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Bulgaria Downgrades GDP Growth Hopes over Arab World Unrest, Japan Earthquake Bulgaria's Finance Ministry has reduce its economic growth forecasts for 2012 and 2013 in light of the civil unrest in the Arab world and the aftermath of the devastating earthquake that hit Japan on March 11.
Thus, Bulgaria's economy is now expected to grow by 4.1% in 2012 instead of the original figure of 4.7%; in 2013, the growth is forecast to be 4% instead of the 4.9% previously expected, Bulgaria's Deputy Finance Minister Boryana Pencheva announced at a public presentation of the government's National Program for Reforms 2015 drafted in the context of EU's "Europe 2020" strategy.
In spite of the downgraded forecasts, however, Pencheva did point out that the situation in the Middle East might end up have some positive effects on the Bulgarian economy.
"The situation in the Middle East is really very complicated. This will affected the market of fuels and raw materials, which might have varying consequences for Bulgaria. Some of this dynamic might affect Bulgaria's export and its growth, and might also redirect investments from the Middle East to Bulgaria," she stated.
During the presentation of the National Reform Program, Pencheva also said the government is preparing legislative amendments to permit investing the money in the so called Silver Fund, or as it is more technically known, a state fund to guarantee the sustainability of the state retirement system. At present, the state is not allowed to carry out operations with the money in the Silver Fund.
Tags: Boryana Pencheva, Finance Ministry, National Program for Reforms 2015, Europe 2020 strategy, GDP, GDP growth, forecast, economic growth, Middle East, Arab world, Japan, Earthquake | 
