An upward revision of the International Monetary Fund (IMF)'s economic forecasr for Bulgaria has been announced in a report by the organization.

The move reflects "improved sentiment and rising private consumption," the IMF says.

The country's GDP is set to grow 3% in 2016 and 2.8% next year, according to the data which confirms an earlier statement by the head of the regular mission of the fund to Bulgaria, Reza Baqir.

According to an earlier forecase, projected growth for both 2016 and 2017 was at 2.3%.

However, the IMF was warned that "medium-term potential growth is below the average of similar European countries, constrained by the unfavorable demographic trends, slow implementation of structural reforms and, consequently, a modest outlook for private investment."

Deflation measured 1t 1.6% will be registered for 2016, down from a 0.2% inflation forecast made in April.

Next year, inflation of 0.6% will be posted, compared to 1.2% in the April forecast.

Unemployment of 8.6% is expected (8.2% projected in April) which will shrink further to 7.1% (7.9% in the April forecast). The share of jobless people fell below the 10-percent mark in March.