Bulgaria plans to cut its fiscal deficit to 0.5 percent of gross domestic product by 2019 and protect its currency's peg to the euro, the Balkan country's mid-term budget forecast showed on Thursday.
Bulgaria plans to run a fiscal shortfall of 2.0 percent this year, then cut that to 1.4 percent in 2017, 1.0 percent in 2018 and 0.5 percent in 2019, according to the mid-term fiscal forecast.
Bulgaria ended with 2015 with a deficit of 2.9 percent of gross domestic product, exceeding the government's revised target of 2.6 percent. It expects a surplus of 2.1 percent of gross domestic product in the first three months of this year.
The finance ministry said that declines in exports and foreign investment will curtail growth in 2016, which is forecast at 2.1 percent. It expects growth to recover to 2.5 percent in 2017 and 2.7 percent in 2018 and 2019.
Growth remains well below the 6 to 7 percent expansion Bulgaria enjoyed before the economic crisis hit in 2009.
(Reuters)
