World Bank Shocks with Bleak Economic Prediction for Bulgaria

The World Bank has revised its economic forecast for Bulgaria downward for the third consecutive time, according to its latest summer report. Initially projecting a growth rate of 2.1% for this year, the institution's revised forecast marks a decrease of 0.3 percentage points. This adjustment follows previous expectations from last summer, where growth was anticipated at 2.7%. The current projection falls significantly short of Bulgaria's earlier government budget forecast of 3.2% growth for 2024, as envisioned by former finance minister Asen Vassilev.

In contrast, the World Bank anticipates that developing economies globally will grow by an average of 4% in both 2024 and 2025. This outlook places Bulgaria's economic growth notably below the global average. Comparatively, neighboring Romania is expected to see economic growth of 3.3% this year, while Poland forecasts a GDP increase of 3%.

The World Bank's report also highlights higher growth expectations for other regional economies, including Serbia (3.5%), Turkey (3%), and Ukraine (3.2%). These projections underscore a broader regional disparity in economic performance expectations, with Bulgaria facing more subdued growth prospects compared to its neighbors.