Economic growth in Bulgaria in 2018 will accelerate to 3.8% after reaching 3.6% in 2017, according to the European Commission's spring forecast.

"The Bulgarian economy will continue to grow steadily," the commission said. According to the report, domestic demand is expected to be the main driver of growth, while export inputs will remain negative. Inflation will continue to increase this year as a result of strong private consumption.

 

Positive trends in the labor market will continue with steady wage increases and rising employment, the European Commission said. It expects public finances to remain robust, backed by the favorable macroeconomic environment and despite rising public investment and wages. The forecast is for both the EU and the eurozone to grow 2.3% this year. Growth for both is expected to fall to 2.0% in 2019 when barriers in some countries and sectors become more tangible, monetary policy is in line with the real environment, and growth rates in world trade are slowing down, according to the spring forecast. The document notes that the growth rate in the EU and the eurozone in 2017 exceeded expectations, with a record value of 2.4% over the past 10 years.