SOFIA, April 22 (MENA) - Bulgaria’s economic growth is expected to slow to 2.5% in 2025, down from 2.8% in the previous year, according to the spring edition of the International Monetary Fund (IMF)'s World Economic Outlook, titled “Policy Uncertainty Tests Global Resilience.”

The report primarily focuses on the shifting landscape of global trade policy following the introduction of new, higher tariffs by US President Donald Trump and the subsequent developments, the Bulgarian News Agency reported on Tuesday.

The IMF has maintained its previous forecast for Bulgaria, which was issued in October 2024.

This comes against the backdrop of a downward revision of global economic growth to 2.8%, down from 3.3% forecast in January.

IMF Managing Director Kristalina Georgieva warned of this slowdown last week, although she emphasized that she does not expect a global recession.

The IMF projected a modest GDP growth of 1.0% for the eurozone, in line with the winter interim forecast of 0.8–1.0%. The EU as a whole is also expected to see a slowdown, with projected growth at 1.2%, down from 1.4% in January.

Regarding inflation in Bulgaria, the IMF anticipated it will accelerate to 3.7% in 2025, up from 2.6% in 2024. This is 1.1 percentage points higher than its October forecast.

In a more positive development, unemployment in Bulgaria is expected to decline to 4.1% in 2025, down from 4.2% in 2024. The IMF’s autumn forecast had projected the unemployment rate to remain at 4.2%.

For the first time, the IMF has provided forecasts for Bulgaria in 2026, after issuing long-term projections for major economies. The IMF expected GDP growth to pick up to 2.7%, inflation to slow down to 2.3%, and unemployment to remain at 4.1%. (MENA)

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