Bloomberg News

Bulgaria Cuts 2012 GDP Growth Outlook as Exports to EU May Drop

October 11, 2011

Oct. 11 (Bloomberg) -- Bulgaria lowered its 2012 economic growth forecast to 2.5 percent as expansion in western Europe is slowing, Finance Minister Simeon Djankov said.

The revision was prompted by growth-estimate cuts in Germany, Bulgaria’s biggest export destination, Djankov said in an interview with BTV television station in Sofia today. The Finance Ministry will have its 2012 budget draft ready to submit to the Cabinet next week, he said.

“My preliminary estimates for next year’s growth are around 2.5 percent,” Djankov said. “Our previous 2012 forecast was for 4.2 percent. This is definitely not going to happen, given what’s going on abroad.”

Bulgaria’s economic recovery slowed to the weakest in three quarters from April through June, mirroring easing growth across the European Union amid the euro area’s debt crisis. The EU buys about 60 percent of Bulgaria’s exports. Second-quarter gross domestic product growth slowed to 2 percent from 3.3 percent in the previous three months, while seasonally adjusted GDP advanced 0.3 percent in the quarter.

--Editors: Jennifer M. Freedman, James M. Gomez

To contact the reporter on this story: Elizabeth Konstantinova in Sofia at ekonstantino@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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