World Bank: Optimistic scenario for Bulgaria – 2% growth

Sofia. According to a report of the World Bank, Bulgaria is among 6 EU member states that might undergo a symbolic economic growth of 0-2% during 2009, along with Romania, Poland, the Czech Republic, Slovakia and Slovenia, The Dnevnik Daily informs.

“The prognoses for the region are very uncertain, negative prospects dominate”, the bank warned.

Lars Christensen from Danske Bank Denmark disagreed with the anticipations of the World Bank. “To me, this seems like a fantasy scenario. We do not expect a positive economic growth in any of the countries in the region”, he said.

Analysts from Citibank assume Bulgaria will face economic challenges, but will manage to cope with them due to the currency board. According to the bank, alternative solutions the country might take, such as devaluating its currency or adopting the Euro, are not recommendable.

Citibank experts do not deny that all states in Eastern Europe suffer from the lack of financial resource and this represents a threat to the stability of the financial system. The World Bank appealed to European leaders last week not to abandon the economies of Easter Europe.

The first political victims have fallen. Latvian Prime Minister Ivars Godmanis resigned after being severely criticized for the economic problems in the state and the government’s inability to cope with them.

Serbia announced it might ask for another EUR 2 billion from the International Monetary Fund.

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