IMF's Spring Outlook Slashes Bulgaria's Economic Growth Forecast

The srping World Economic Outlook of the International Monetary Fund has reduced the 2012 economic growth projection for Bulgaria by almost half.

Thus, according to the April 2012 World Economic Outlook of the IMF (Country and Regional Perspectives Chapter READ HERE), the Bulgarian economy is expected to grow by only 0.8% in 2012, down from the fall 2011 World Economic Outlook 2012 projection for Bulgaria which was 1.3%.

According to the new IMF reported released Tuesday, the Bulgarian GDP will register a growth of 1.5% in 2013.

At the same time, however, the Fund projects higher economic growth for the Central and Eastern European countries, also known as "Emerging Europe."

Thus, the emerging economies from CEE combined are expected to grow by 1.9% in 2012, and by 2.9% in 2013.

The fall forecast of the IMF for Emerging Europe was only 1.1% for 2012 and 2.4% for 2013.

The spring World Economic Outlook report of the IMF states that the potential for growth in Emerging Europe will be tightly linked to the developments in the core of the euro zone.

The IMF expects that in 2012 most of the negative consequences of the 2011 slowdown in the euro zone will be absorbed, and trade and manufacturing will start going up both in the euro zone, and globally.

According to the spring WEO of the IMF, Bulgaria's northern neighbor Romania will see a growth of 1.5% in 2012, and of 3% in 2013. Poland will be the champion in Emerging Europe with a growth of 2.6% in 2012, and 3.2% in 2013. Turkey is projected to grow by 2.3% in 2012 and by 3.2% in 2013.

The IMF report predicts that Bulgaria's unemployment rate in 2012 will remain the same as in 2011 – 12.5%, and that it will decline to 12.0% in 2013.