The Bulgarian economy is accelerating

Bulgarian economic growth will accelerate in the second quarter of 2014 with a view to higher public expenditure and a promotion of Bulgarian exports, predicted the analyst company Business Monitor International.

According to the analysis of BMI stronger exports of industrial goods to Europe and the prospect of rising cash flow after the raised years ago restrictions on Bulgarian citizens to travel in the EU, suggest that the current account of Bulgaria would remain in surplus in the future.

The currency board -binding the rate of the Bulgarian Lev to the Euro will remain in force as a factor for the internal devaluation that adjusts its external imbalances for the Bulgarian economy.

The current account surplus and rising foreign currency reserves in Bulgaria show that binding of Leva to the Euro faces very small risks in the coming years.

BMI makes upward revision of the forecasts for the current account surplus of Bulgaria to 2.1% of GDP in 2014 (from previous expectations for a surplus of 0.7%) and up to 1.6% of GDP in 2015 (from a previous forecast for a surplus of 0.3%).

Business Monitor International noted that short-term risks facing Bulgaria come from the possibility for new early elections in the country this year and the ongoing legislative impasse.

Since the Bulgarian economic growth looks set to accelerate in the coming quarters, current forecasts for the current account of the country perhaps underestimated the prospects for stronger domestic demand and a higher growth of imports in 2014 and 2015, says the analysis.

The company Business Monitor International is a leading independent provider of data, analytics, ratings and forecasts covering 195 countries of 24 industrial sectors.