The latest World Economic Situation and Prospects report from the United Nations Department of Economic and Social Affairs (UN DESA) sheds light on Bulgaria’s economic trajectory, painting a cautiously optimistic outlook amid global uncertainties.
Despite a challenging global economic landscape, the report projects Bulgaria’s economy to exhibit a positive growth trend. Forecasts suggest a gradual acceleration in real GDP growth rates, from an anticipated 1.9% in 2023 to 2.6% in 2024, culminating in a projected 3% growth in 2025 – exceeding the EU’s anticipated growth rates.
UN Secretary-General Antonio Guterres highlighted the projected difficulties for 2024, foreseeing sluggish global growth, weak investments and escalating conflicts and extreme weather posing risks to global economies. This context sets the stage for a slower global GDP growth, anticipated to hover around 2.4% in 2024 before moderately improving to 2.7% in 2025, remaining below pre-pandemic levels.
In Bulgaria, the report anticipates a marked improvement in consumer price inflation, foreseeing a decrease from 8.4% in 2023 to an average of 3% in 2024 and further to 2.8% in 2025, reflecting positive trends in price dynamics.
However, concerning the country’s international competitiveness, the report paints a less favorable picture, indicating a momentary peak in 2023 but a broader deterioration in competitiveness overall.
Despite these challenges, Bulgaria has managed to maintain the population’s purchasing power by balancing wage growth against the rise in consumer prices. (Novinite/Business World Magazine)