Average Monthly Wage in Bulgaria To Exceed BGN 1,000 in 2017

The average monthly wage in Bulgaria will exceed BGN 1,000 in 2017, forecast experts of UniCredit Group. The forecast was made at the financial forum Euromoney in Vienna, reported BTA.

Economists expect the average monthly wage to increase to BGN 1,039 in 2017 and reach BGN 1,125 in 2018. According to data of the National Statistical Institute (NSA), at the end of 2016, the average monthly wage in the country was BGN 954.

According to analysts, Bulgaria’s economy will grow by 3.6% - or an increase of 0.1%, compared to 2016. The main engine of growth will be internal demand and individual consumption.

Consumption will be supported by an increase in salaries, while the creation of new jobs will drop because the shortage of labour already restricts growth in economic activity in certain sectors, stated the chief economist of UniCredit Bulbank Kristofor Pavlov.

According to Pavlov, households are more confident in the stability of their income and jobs, while banks wish to extend further credits. This, in turn, will improve the prospects of the residential construction sector, which could lead to more intense building activity and, thus, moderately higher prices of homes in 2017 and 2018.

The financial institution expects a 0.9% drop in unemployment in 2017 to 6.8% and yet another decrease of 0.8% in 2018.

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