UniCredit: 4% Increase in Bulgaria's GDP for 2018

Unicredit Bulbank predicts that 2018 will mark the largest growth in Bulgaria’s economy after the recession of 2008, with an increase of 4% in GDP.

Unicredit’s report states: “We expect the real growth in GDP to reach 4% on a yearly basis for this year, supported by the growth in income, increase in employment in the household sector, as well as the revival of the construction of housing and the utilization of EU funds.”

According to the bank, these factors are expected to contribute to the economic growth and to be sufficient and sustainable, so that the increase will only be slowed marginally in 2019 to 3.9% annually.

Unicredit’s previous estimation of a 4,4% GDP growth for 2018 proved wrong due to the lower-than-expected economic activity in the country along with the increase in the price of crude oil.

Unemployment is also expected to reach the historic minimum from 2008 at 5,7%. In 2018, the expected unemployment rate will reach 5,4%, the lowest since the collapse of the communist regime in Bulgaria.

Inflation, however, will increase to 2,7%. Prices in the energy sector are to blame for this, with the price of crude oil being mentioned as the major reason.

Alex Dimchev

Alex Dimchev is a writer, editor, and weapons master for EUscoop.com

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