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Oxford Business Group forecasts 10% inflation in Bulgaria

Date: 31.10.2007

Consumer price inflation in Bulgaria is expected to reach 10% this year, while real GDP growth will remain high at 6,4%, analysts from the Oxford Business Group said on Tuesday.

Next year, economic growth should remain high, albeit a slowdown caused by adverse global trends is possible, the group said in a report on Bulgaria's first year after joining the EU.

One of its main challenges the country faces is the deficit of qualified labour, especially in key sectors like information technologies (IT), said Andrew McDowell, Oxford Business Group editorial manager for Bulgaria.

IT, tourism and energy are the key sectors that Bulgaria should strive to develop further, he added.

Bulgaria remains one of the most attractive destinations for foreign investment, which stood at EUR 11,5 B over the past three years, with another EUR 4,7 B expected next year, foreign minister Ivaylo Kalfin said.

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