SOFIA - Bulgaria's economy shrank by 3.8% on an annual basis in the fourth quarter of 2020, bringing the full year gross domestic product contraction to 4.2%, the statistics office said on Tuesday.

On a quarterly basis, the small and open economy grew by 2.2% in seasonally adjusted terms from October to December, less/more than the 2.1% initially estimated.

The finance ministry has expected the small and open economy to have contracted by 3% last year, while the central bank estimated the drop at 4.4% because of the shock of the coronavirus impact on businesses.

The finance ministry sees the economy rebounding to 2.5% growth in 2021, while the central bank expects growth to accelerate to 3.7%.

BULGARIA GDP Q4/20 Q3/20 Q2/20 Q1/20 Y/Y % CHANGE -3.8 -5.2 -8.6 +2.3 Q/Q % CHANGE +2.1 +4.3 -10.1 +0.4

(Reporting by Tsvetelia Tsolova) ((tsvetelia.tsolova@thomsonreuters.com; +359-888-311-435;))