Bulgaria » Outlook

International Property Brokers expect annual average inflation of 6.8% (up from 6.5%) and a current-account deficit equivalent to 11% of GDP (compared with 10.6% previously).

We forecast a slowdown in annual real GDP growth from 4.6% in 2006, and to 4.5% in 2007. One-off factors, such as higher food prices and sharp increases in excise duties in January 2006, will push annual average inflation up to 6.9% in 2006, although it should fall back to 4.3% in 2007 as oil prices ease.

The current-account deficit is forecast to decline gradually in 2007.