Alarm raised over Bulgaria's stagnant economy
2012-08-01 12:57:42
Bulgaria's economy is struggling to survive another difficult year, when it will mark an anemic growth at best in the wake of the slump in the euro zone, Sofia-based think-tanks have warned.
Bulgarian analysts from Industry Watch, the Center for Economic Development and Elana brokerage company, have cut their growth forecast for 2012 to just 0-1% instead of the previously forecast 1.5%, citing slumping exports and stagnant domestic demand.
The central bank BNB estimated Bulgaria's economic growth to slow-down to 0.7% in 2012, citing the sovereign-debt crisis in the euro area.
Bulgaria's economy expanded by 1.7% in 2011.
The European Bank for Reconstruction and Development revised earlier this month downwards its forecast for Bulgaria's economic growth to 1.7% in 2013 due to slumping exports.
The bank cut its forecast for economic growth from 2.5% in the previous report published in May.
Bulgaria's economy is expected to expand by 1.2% in 2012, EBRD said.