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Economic Growth will increase by 4% in 2009


At a presentation o on Bulgaria’s economic performance in January, Georgi Prohaski, the co-chairman for the Centre for Economic Development (CED) predicted a 4% increase in Bulgaria’s economic growth this year.
He maintained that this positive growth in the economy would centre around two sectors; agriculture and service. He also stated that growth from construction, one of Bulgaria’s key economic areas over the last five years would decrease this year.

The January data was positive showing that concerns over the global financial crisis were not as severe as originally thought and consequently unemployment is not expected to reach double digit figures, although it may continue to rise from its current position of 6%.

Inflation is expected to be 4% maximum from a current deflationary position, which is ideal for consumers but a danger for businesses.  Prohaski and co-chair Alexander Bozhkov noted that the there was likely to be a 50% decrease in direct foreign investment. However  a 4% economic growth is far higher than most Western European nations achieve.