National Bank predicts increased inflation and lower economic growth

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Lower economic growth and an increase in inflation is predicted by the National Bank, which made a downward revision of the April projections. Autumn projections show that the year would end with inflation of 14.3 percent, and next year a gradual slowdown to the level of 8 to 9 percent is expected. In the medium term, inflation will moderate to 2.4 percent in 2024 and 2 percent in 2025. A quarterly decline in the economy is not predicted.

According to the basic scenario, the growth rate for this year would be 2.3 percent, and for the next year 2.6 percent, while according to the second scenario, the growth this year would be around two percent and would slow down to 1.8 percent next year. The risks surrounding growth remain downward and will largely depend on the movements in the European economy, the NBRM informed on Wednesday.

 

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