Bulgarian economic growth for the first quarter of 2007 is expected to reach 5.7 to 5.9 per cent and annual levels will hike to six per cent, analysis of the Centre for Economic Development (CED) showed.

The economic growth in 2006 was attributed to employment growth rather than growth in production, the report said as quoted by investor.bg.

Current account deficit for the first two months of the year went up by 3.4 per cent. Only 40 per cent of the current account deficit is covered by direct foreign investment.

The current account deficit is expected to stay below 18 per cent in 2007 and will probably remain at similar levels in 2008 and 2009.

Inflation decreased on annual bases. The total accumulated inflation for 2007 will fail to exceed 4.5 per cent following the tendency of further decrease in 2008 and 2009.

Unemployment will continue decreasing at low rates.

Economic growth of 6.1 per cent in 2006 was slightly lower compared to 2005 growth of 6.2 per cent. Specific for 2006 are intense increase of the added value within industry and slower investment rates.