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

Short-term business statistics reported strong performance in the beginning of the second quarter. Industrial production and sales as well as retail trade gained speed, while the construction output returned to growth. Both the consumer confidence and the business climate indicators improved in May on the back of better expectations.

Employment went up by 1.2% yoy in Q1 2018 supported by higher labour demand in industry and services. Real productivity growth reached 2.3% and compensation per employee increased by 8.5% yoy. In May, registered unemployment decreased further to 6.1%, its lowest value since end-2008.

The annual inflation rate (HICP) reached 2.3% in May as the positive contribution from higher unprocessed food and energy prices increased. The core inflation accelerated slightly to 2% yoy.

In March, the overall current account balance came in negative at EUR 89.6 mln, as the deficit narrowed by 70% yoy. The growth in goods export (6.4% yoy) surpassed the increase in import (0.7% yoy) for the first time in 2018 and led to a lower monthly trade deficit. Gross external debt stood at 62.3% of projected GDP and also improved on a year earlier.

Credit to the private sector continued to accelerate in April, up by 6.6% yoy vs. 5.6% yoy a month earlier, with strong positive contribution from consumer loans and mortgages.

The price of corporate new loans and mortgages decreased in April, down by 41 bps and 7 bps, respectively, while that of consumer loans was up by 81 bps. Weighted interest rate on new time deposits went down by 1 bps in April due to the lower price for attracted funds from corporates.

According to monthly data on a cash basis, the budget balance on the consolidated fiscal programme for the first four months of 2018 was positive, amounting to BGN 1.3 bn (1.3% of projected GDP). The surplus resulted from higher revenue over expenditure on the national budget (1.5% of GDP), while the EU funds account recorded a minor deficit (0.2% of GDP). 

 

The entire document can be downloaded here.