03.09.2013

Bulgaria\'s economy will grow less than forecast this year but should pick up pace next year. The reasons therefor are the unfavourable business conditions in Bulgaria and the rest of the European Union and political instability in the country, which forced ordinary Bulgarians to spend less and turn to saving instead, Minister of Finance Petar Chobanov stated in an interview for Reuters in Bled, Slovenia. He is there to participate in the meeting of the Advisory Board of the Center of Excellence in Finance (CEF) within the 8^th Bled Strategic Forum. The revised forecast shows that growth this year will be between 0.6 and 0.8 per cent, but for next year, we stay with the current forecast of 1.8 per cent, Chobanov said in the interview. \"We think we\'ll have improvements in domestic demand because we are expecting improvements in business environment will lead to more investments\".

According to Chobanov the budget deficit next year will be lower than this year and fiscal consolidation will be based on improved economic performance and implementation of some measures to improve tax collection and avoid tax evasion. \"There will be no austerity. We are trying to have in parallel good fiscal policy and restart growth\", he added. Chobanov also commented Bulgaria\'s intention to go to international financial markets next year because the Government has a global bond to repay in beginning of 2015.