Imf issues bulgaria warning
The IMF has forecast a slowdown in Bulgaria’s economic growth this year…
According to Albert Jaeger, International Monetary Fund mission chief to Bulgaria, the country’s economic growth ‘will slow to 5.5 percent this year, down from 6.2 percent last year’.
At a meeting with Prime Minister Sergey Stanishev and Finance Minister Plamen Oresharski, Jaeger announced: "Slower growth in advanced economies has knock-on effects to Bulgaria mainly through the trade and financial channels. The slowdown is moderate, but there is the possibility of a sharper decline.
The IMF expects Bulgaria's economic growth to reduce further, reaching to 4.75 percent in 2009, which would curb inflation to 7.25 percent this year and to 5 percent in 2009, down from last year's 12.5 percent.
The slowdown is expected to come as a result from the high prices of fuel products and retail goods.
Prices to rise by 25%?
Neil Lewis, chief executive of Property Secrets, Sees something different happening this year, and highlights Sofia as a city that will benefit from increased growth during 2008: “People from rural areas are increasingly choosing to move to capital city Sofia. Demand is currently outstripping supply, leading to a surge in property values across the city.
â€As a result, house prices could go up by as much 25 per cent this year as the growing population tries to secure housing within the capital. This shows that Bulgaria has plenty of room for growth.
He added: "Sofia is a favourite hotspot for property investors as it potentially offers ultra-high returns, combined with excellent long-term prospects."
