Fiscal Prudence To Continue Despite Adverse Conditions

We have revised Bulgaria's 2012 fiscal deficit forecast to 2.1% of GDP, from 1.9% previously. We expect the deficit to narrow from our 2011 budget deficit forecast of 2.3% as the government remains fiscally prudent in the coming quarters. However, our lower real GDP growth outlook for the economy implies revenue growth is likely to slow in 2012, in turn weighing on the government's budget balance.

To read the full article, please choose one of the following options: