Bulgaria's current account (CA) deficit will worsen in coming months, says a UniCredit Croup Bulgaria forecast.
The pressure of domestic demand on exports will lead to significant worsening of the CA deficit, investor.bg reported.
Insufficient progress in the fight against corruption and organised crime threatens to dampen the mood of international investors and limit Bulgarias potential benefits from European Union membership, the UniCredit report said.
Specialists predict that the trends of growing GDP, growing investment and employment improvement will last only another year.
GDP growth surprisingly reached 6.2 per cent in the first quarter of 2007, exceeding expectations for a 5.5 per cent growth.
UniCredit predicts that investment will reach its peak in the first year of the countrys EU membership. Exports expected to increase insignificantly in the second quarter of 2007.
The import growth rate is expected to normalise as result of investment which will improve the economy's capacity.
Administratively regulated prices will remain the main source of pressure on inflation.
