Bulgaria’s economic growth would reach 6.4 per cent by the end of 2007, based on the data revealing the country’s progress for the first half of the year, independent analytical company Industry Watch said, as quoted by investor.bg on October 22.

Industry Watch expected to see the growth level preserved in 2008, although the end-2008 figure was to be 6.3 per cent. The forecast differed from the previous fears of overheating of the economy. Despite the expected accelerated retail prices’ inflation, surpassing the prognosis from earlier this year, there was no risk for the monetary and fiscal stability of Bulgaria, Industry Watch said.

The think tank pointed out as important the fact that none of the leading political forces in the country had expressed any intention of abolishing the currency board arrangement. A considerable increase was expected in the balance of payments’ current account, which was to be in an accord with the growth in the capital inflow in the economy, investor.bg said.

The budget surplus at the end of 2007 was to remain considerably high at 3.7 per cent of the gross domestic product (GDP), with a serious increase in budget revenue, resulting in reduction in taxes, and health and social security contributions. Industry Watch forecasted 2.8 per cent of GDP budget surplus for 2008.