World Bank Raises Growth Forecast for Bulgaria

The World Bank has raised its forecast for the development of the Bulgarian economy in 2021. Bulgaria's annual GDP is expected to grow by 3.7%. The previous forecast was for growth at the end of 2021 by 2.6%. But the bank emphasizes that the country's return to pre-crisis indicators will take place only in 2022. The expected annual inflation of 3.2% is unchanged.

In the short term, the biggest risk to the country's prospects is the slow rate of vaccination against Covid-19. Despite the expected higher revenues, an annual budget deficit of over 4% of GDP could occur. Another key risk is political instability, the country's analysis says.