The latest issue of the Monthly Report on Bulgarian Economy was released

Short-term business statistics kept its upward dynamics in May 2019, although at a slower pace. Growth in industrial production and sales, construction output and retail trade decelerated. In June the consumer confidence indicator reached the highest point in the year so far, as household were more optimistic about the future financial and economic situation and planned purchases of durable goods. The business climate indicator declined, after improving since end-2018. The economic climate tracer remained in the downswing area, suggesting deceleration of economic activity in the country.

Registered unemployment decreased by 0.2 pps over the previous month and reached 5.2% at end-June, as the unemployment outflow continued to surpass the inflow.

Consumer prices remained unchanged in June compared to a month earlier. The annual inflation rate decelerated to 2.3% yoy, as the positive contribution of energy, food and services prices narrowed. Core inflation was 2.5% yoy. 

The positive current account balance in April added up to the accumulated surplus. In the four-month period it reached 1.2% of projected GDP.

Credit to the private sector continued to accelerate in May, up by 7.1% yoy, with positive contribution from both corporate and households sectors. Weighted average interest rates followed a downward path. The price of corporate loans and mortgages reached historical lows and consumer loans also got cheaper on a month earlier.

Five months in a row the consolidated fiscal balance stood positive, reaching BGN 3 bn (2.6% of projected GDP) at end-May. Budget revenue represented 42.7% of the full-year plan, while expenditures equalled 35.3% of the plan.

The entire document can be downloaded here