to continue in 2016, when a growth of 2.1 % for the EU and 1.9 % for the Eurozone is expected.

The drop in oil prices, the increased domestic and foreign demand and the announcement of the European Investment Plan are all to have a positive impact on the economic growth.

However growth prospects in Europe remain limited due to a weak investment environment and high unemployment.

The difference in the economic growth between member states is expected to remain broad in 2015, ranging from 0.2 % in Croatia to 3.5 % in Ireland.

The low level of inflation is set to continue throughout the first half of 2015, before it increases around mid-year and further into 2016.

According to the estimates, the EU is to register an inflation of 0.2 % in 2015, which would further increase to 1.4 % in 2016.

Although job creation is expected to accelerate, the unemployment rate will decrease only slowly, as it is expected to fall to 9.8 % in 2015 and 9.3 % in 2016.

The unemployment rate in Bulgaria will similarly decrease, but will remain above the EU average, as it is estimated to be 10.9 % in 2015 and 10.4 % in 2016.

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Tags: Bulgaria, EU, economic growth, forecast, Eurozone, oil prices, demand, European Investment Plan, unemployment, inflation


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