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Bulgaria's Finance Ministry Forecasts Economic Growth of 2,1% in 2009

by Sofia News Agency www.novinite.com, 16 Dec 2008

Bulgaria's Ministry of Finance forecasts a 2,1% economic growth in 2009, the Finance Minister Oresharski announced in Parliament Tuesday during the second reading of the 2009 draft budget. In his words, this was a moderately pessimistic forecast, and a new one most likely would be prepared in January 2009. Oresharski also pointed out the 2009 draft budget included a moderately optimistic economic growth forecast of 4,7% since the European Commission had predicted Bulgaria's economy would grow by 4,5%. The Finance Minister also said the 2009 draft budget included sufficient fiscal buffers, and that there was no reason for concern over the effects of the global financial crisis in Bulgaria. During the debates the leader of the rightist Democrats for Strong Bulgaria party and former PM Ivan Kostov insisted that the government reduce the expected income by BGN 1 B so that the taxes could be reduced in order to leave additional funds in the economy. Kostov believes the current draft budget would only further inhibit business development, and would contribute to the recession.
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