Bulgaria's economy is developing steadily with a GDP growth rate of 6.0% over the last three months, according to a report of the Central Bank.

Growth rate for 2005 is projected to reach approximately 5.4-5.8%, the report says.

The favorable financial climate in Bulgaria keeps on attracting capitals as direct foreign investments and loans, report also says.

Bulgaria saw an inflation of 1.2% over the January-June period. In the next six months it is expected to jump to about 3.5%.

There is also an increase in the domestic consumption rate in the first three months, data show.