Bulgaria: Prognosis for Bulgarian GDP growth

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Bulgaria: Prognosis for Bulgarian GDP growth

pechilkova.jpg

Donka Pechilkova

According to the prognosis of the World Bank, Bulgarian GDP will grow in 2014 by about 1.7%. The analysis goes even further as the forecast for the coming year suggests an estimated increase of 2.4% in 2015; and up to 2.8% growth in 2016. As a comparison, at the beginning of the year the expectations were that the Bulgarian GDP will increase by 2%. The report is in alignment with the opinion of the European Commission and is slightly higher than the forecast of the International Monetary Fund. In the report, Bulgaria is listed in the sub-region of the developing countries from Central and East Europe, along with Albania, Romania and Serbia. The expectations are that the economies of these countries will increase mainly by realising higher export levels mainly to Western Europe, even though this index recorded a drop during the past 12 months. Exporting is the main index that could increase the GDP of the developing countries, due to several reasons such as the politically unstable situation in the region; the high rate of unemployment and the fragile bank systems. Another destabilising factor is the tension between the EU and Russia. Additionally, there is the risk that the growth of the Bulgarian economy will be prevented by both the ageing of the population and the emigration of the younger population. Also, according to the World Bank there are no significant reforms that could increase investments into Bulgaria.

The advice of the Bank to the Bulgarian experts is to invest more funds faster into the internal structuring reforms, so as to be able to stimulate growth up to a level that will eradicate poverty in the country.

Meanwhile, global GDP has decreased from 3.2% to 2.8% with the main factor being the situation in Ukraine. The tendency is for the growth of the economies of the developing countries to increase faster than those of the 'rich countries'.

Generally, the opinion of the institution is that financial stability is improved and financial indices are extremely good. Nevertheless, the warning of the World Bank is that now is the time for experts and leaders to prepare their economies for the next financial crisis.

Donka Pechilkova (donka.pechilkova@eurofast.eu)

Eurofast Global, Sofia Office

Tel: +359 2 988 69 78

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

Countries which care about fair taxation of tech multinationals and equitable global distribution of wealth should back the UN’s tax framework, writes economist Abdelmalek Riad
The cuts disproportionately affected staff in certain positions, the report also found; in other news, MHA announced the €24m acquisition of Baker Tilly South East Europe
The plan aims to improve the efficiency, transparency, and effectiveness of direct tax administration in India
Meanwhile, South Africa’s finance minister has accepted a court decision on suspending a VAT increase and US President Donald Trump mulls a 100% tariff on foreign films
Jaime Carey speaks about the benefits of his tax background, DEI values, the use of AI for a smarter legal practice, and other priorities that will define his presidency
Historically low levels of attrition over consecutive years made a ‘difficult decision’ necessary, PwC has reportedly said
WTS Global is also vetting new potential member firms in Algeria, Cote D’Ivoire and Benin, Kelly Mgbor tells ITR in an exclusive interview
The scope of qualifying pillar two tax credits could reportedly be broadened; in other news, hundreds of IRS appeals staff are to resign
For many taxpayers, the prospect of long-term certainty that a bilateral APA offers can override concerns about time, cost and confidentiality
Levine, who served under the Joe Biden administration, led the US’s negotiations on the OECD’s two-pillar solution
Gift this article