The financial turmoil will have no real impact on the growth of Bulgarian economy this year but next year will, Bulgaria's Foreign Minister Ivailo Kalfin told Bulgarian National Radio (BNR).

While this year GDP growth will be on par with last year's, in the 7-7.1 per cent range, next year it will slow to 5-5.5 per cent, the foreign minister said.

"Yet five per cent growth is a decent rate," Kalfin said.

The crisis will trim the inflow of foreign direct investments, as will Bulgaria's export uptick observed this year, he pointed out as the major deterrents.

Bulgaria mainly exports to the European Union member states and the US, which suffered the worst blow from the ongoing crisis.  In addition, in times of financial insecurity FDI is slowing, which is a very objective process, Kalfin said.

Yet the process will run in parallel with slowing inflation in what would be the natural result from the governmental measures to this effect. The minister is confident the package seeking to stem inflation through a cut in public expenditures and stimulating competition through improved market mechanisms, would appease the market. The antinflationary measures will be coupled with a more conservative budget 2009.

The combination of the two would lead to a stable economy and a stable banking system, in which "Bulgarian citizens are interested the most", Kalfin said.

Bulgarian Economy and Energy Miniser Petar Dimitrov was consonant with the foreign minister, saying the financial crisis will cut Bulgaria's exports.

"Bulgarian exports, which for the first time this year grew so fast to outpace imports, will most probably slow again and harm Bulgaria's trade balance," Dimitrov said at the Youth Social Forum, dedicated to the country's exports. As of end-August, Bulgaria's trade balance came in at 8.3 billion leva.