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The Bulgarian economy is recovering

The Bulgarian economy shows slight signs of sustainable recovery in 2013, as the weak domestic demand emerged lower growth this year from last year's reported growth in gross domestic product (GDP) from 0.8%.

The institution has reviewed to downgrade its forecast for this year's growth of the Bulgarian economy, from 1 percent forecast in May to 0.4 percent now, according to the report "Regional economic prospects."

For 2014 the Bank has also lowered its expectations of 2.5 percent in May to 2 percent at its current forecasts. The document also notes that the export of the country continues to improve.

Prices are stable, government debt is the second lowest in the EU and the country continued to perform very strongly by the standards of the EU from a fiscal point of view, despite the slight increase of the target budget deficit (up to 2% of GDP), notes the EBRD in its report.

The growth in Eastern Europe will continue to be recovered from the low levels recorded in 2012, but will remain modest, sums up the Bank in its assessment for the region.

The institution expects average growth in the region to be 1.6 percent this year, while the previous forecast was for growth of 1.4 percent.