Bulgarian think tank Centre for Economic Development (CED) said it expected the country's economic growth to exceed 6% this year in real terms.

Following the expected slow-down in the economic growth in the last quarter of 2007, experts put it at 5.5% year-upon-year and forecast that it will resume its momentum in 2008, fuelled by the good results in Bulgaria's industry and services sector, the steady inflow of foreign investments and EU funds, as well as the impact of a few huge infrastructure projects.
Foreign direct investments in Bulgaria (FDI) will top EUR 6 B this year, the think tank forecasts.

The analysts recommend the implementation of structural reforms and urgent measures for improving the business climate.

Bulgaria's year-on-year inflation is expected to slow down to 6% at the end of December 2008 after it reached 12,5% at the end of 2007, a record-high figure for the last seven years.

The trade deficit is the other major problem the country's economy faces, accounting for the biggest part of Bulgaria's current account deficit.

The centre's economists believe that the current account gap growth this year will be tempered thanks to the expected rise in exports.

Under the currency board system in Bulgaria, in which the local currency is pegged to the euro, the country can afford a current account deficit of up to 30% of GDP before it has to begin worrying.