Moody's: Stable outlook for Bulgaria's economy

The international agency Moody’s has confirmed Bulgaria’s credit rating and a stable outlook.

“The strong fiscal position, stable economy and broad agenda for reform in Bulgaria maintain the credit rating of the country at a Baa2 level with a stable outlook,” read the annual report of Moody’s, cited by BTA.

“Bulgaria’s credit rating is underpinned by long-term indicators, which are relatively favourable, compared to other countries, and the stabilisation of its internal position,” stated Marco Zaninelli, Moody’s Assistant Vice President and co-author of the research.

It is predicted that fiscal consolidation will continue in 2016 and next year.

“Moody’s expects Bulgaria’s budget deficit to decrease to 1.3% of GDP in 2016 and to 0.9% in 2017. The debt-GDP ratio will increase insignificantly in 2016 before stabilising next year and beginning to decrease in 2018.”

The agency forecasts a slight slow-down of Bulgaria’s economic growth to 2.8% in 2016 and 2017 from the 3.5% recorded for 2015.

The rate of increase of exports will, however, be lower than the rate of increase of imports, warned Moody’s.