Text size

OECD: Second wave of Covid-19 will shrink the Bulgarian economy by over 8%

published on 6/12/20 7:05 PM

Photo: capital.bg

The Bulgarian economy grew before the pandemic, but in 2020 it is facing its most serious contraction since the late 1990s. In the most favourable scenario with the epidemic subsiding by the summer, its production will shrink by 7.1% in 2020, and in 2021 the economy will grow.

However, if the country is hit by a second wave of coronavirus, it will shrink its economy by about 8% this year and by another 0.3% in 2021. This is indicated by the forecast of the Organization for Economic Cooperation and Development for Bulgaria (according to the European Commission by 7.2% and according to the government by 3%).

According to the analysis, a restart of the economy may require more political support. Unemployment could rise, especially if the government's wage subsidy scheme ends in July without being replaced by new employment policies.

Последвайте ни и в Google News Showcase, за да научите най-важното от деня!

Radio Bulgaria News coronavirus economic growth economic recovery epidemic second wave

More from category

Bulgaria sending troops to Ukraine is out of the question, PM Glavchev assures

Bulgaria sending troops to Ukraine is out of the question , caretaker Prime Minister Dimitar Glavchev said at the beginning of his hearing in parliament. Glavchev was briefing MPs on Bulgaria's position at the upcoming NATO summit in Washington. In his..

published on 7/4/24 11:29 AM

GERB will no longer take part in negotiations, party leader says

GERB leader Boyko Borissov said that his party would no longer take part in negotiations and that the next step would be elections. Speaking on the sidelines of Parliament, Borissov pointed out that after the rejection of GERB's government..

published on 7/4/24 11:06 AM

No government likely with PP-DB mandate, MP Lena Borislavova says

Upon entering Parliament, Lena Borislavova of the PP-DB commented on Delyan Peevski's indication that he would expel the rogue DPS MPs as his move to make the DPS a third political force. Yesterday, 30 DPS deputies supported the GERB-SDS proposal for a..

published on 7/4/24 10:40 AM