Bulgarian Family Eats as Much as One Single European The living expenses of a Bulgarian family equal those of a single western European. According to Eurostat statistics for 2007, the Bulgarians are the poorest people in the European Union. The GDP per capita in Bulgaria is 37% of the average levels for the EU. Prices in Bulgaria, however, are 40% of the average for the Union. The result is that foods, services and goods the Bulgarians consume make about 40% of the average for a western European. A family in Bulgaria is 2.7 people on the average. Thus, clothes, foods, cars, home appliances, health services and other services of a whole family in Bulgaria equal to the consumption of a single person in the rest of the EU member states.
Source: Standart (06.01.2009)

Unemployment in Bulgaria – lower than the average European unemployment Unemployment in Bulgaria does not exceed 6% as for the moment and is lower than the average European unemployment, said deputy social minister Dimitar Dimitrov. The government estimates are for unemployment level of 7.4% this year as it is expected to be higher in the second quarter of the year. The most hit companies would receive state aid of BGN 6.7 mln in order to keep their employees. The programme would include 18,000 people that face layoff.
Source: news.bg (07.01.2009)

Industry production shrank 5% in November According to the preliminary data, the industry production in November 2008 is 5% lower as compared to October. A drop down of 22.5% is registred for the Chemical industry, 19.1% for the production of wood products (excl. furniture), 14.9% for the production of electrical machinery and equipment and 12.5% for production of metal product (excl. machinery and equipment).
Source: Darik Radio (10.01.2009)

In November 2008, the construction branch reported drop by 14.9% on a monthly basis, data of National Statistical Institute show. The greatest drop (15.7%) is in building construction that holds 68% of the sector followed by infrastructure with 13.2%. Yet, there is slight growth by 1% compared to November 2007. In 2009, growth in the sector by 2-3% is expected with the highest share of infrastructure.
Source: Pari (12.01.2009)

Bulgaria 11-mo trade deficit hits 24% of GDP Bulgaria's trade gap for the first 11 months of 2008 was 16 billion leva, or 24 per cent of projected gross domestic product for the year, the country's statistics board data showed on January 12. In November alone, the deficit was 1.46 billion leva, National Statistical Institute (NSI) data showed. All figures are using free-on-board, which include the prices of the goods and transportation to the first border, but not insurance and further transportation costs. November was the first month in which NSI data showed a strong slowdown of industrial production and sales as a consequence of the global financial crisis, but the impact on the trade deficit was moderately positive. Although exports fell, by 16.4 per cent month-on-month, the rate of decrease was slower that the fall in imports, which fell by 19.7 per cent. NSI did not provide comparative trade deficit data for November2007.
Source: Dnevnik (12.01.2009)

12.3% inflation in 2008, deflation in December A deflation of 0.2 percent is being reported by the National Statistics Institute for December. In one year prices have increased by 7.8 percent. In December the price of transport, alcohol, furniture and services in the entertainment sector has decreased. The prices of perishable and non-perishable cold cuts, vegetables, mineral waters and non-alcoholic beverages have increased. A small increase of physicians' and dental services is registered. In December compared to November, food products mark a decrease of 0.3%, while alcoholic beverages and tobacco products register an increase of 0.2%.
Source: news.bg (14.01.2009)

22% increase of salaries in 2008 The total income of one person from a household last year has increased by more than 17%. The statistics reports an increase of work salaries by nearly 22%, BNR announced. The absolute increase of salaries last year per person from a household is between BGN 132 and BGN 160, the statistics calculates. For pensions the increase is from BGN 64 to BGN 73 on average per person. Income from self-employment decreases surprisingly. Expenditures per person from a household have also increased by an average of 12%.
Source: news.bg (15.01.2009)

Bulgaria's Foreign Trade Gap Reaches EUR 8 Billion Bulgaria's foreign trade deficit in the period January-November 2008 grossed more than 8 billion euro. This amount equals 24 percent of this country's gross domestic product and exceeds by 1.5 billion euro the export-import gap of the same period in 2007, BNB data show. From January to November, Bulgaria scored an export of 14,328 billion euros, which was largely overtaken by the 22,5 billion euros of import. The good news is that export growth rates tend to outpace import. The former notched up a 3.1 percent increase from 12,4 percent of GDP in 2007 to 15,5 percent in 2008 and the latter - an almost imperceptible rise given the minor difference between the 19,4 percent in 2008 and the 19,1 percent in 2007. Bulgaria's current account deficit in January-November last year reached 21,9 percent of GDP or 7,465 billion euro, BNB's data indicate. "Indeed an unpleasantly large figure, which makes Bulgaria's economy rather vulnerable," analysts from the international financial institutions commented. Bulgaria's current account deficit reached 838 million euros in November alone. A widening trade gap is the main reason for the expanding current account deficit, BNB experts said. In 11 months in 2007 Bulgaria's current account deficit totaled to 18,6 percent of GDP. A single year after it deepened by 3.3 percentage points. Bulgaria struck a positive balance of nearly 11 billion euros in its financial account and marked a financial account surplus increase of 850 million euros. In 11 months the foreign direct investments reached 5.274 billion euro, which is a bit worse than the 5.963 billion from the previous year. Now they barely cover 70 percent of the current account deficit unlike 2007 when the covered in completely. BNB's reserves grew by 2.234 billion euros in 2008.
Source: Standart (16.01.2009)

EC: Bulgaria to Expect 1.8% Economic Growth in 2009 Realistically, Bulgaria's GDP growth would not go over 1.8 percent in 2009, but would get to 2.5 percent the next year, according to the preliminary economic prognoses of the European Commission. The expectations for 2009 are that Bulgaria's economy would be less active due to decreased internal demand and tightened crediting conditions; that inflation would drop from 12% in 2008 to 5.4% this year and 4.8% in 2010; that unemployment will grow from 6% in 2008 to 6.3% and 6.4% in 2010 and 2011. In case, the presumption that the share of export and the prices would dwindle proves right, it would be normal if Bulgaria's trade deficit shrinks. The now current account deficit was to fall well under 20%, the EC's experts predicted for Bulgaria.
Source: Standart (20.01.2009)

Housing prices down 4% Y/Y Q4 2008 Home prices in Bulgaria’s regional cities jumped almost 25% in 2008 compared to 2007 to an average of BGN 1,363 per square metre, showed data of the National Statistical Institute. The uptrend held through October, but prices dropped 4.1% in the third quarter from the previous three months. The data excludes newbuilt, houses and luxury apartments and are based on the prices of sold properties. The statistics are unrealistic, said Strahil Ivanov, owner of real estate agency Yavlena, noting that prices rose in the first quarter and have since then slumped by 10 to 20%. A survey of Bulgarian Properties revealed that last year property transactions were struck at 26% higher prices on average than in the previous year. The company’s operating manager, Polina Stoikova, explained prices were rising by October and the slid 15-20% from the early months of the year as buyers opted for higher-class properties. According to NSI, flat prices in Sofia jumped the highest, gaining almost 47.8% last year. In Lovech, Pleven, Plovdiv, Rousse and Yambol prices rose around 30%. In the third quarter prices dropped in 28 out of the 23 regional cities, most notably in Veliko Tarnovo, Pleven and Targovishte, which saw falls of more than 11%.
Source: Dnevnik (26.01.2009)

Bulgaria Registers Lowest Annual Unemployment Rate in 18 Years The lowest annual unemployment rate in Bulgaria for the last 18 years has been registered in 2008, the Bulgarian National Employment Agency reports. The average monthly number of unemployed individuals is by 18,6% or by 53,262 lower compared to 2007. About 217,600 unemployed started work in 2008 while the majority of them have used the Bulgarian labor bureaus as intermediary. In 2008, the Bulgarian labor market had offered a total of 238,000 job positions. 22,000 new job openings in the real economy have been announced through the labor bureaus. The National Employment Agency has invested BGN 60 M in employment programs and measures. 25,000 unemployed individuals have received professional training along with 3,485 workers.
Source: Darik Radio (27.01.2009)

The number of foreign tourists who visited Bulgaria in December 2008 are 5.5% less compared to the same month of 2007, shows the data of the National Statistical Institute. The largest number of foreign citizens (49.5%) visited Bulgaria for an excursion or holidays. The percentage of foreigners who just travelled through Bulgaria is 33,2%. Some 2.4% of the foreign citizens visited friends or relatives in Bulgaria while 6.6% travelled to this country to do business. The number of Bulgarians who travelled abroad has also dropped by 9.1%. The number of Bulgarians flying to the USA or Canada is 55% less.
Source: Standart (28.01.2009)

Decline in all sectors of economy The business climate in Bulgaria reports decline of 0.6% in January, National Statistical Institute said. All branches of economy were affected - industry, construction, commerce, and retail. The slowest drop of 0.2% is in the tertiary sector, while company managers report of 10.1% decline compared to December 2008. Retail trade dipped by 1.3%, despite some rise of sales in the last three months.
Source: Pari (29.01.2009)

Producer prices dropped one per cent year-on-year in December 2008 Falling producer prices in the last five months of 2008 shed previous increases and the total index fell one per cent year-on-year in December 2008. The latest data by the National Statistical Institute revealed the decrease sped up from 0.1 per cent month-on-month in August to 5.8 per cent in December compared to November. Experts explained the summer drop with seasonal factors but in September the real economy gave in to the financial crisis causing investors to have second thoughts and hurting demand in the world’s biggest economies. Bulgaria’s total producer prices index tracks changes in producer prices on the domestic market plus producer prices of products sold abroad. The processing industry, which carries most weight in the index, registered a 7.2 per cent decrease compared to November. Metal ore mining prices slumped by 10 per cent, and production and casting slid 11.7 per cent. Prices of chemical products were down 5.8 per cent. Food and drink prices suffered the mildest blow falling only 0.7 per cent. The domectic market indicator slipped 3.9 per cent below November’s level. The processing industry reported a 5.1 per cent decrease, while ore mining plunged by 16.6 per cent. Experts say domestic prices show smaller fluctuations as foreign partners sign more flexible agreements. However, Lachezar Bogdanov of local think-tank Industry Watch said that the trend was caused by the imperfections of the Bulgarian market, which allow producers to take advantage of administrative hurdles faced by foreign rivals.
Source: Insurance.bg (30.01.2009)

1.7% higher industrial production in December According to preliminary data in December 2008 industrial production in Bulgaria is 1.7% bigger compared to the previous month, the National statistics institute announced. An increase has been registered in the production and distribution of electric energy, gas and water - by 15.6%, in the same time the index of the processing industry decreases by 1.7%. The increase has been registered in the production of metal products, without machines and equipment, by 37.3%, in the production of wood, paper, cardboard and paper and cardboard products by 10.2%, the production of chemical products by 6.7%. Compared to December 2007 industrial production in December 2008 is 8.3% less. In the processing industry it increases by 10.2%, while in the extraction business - by 25.1%. most significant is the decrease in the extraction of metal ores - by 64.9%.
Source: Insurance.bg (11.02.2009)

Negative balance reported for 2008 The export of the country amounts to 29.9 million levs, while the import - to 49.5 billion levs. This is preliminary data from the National statistics institute. The statistics covers the period from January to December 2008 and is FOB prices. The total trade with products of the country on current prices amounts to 79.4 billion levs. Compared to the previous year the increase of trade is by 14.7%. During the year, trade was the most active in June, July and October. In 2008 the export of products (FOB prices) amounts to 29.9 billion levs and increases by 13.3% compared to the previous year. The import of products (CIF prices) amounts to 49.5 billion levs, or 15.7% more than the previous year. In 2008 the tendency of exceeding import over export continues. The value of import products is 66% bigger than the value of export products.
Source: news.bg (12.02.2009)

National Statistical Institute announced 0.8% monthly inflation in January, which is the lowest ratio in that month for the last three years. The annual price growth of goods and services compared to January 2008 is 7.1%. Data show rise in price of food (1.9%), vegetables (the highest with 15.6%), fish, sausages and domestic bills. Clothes and shoes prices fell by 1.5% and transport dropped by 2.4%.
Source: Pari (16.02.2009)

6% increàse of the Bulgarian economy in 2008 The GDP of Bulgaria has increased by 3,6% to BGN 18,059 billion for the fourth quarter of 2008 compared to the same period of the previous year, data by the national statistics shows. For the entire 2008 the real growth of our economy is 6 percent compared to 2007. The volume of GDP for 2008 barely exceeds BGN 66 billion. The greatest is the increase of the added value in the agriculture sector - 23,4 percent more compared to 2007. For the last 3 months of 2008 the trade balance remains negative - minus 26,6 percent of GDP. For the entire year the indicator amounts to 22,9 percent from the volume of the economy.
Source: news.bg (17.02.2009)

Bulgaria Household Income Goes Up by 11% Household income in Bulgaria has increased by 11% - up to an average monthly BGN 376 per person in December of 2008 compared to December of 2007, data published by the Bulgarian National Statistics Institute (NSI) reveals. The average amount of the income per person in a household coming from the monthly salary in Bulgaria has gone up by 17% to reach BGN 168 monthly. Retirement income in Bulgaria has increased by 13% - up to BGN 75 per person per month in December of 2008 compared to December of 2007. In the same time, household expenses have increased only by 4,5% in December of 2008 compared to December of 2007 to an average of BGN 332 per person. The expenses have increased the most in the health care and transportation sectors - with 20% or BGN 14 and 11% or BGN 33, respectively. Water, electric, and heating bills maintain a stable level of BGN 50 per month per person. Expenses for food and non-alcoholic beverages have been slightly lower - down by almost 2% to 118 BGN per person per month. Bulgarians spent the most money on bread, followed by meat and fruit.
Source: Darik Radio (17.02.2009)

Economically active population in Bulgaria aged 15 - 64 is 3,486,400, according to data of the National Statistics Institute for the third quarter of 2008. The economic activity rate for the population in that age group is 67.8 percent, or 0.7 percent points higher than in the fourth quarter of 2007. Under the sex criteria, the ratio of economic activity is 72.8 percent for men and 62.8 percent for women. In the fourth quarter of 2008 the ratio of population employment, 15 - 64 years, reached 64.3 percent from 62.9 percent for the same period of 2007. The employment rate increased by 1.8 percentage points for men and by 1.1 points for women, reaching respectively 69.2 and 59.6%. The employment rate in cities was 67.4 percent and in rural areas - 55.6 percent. The employment rate for the population age 55-64 is 47.0 percent or 3.5 percentage points more than in the fourth quarter of 2007 were 56.8% Employed men aged 55-64 and 38.6 percent of women of the same age. Economically inactive persons aged 15-64 were least 1 658 700 or 32.2%. The coefficient of economic inactivity (15 - 64 years) for women is 10.0 percentage points higher than men (respectively 37.2 and 27.2%). Of the inactive people aged 15 –64, 573,900 or 34.6% do not want to work or do not actively seek jobs because they attend school or training courses. 241,900 or 14.6 percent are inactive because of personal or family reasons, incl. care for young children. Discouraged persons aged 15 - 64 years are 150,900, or 9.1 percent of the economically inactive in the same age group. They are 31.6 thousand less compared to the fourth quarter of 2007.
Source: BGNes (24.02.2009)

Average annual wage grew 22% to BGN 6288 in 2008 The average annual wage in Bulgaria in 2008 is BGN 6288. Compared to 2007 in nominal terms the average wage rose by 21.7 percent, preliminary data of the National Statistical Institute (NSI) indicate. Growth and pay for the fourth quarter are similar, as an annual increase of 20.2% is observed for the period. According to the preliminary data, workers in employment and service for 2008 increased by 1.47% compared to 2007 to 2.42 million. Reduction in economic activity was reported in the Construction sector (4.04%), Mining (4.17%) and Education (3.53%). Workers in employment and service in the sectors Financial intermediation, Hotels and restaurants and Trade, repair of motor vehicles, personal and household goods, increase. Data indicates the monitoring of employees, worked time, funds for salaries and other labor costs, which are officially declared. There may be deviations from the real wages in the sectors concerned, provided that the total amount of the received wages is not declared.
Source: investor.bg (04.03.2009)

February turned out less favourable for business than January when a lot of factories stopped work due to the gas crisis, business survey of National Statistical Institute shows. According to the data, business climate in February 2009 dropped by 3.3% compared to previous month, especially in industry, tertiary and retail sectors. Productivity dipped by 11.1%, orders by 4.7%, and retail by 6.6% compared to January.
Source: Pari (04.03.2009)

Economy grew in Q4’2008 by only 3.6% In the last 3 months of 2008 our economy has slowed greatly, and its growth is only 3.6 percent over the same period in 2007, according to express data of NSI. By late Fall, the gross domestic product of the country grew by 6-7% per quarter and ministers seemed to not hear the dark warnings of the business, opposition and foreign analysts that the global financial crisis will hit severely the Bulgarian enterprises. This presumption led to a forecast of 4.7 percent GDP growth in 2009, a year which is expected to be critical for Bulgaria. The first symptoms of the crisis in Bulgaria were felt in October. For the first, second and third quarter of 2008, the economy growth was 7 percent, 7.1 percent and 6.8 percent. Results for the last quarter of 2008, however - 3.6 percent, is twice as weak, but the crisis will deepen, given that the major trading partners of the country enter a recession. However, due to the strong months as a whole, the economy in 2008 reported a 6 percent growth, as the current volume of GDP for the year is BGN 66.1 billion. NSI data show that currently only agriculture is still standing - in the last quarter of 2008 value added in the agriculture sector is 20.6 percent more compared to a year earlier. In services, however, there is only 3.2 percent increase and the value added in industry is even lower by 0.1%. The other bad news is that exports decreased (by 6.8 percent), faster than imports, which has shrank in the period October-December by 3.7 percent on an annual basis.
Source: Sega (06.03.2009)

National Statistical Institute reported growth of new residences in the country for 2008. Compared to 2007, number of residence buildings grew by 9% (or 2,939) and of apartments in them by 11.5% (or 21,041). Most new buildings were in Varna and Bourgas regions followed by Plovdiv and Sofia. The slowest housing construction was registered in Kiustendil with only seven finished building with 69 apartments
Source: Pari (09.03.2009)

Unemployment to edge higher in February – official Unemployment in February 2009 is expected to climb to 6.69 per cent, compared to 6.05 per cent a month earlier, Rossitsa Stilyanova, deputy head of the state Employment Agency said on March 9 2009. "We have no interest in hiding unemployment numbers," she said, answering a question whether these expectations were real given United Nations' forecast for tens of millions losing their jobs worldwide in 2009. According to her, Bulgaria could be somewhat of an exception to the global trend. "The number of unemployed people has gone down by 21 000 compared to February 2008," she said. Nevertheless, amid endless reports about Bulgarian companies cutting jobs and closing entire units, Stiliyanova said that the agency was ready to accept applications from companies in accordance to the agency's existing action plan to cope with the economic crisis. The plan envisages for employers to get a relief from the state for every worker who has been asked to work part-time. The idea is that instead of cutting jobs employers to shrink working time. Every worker who has been asked to work half-day, on salary cut in half, would get 120 leva from the state for three months, Stilyanova said. For this to happen, employers must have at least five per cent of their staff working on half-day shifts, she said. The average monthly salary in 2008, according to Government statistics, was 524 leva. "The relief is available for three months only because we don't want employers abusing the plan," she said. This means that should companies apply in March, they can rely on the state aid until end of June when the country is about to have its regular elections for Parliament.
Source: profit.bg (10.03.2009)

Bulgarian Industrial Output Falls 19% in January 2009 Bulgaria's industrial output fell by 19% in January 2009 month-on-month, after rising by a monthly 1.7% in December, preliminary data of the National Statistics Institute (NSI) showed. This is the fourth drop in a row, causing the index to go below the 2006 levels. The industrial output index is mainly determined by the indicators of the processing industry, which dropped by 21,4% in January, compared to December 2008. There is a 66,5% decrease in the production of metal goods, excluding machines and appliances. In the production of non-metal goods the drop is by 42,1%, and in the food processing industry by 24,8%. The pharmaceutical industry registered an increase of 211,2%. In January 2009, industrial production decreased by 13,3% compared to January 2008. In January 2009 the turnover of industrial production registered a 30,4% decrease compared to December 2008, and the production of electrical and heat energy, and gas-like fuels dropped by 7,6%.
Source: Darik Radio (11.03.2009)

Bulgaria's balance with the EU for 2008 is negative Bulgaria's balance with the EU in 2008 is negative, as import exceeds export by more than BGN 10 billion, preliminary data on the foreign operations with partners from the EU for the past year shows, the National Statistics Institute announced. The preliminary analysis of 2008 shows that the tendency for the main part of the foreign flows of Bulgaria to be directed towards the EU continues. More than 60% of the merchandize, exported by Bulgaria, is directed towards the Community or these are deals worth almost BGN 18 billion, while the imported merchandize is 57% of the value of the total import or BGN 28 billion. Compared to 2007, the export for the EU has increased by 11,8%, while import - by 12,1%. In 2008 the major trade partners of the country within the EU are Germany, Italy and Greece. For these countries Bulgaria exports 46% of the merchandize, traded in the EU, while the share of the imported from these countries merchandize is 44%.
Source: Darik Radio (11.03.2009)

Bulgaria reports 6% economic growth for 2008 Bulgaria's economy grew by six per cent year on year in 2008, dragged down by the fourth-quarter slowdown to 3.5 per cent, half the figure recorded in the last three months of 2007, National Statistical Institute data showed. The fourth quarter figure was lower than the 3.6 per cent estimated by the NSI in February, but was enough to make the country the fastest growing economy in the European Union. More than half the bloc's member states are in recession, but Bulgaria has so far avoided the worst of the downturn. The sharp drop in the last three months of the year pushed economic growth below the 6.4 per cent targeted by the Cabinet for 2008. Through the first nine months of the year, Bulgaria's economy grew by seven per cent. In real terms, Bulgaria's gross domestic product (GDP) in 2008 was 66.73 billion leva or 34.12 billion euro. Per capita GDP was 8711.5 leva or 4454.1 euro. Agriculture posted the highest growth, 24.6 per cent, after a bumper harvest, but the sector accounts for only six per cent of GDP. Services accounted for half of the total GDP, growing by 5.9 per cent, while industry posted a three per cent increase. Consumption, which has been the main driver of economic growth in recent years, posted a 3.9 per cent increase for the year and only 1.4 per cent in the fourth quarter.
Source: Darik Radio (12.03.2009)

The monthly inflation rate in Bulgaria in February was 0.1%, reported the National Statistical Institute. This is the lowest rate from November to now, as early as the Autumn of the last year, after the beginning of the global financial crisis, the high by then inflation decreased below 1% per month. The data show that the annual inflation rate in February compared to the previous year was only 6%. In the middle of the last year this index exceeded 10%, and the annual inflation at the end of 2008 became 7%.
Source: Sega (13.03.2009)

3.360 million people are the employed in 2008 according to the National Statistical Institute. The economically active people are more than 3.5 millions, which is almost 68 percent of the whole population. Compared to 2007 the ratio of the economical activity of people aged between 15 and 64 years increases by 1.5 points. The employment of women of the same age is 59.5% and of men – 68.5%. In 2008 the number of unemployed was 1.9 million people.
Source: Darik Radio (17.03.2009)

Bulgaria's 2008 Jobless Rate Down to 5.6% Bulgaria's unemployment rate in 2008 fell to 5.6%, down by 1.3% from the previous year, official statistics showed on Monday. Employed Bulgarians, aged between 15 and 64 years, numbered 3,504 million in 2008, up by 1.5% over 2007, according to data of the National Statistical Institute. They account for 64% of all the Bulgarians, which marks an increase of 2.3% in comparison with the previous year. A total of 199,700 Bulgarians were registered as unemployed last year with unemployed men (103,900) prevailing over women (95,800).
Source: ipo.bg (17.03.2009)

Bulgaria Jobless Rate Shows No Signs of Easing Bulgaria's unemployment rate continued to increase for the fifth month in a row in February, official statistics showed. A total of 248,000 Bulgarians were registered as unemployed in February, up by 7,000 over the previous month. The average jobless rate for Bulgaria stood at 6.69%, going up by 0.9% since September when it notched up for the first time. Experts attribute the increase in unemployment rate to the deterioration in the economic situation, the reduction in the work load of companies in the textile, construction and wood-processing sectors, where lay-offs are widespread. Earlier in the day Deputy Labour Minister Dimitar Dimitrov announced that the number of registered unemployed has decreased over the same period last year, but added a substantial increase can be expected in the next months.
Source: Novinar (20.03.2009)

In the last quarter of 2008, total expenses of employers for one working hour rose by 19.1% compared to the same period 2007. The growth is 18.2% in the industry and 13.6% in tertiary sector. The highest growth by 25.2% is in the construction branch. The main way is by the increase of salary.
Source: Pari (23.03.2009)

Bulgaria Sees Soaring Unemployment Over 250,000 Bulgarians are seeking a new job, according to data of the Employment Agency. Unemployment rate in Bulgaria reached 7% last month. The raging global financial crisis and the expiration of the labor contracts of many temporarily employed Bulgarians are the main reasons for the hike in the unemployment rate. According to calculations of the agency, there are eleven candidates for each available job position in Bulgaria. The highest unemployment is registered in the sectors of building, tourism and textile industry.
Source: Standart (23.03.2009)

Bulgarian business climate improves The overall indicator for the Bulgarian business climate marks an increase with 2.8 points in March compared to February 2009 after the registered decreases in the last few months. Except for the industry where the decrease is continuing, in all other sectors – construction, retail trade, mark relatively good grades of the business climate. Industry In March 2009 the complex indicator “business climate in industry” continues to drop down for a 5th successive month and loses 2.1 points from its level in Feburary. The percentage of entrepreneurs with negative thinking for the current and the expected business condition of the enterprises grows. The research in March shows that the production activity continues to shrink and the expectations of the managers for the next three months are in the same direction. In the last month, the securing of the production with orders from Bulgaria and abroad is worsening. The insecure economic environment and the limited internal and external market remain the main factors troubling the activities of the industrial enterprises in March and the related to them problems grow compared to February. Regarding the sales prices for the first time in March the enterprises which envisage reduction in the prices are more than those which plan a price increase in the next months. The result is a negative balance indicator (-3.7%). Construction The economic situation in the field of construction marks a positive change in March. The complex indicator “business climate” increased with 4.3 points compared to the previous month because of the better assessments of the managers for the current business condition of the enterprises and the more optimistic expectations for six months ahead. The forecast of the construction entrepreneurs for construction activities in the next three months are also in positive direction. The construction managers continue to point the insecure economic environment and the financial problems as main difficulties faced by their companies. Retails The complex indicator “business climate in retails” increased with 7.9 points compared to February which is due to the increased optimism of the retail traders regarding the expected business condition of the enterprises in the next six months. According to data from the business research the volume of the sales in the last month has decreased considerably but the expectations for the next three months are for it to stop dropping down. At the same time the expectations for the level of orders to the suppliers in the next three months are more favorable. Regarding the factors which are impeding the retails activities, the insecure economic environment is pointed first followed by the insufficient demand and the competition in the field. The sales prices in the retails are expected to remain unchanged. Services In March the “business climate in the field of services” indicator has climbed up with 5.8 points over its level in February. There is a certain decrease in the pessimism of the managers regarding the current and the expected future condition of the enterprises in the next six months. According to the managers the demand for services continues to diminish. However, the forecast for the next three months is positive. Regarding the personnel the companies inform that have reduced it and they expect the reduction to continue in the next months. The insecure economic environment increases its negative effect in March and is first among the factors, which hurdle the enterprises’ activities. Competition in the branch is the second biggest problem for them. In March the balance of the expectations for the prices in the service sector remains negative.
Source: news.bg (30.03.2009)

Bulgaria Leads EU in Unemployment Rate Fall The seasonally-adjusted unemployment rate in the European Union reached 8,5% in February 2009. The data was released Wednesday by Eurostat, the Statistical Office of the European Communities. In comparison, the unemployment rate was 8,3% in January and 7,2% in February 2008. The unemployment rate in the entire European Union (EU) was 7,9% in February 2009, compared with 7,7% in January. It was 6,8% in February 2008. Eurostat estimates that 19 156 million men and women in the EU, of which 13.486 million were in the Euro Area, were unemployed in February 2009. Compared with January, the number of persons unemployed increased by 478 000 in the EU and by 319 000 in the Euro Area. Compared with February 2008, unemployment went up by 3.019 million in the EU and by 2 125 million in the Euro Area. Among the Member States, the lowest unemployment rate was recorded in the Netherlands (2,7%), and the highest rates in Spain (15,5%), Latvia (14,4%) and Lithuania (13,7%). The largest unemployment rate falls were observed in Bulgaria (6,2% to 5,5%) and Slovakia (10,2% to 9,8%), and the highest increases in Lithuania (4,4% to 13.7%), Latvia (6,1% to 14,4%) and Spain (9,3% to 15,5%).
Source: Darik Radio (01.04.2009)

After the difficult January, industry begins to recover in February and production grew by 5.6%, preliminary data of National Statistical Institute show. Compared with February 2008, however, there is a drop by 17.7%. The total industrial index grew due to the processing industry whose index in February 2009 increased by 10.3% compared to January. Sales incomes of companies rose by 4.4% in February compared to January.
Source: Pari (13.04.2009)

Bulgaria’s industrial production makes new dive Feb’09 Bulgaria’s industrial output continued to contract in February, falling 17.7% year-on-year, showed preliminary figures of the National Statistical Institute (NSI). The decline is sharper than last month, when preliminary data showed a 13.3% slowdown. However, final statistics for January revealed an 18.4% slump, which makes it hard to say whether the pace is growing or falling. In any case, industrial companies are expected to close the year with thinner volumes compared to 2008. In an indication that the global financial crisis has taken a turn for the worse, investment and intermediate consumption products have been most severely affected. This signals slower investment activity, which drags down economic growth. Investment and intermediate consumption products have shrank by 29.6% year-on-year. At the same time, industrial production expanded 5.6% on the month, according to preliminary figures, which come after a jaw-dropping fall of 19% registered in January. Final statistics for the first month show an even deeper monthly of 23.8%.
Source: Dnevnik (13.04.2009)

Bulgaria’s trade gap contracted by more than 40% in February 2009 from the same month of 2008, according to preliminary figures of the National Statistical Institute (NSI). Over January to February, the deficit fell by 42% to BGN 1.37 billion compared to the year-ago period. The trade deficit was BGN 687.3 billion (or 1% of the gross domestic product) in February against BGN 1.16 billion (1.8% of GDP) a year before. Thus February became the fourth successive month of a falling deficit from the same period of the prior year. Experts pointed to the crisis undermining consumer spending as the main factor behind the decrease but said the lower oil and metal prices also played a part. One negative implication could be a slowdown in foreign direct investment (FDI), something which was already seen last year. February’s exports added up to BGN 1.73 billion, which is 27% less than a year before. Imports were a faster slider, falling by 32% to BGN 2.55 billion.
Source: Monitor (14.04.2009)

Bulgaria's State Budget Deficit Hits 3.5 B Levs Because of the spreading global financial crisis, 3.5 billion levs of the expected revenues to the Fisc will not be collected. As a result, the expenditures of the state administration will be cut down by ten percent, so as to implement this year's budget with some surplus. This is written in a special report of the International Monetary Fund on Bulgaria. Yesterday, the IMF launched a mission aimed at collecting information on the economic situation in the country. Bulgaria IMF Mission Head Bass Bakker had a talk with Finance Minister Plamen Oresharski. The situation with the expected revenues from VAT appears to be the most complicated - the unfulfilled collections are expected to reach 3 billion levs. To compensate for the lower than expected revenues, the Bulgarian government will have to cut down this year's budgetary expenditures by 1.7 b levs, the IMF report recommends. The report reads further that state expenditures should be reduced and salary rises should be curbed, as Bulgaria's economic growth will slow down to one percent this year. Bulgaria's state budget for this year provides an economic growth of 4.7% and a three-percent surplus, but the IMF forecasts that the economic crisis will worsen and Bulgaria's GDP will grow by only one percent.
Source: Standart (15.04.2009)

Inflation Rates in Bulgaria Go Down The National Statistical Institute registered a negative March inflation rate of -0.2 percent, which means that the yearly rise of inflation against March 2008 is only 4.9 percent. The yearly inflation is now 3 times lower than the record-breaking rates from mid last year. Thus bank savings are getting more and more profitable. At 8 percent interest, one-year deposits in levs (1 euro = 1.95 levs) make an actual return of 3 on every 100 levs. Food prices in March went down and so did the household expenses as well as healthcare, transport, communication.
Source: Standart (15.04.2009)

The inflation rate in March was 4.9 percent compared to the same month last year, show data of the NSI. The inflation measured according to EU methodology fell to 4 percent from 5.4 percent in February. On a monthly basis there is deflation, as the consumer price index decreases by 0.2%.
Source: Dnevnik (15.04.2009)

The drop in Bulgaria's foreign trade because of the financial and economic crisis decreases the high deficit in the running account. In February it was EUR 224.7 million, which is by 66% less compared with the same month of 2008, statistics of Bulgarian National Bank show. In January, the deficit fell by 45% year on year to EUR 439.7 million. The main factor for the drop is the decreased trade deficit.
Source: Pari (16.04.2009)

Consumer Loans Fall 50 percent in Bulgaria The share of consumer loans in Bulgaria has shrunk fifty percent, according to information of the National Statistical Institute. In February, the consumer loans fell to 6.80 levs from 11.59 levs y/y. At the same time, the households? incomes have increased by 12% in a year?s time, statistical data show. In February, the average income of the Bulgarian was 274.74 levs and of the Bulgarian household - 686.66 levs. On monthly basis, however, the incomes of the Bulgarian citizens are shrinking and this is not only due to the global financial crisis. The average monthly income of the Bulgarian citizens in January was by two levs higher than that for February, and this was the case last year, as well. It seems that small businessmen and freelancers have been the worst affected by the global financial downturn.
Source: Standart (16.04.2009)

Eurostat said eurozone industrial production fell once again In February 2009 compared with January 2009, seasonally adjusted industrial production1 fell by 2.3% in the euro area2 (EA16) and by 1.9% in the EU272. In January3 production decreased by 2.4% and 2.3% respectively. In February 2009 compared with February 2008, industrial production declined by 18.4% in the euro area and by 17.5% in the EU27. Non-durable consumer goods decreased by 1.4% and 1.1% respectively. Durable consumer goods fell by 4.3% in the euro area and 2.9% in the EU27. Among the Member States for which data are available, industrial production fell in sixteen and rose only in Portugal (+2.4%), Greece (+1.7%) and Poland (+0.4%). The most significant falls were registered in Lithuania (-4.1%), Estonia (-3.6%), Italy (-3.5%) and Germany (-3.2%).There is decrease in total of n16 countries, data for the other is not available. Bulgaria registered a decrease of 0.8% on month-to-month base in February. Decrease was 3.5% in January. At annual base drop down is 20.3% in February in Bulgaria.
Source: Darik Radio (17.04.2009)

Unemployment in March slightly increases Unemployment in March was 6.88% compared to 6.69% a month before and 6.79% a year earlier. Another 253,899 unemployed have been registered, which is by 7,100 more than in February. Despite the contracted production and cut jobs, there are about 10,000 free positions in the country. Their number is the highest in the processing industry, horeca business, trade and agriculture.
Source: Pari (17.04.2009)

Incomes in Bulgaria Get Frozen For the last ten years the real growth of incomes of Bulgarian families is just by 21% higher. For 2008 the average annual income of a person in Bulgaria was 3,748 levs (1euro=1.95levs), the National Statistical Institute reported. For a year the earnings have grown by 12,8% and for the last 10 years - 2,36 times. However, deducting the inflation accumulated in a decade, it turns out that the real money in the pockets of Bulgarian nationals is just by 21% more. The growing importance of the salary as main source for the family budget persists as a trend. In 2008 the salary formed 51,9% of the gross personal income while in 2005 it was 40,2%. Meanwhile credits have more and more important role for the family budget. In 1999 the average loan was 68 levs per family and in 2008 credits are by four times higher to reach 276 levs per family. An increasing importance of pensions and welfare as a source of family income can be noticed in 2008.
Source: Standart (17.04.2009)

Eurozone trade deficit falls sharply in February The eurozone trade balance showed a sharply reduced deficit in February of 2.0 billion euros (2.6 billion dollars) from 10.9 billion euros in January. On an adjusted basis, exports in February 2009 rose by 0.5 percent from the level in January and imports fell by 0.8 percent. For the whole of the European Union, the trade balance showed a deficit of 10.6 billion euros in February after a deficit of 27.2 billion euros in January. Export in February 2009 as to January 2009 is 8 percent higher, while import falls 1.9 percent.
Source: Darik Radio (17.04.2009)

Bulgarian businesses may scale back investment by 36% Investments in the Bulgarian industrial sector might be trimmed by 36% in 2009 compared with the previous year, according to a poll by the National Statistical Institute (NSI) conducted at the end of March. Total investments for 2008 are seen at a preliminary BGN 28.8 billion, which means a BGN 10.4 million nominal reduction for 2009. Private businesses are expected to fare better, planning to cut investments by an average of 32.7% against an expected 45% for state-controlled companies. Calculated by costs for acquisitions of fixed tangible and intangible assets, most investments will focus on energy and water projects, which are expected to decline by just 29.4% year-on-year, yet accounting for nearly 45% of the total investments. Second in terms of volume will be processing and intermediate goods producers, which are expected to generate 28.3% of the total investments and cut down 45.7% from last year’s levels. The NSI announced in early April that almost a third of Bulgarian companies planned or were considering staff downsizing. The Bulgarian Industrial Capital Association (BICA) has predicted that industrial output would fall by 30% in the first quarter of the year. Economist Dimitar Chobanov forecast the sector will shrink by at least 10% for the full year. The investment costs of Bulgarian companies soared by 12.2% for 2008 from 2007, mainly on the back of state-run enterprises. Driven mostly by energy and water projects, the latter lifted capital expenses by 69.6%. Private companies increased investments by 0.9% compared to 2007. The figures are preliminary and are expected to be revised.
Source: Dnevnik (21.04.2009)

Market prices of homes in Bulgaria have decreased by 12.4% for the first quarter of this year compared to the last three months of 2008, show the data of the NSI. In comparison with the same quarter of the previous year the decline is 8.4 percent. In the first quarter of 2009 compared to the previous one, a decrease of prices in all district towns was registered. The average market price of housing in the country is BGN 1190.72 per sq. m, as the highest is in Varna - BGN 1982.17 per sq. m, followed by Sofia - BGN 1980 per sq. m and Burgas - BGN 1678.67 per sq. m. The lowest average price was recorded in Kyustendil - BGN 599.08 sq. m.
Source: Darik Radio (24.04.2009)

Bulgaria Business Climate Hits Record Low The business climate in Bulgaria is at its worse state since 2002, according to data from the "Estat" agency. The sociology agency was commissioned to conduct the poll by the Institute for Policy and Development at the United People Party (UPP). The poll includes 400 Bulgarian businesses and reflects the state of the business climate in the country during the last quarter of 2008. Data from the poll shows that businesses in the construction, hotel, trade and transportation sectors have been the most affected by the crisis and the sinking companies are now 2,5 more than the prospering ones while nearly one third of the businessmen will advise friends and relatives to not invest in Bulgaria. During the same period of 2007, 12% of those poled expected the situation to worsen while 44% expected an improvement compared with 28% for each in 2008. Owners of companies which deal with exports are the ones with the most grim forecasts about the future.
Source: news.bg (24.04.2009)

Unemployment could exceed 10% The registered unemployment could exceed 10% if the economic growth continues to shrink, said the head of CITUB – Zhelyazko Hristov. According to him, there are clear signs about the upcoming crisis. In Textile Industry the employed have decreased by 15 thous in just a little over a year. Metallurgy has lost 1770 jobs, machine building – 1063, transport – 3500. Industrial production in February has decreased 17.7% as to Feb 2008. Slump in many sectors is between 30 and 50 per cent. Risks may soften in case the banks decrease the interests and the State provides subsidies to the most vulnerable sectors of the Economy, he said. Social Minister Emiliya Maslarova reminded that currently 10,000 jobs are available. 42,000 people would work at shorter work time under the program for HR development.
Source: Trud (28.04.2009)

Salaries of Bulgarian workers – 15 times less than the European ones! The average monthly income of the Bulgarian households is 8 times less that the average one of the EU member states. This show Eurostat data, presented during the national discussion forum on the strategy for flexible security, organized by trade union KNSB. According to the union’s analysis the average annual gross salary for industry and services is nearly 15 times less than the average one of the EU member states, while the share of the salaries from the gross domestic product is one of the lowest in Europe – only 36%. The productivity of the Bulgarian worker equals 35% of the European productivity and this factor is not used sufficiently for increase of the actual work salaries. KNSB trade union offers the efforts to be directed towards fostering of the small and medium business and self-employment, consolidated policy in the negotiations on the salaries in the budget sector, as well as “catching up with” development, based on quality employment, high technologies and investment growth.
Source: Darik Radio (28.04.2009)

Business climate brigthens up in April Bulgaria's business sentiment registered a slight improvement of 0.6 points in April, showed official statistics. Economic conditions in all sectors but the construction industry bettered with managers seeing brighter business opportunities. For the first time since last September, economic climate in the industrial sector moved up by 4.1% in April. The index rose by 17.3 points from March, driven by managers' more upbeat projections for the next six months. In addition, companies expect to recover operations and boost export in the next three months. However, production capacity workload contracted by new 3.4 points to 67.4%. The retail trade index inched up for a second consecutive month as managers are more upbeat for the next six months. The services sector showed brighter outlook as well. Companies assess current economic conditions as negative but expect stronger demand over the next three months that may prompt them to hire extra workforce. Business climate in the construction sector dulled again in April, falling by 6.1 points from the previous month. Market uncertainty and financial troubles are major challenges to the building industry. For a fifth month in a row between 15% and 19% of managers expect lower selling prices.
Source: Dnevnik (29.04.2009)

The production of propane – butane, unleaded petrol and diesel fuel on an annual basis has increased respectively with 50%, 1.7% and 24.7% as well as the production of electric energy with 5.8%. The production of solid fuel and natural gas has decreased respectively with 1.3% and 96.3%. The production of hard fuels on a monthly basis is decreasing with 14% to 2658 thousand tones, the production of electric energy and natural gas diminishes with respectively 13.9% to 3892 GWatt/h and 88.9% to 1 million standard m3. The production of propane – butane, unleaded petrol and diesel fuel is decreasing with respectively with 25% to 9 thousand tones, 35.5% to 60 thousand tone and 30.3% to 101 thousand tones. The supplies of natural gas in February 2009 compared to January 2009 increase with 20.6% to 299 million standard m3. The supplies of propane-butane decrease – with 19.4% to 24 thousand tones, of unleaded petrol – with 34.4% to 40 thousand tones, diesel fuel – with 25.3% to 118 thousand tone, solid fuel – with 17.7% to 2973 thousand tones and electric energy – with 14.6% to 3148 GWatt/h. The supplies of propane – butane increase with 25% on an annual basis. The supplies of unleaded petrol decrease with 13%, of diesel fuel – with 18.6%, solid fuels – with 0.6%, natural gas – with 28.3% and electric energy – with 6%.
Source: profit.bg (30.04.2009)

Bulgaria Sales' Revenue Down by 12% y/y Bulgaria's sales revenue decreased by 12,1% in March 2009 year-on-year. That was announced Monday by Bulgaria's National Statistical Institute. The retail trade sector marked a 8,4% decrease for the same period. There was an increase though, in the food, beverages, and tobacco sales - by 2%. In all other branches, the decrease is between 1,1% and 15,6% at the IT and communication s market. The wholesale trade sector fell by 9,8% for March 2009 year on year. The machines and appliances trade market decreased by 21,5%, and the IT and communications was down by 16,3%. There was a slight increase by 1,4% in the wholesale non-food consumer goods commerce. The cars, motorcycles, technical service and repairs sector recorded the highest decrease - 34,6%. The sales' revenue had increased by 5% in March 2009 month-on-month. The rise is due to an overall increase in trade.
Source: Darik Radio (12.05.2009)

C onstruction business, one of the most seriously hit by the crisis, reported growth for a second month in a row. In March production in the sector added 7.3% compared to the previous month. In January it was 6.3%. The highest growth is in infrastructural building (11.9%). Construction of buildings preserves the high share in the total production (66.8%). The volume of construction in March 2009 dropped by 4.3% compared to the same month in 2008.
Source: Pari (12.05.2009)

Bulgaria's State Debt Reduced by EUR 59 M in March Bulgaria's state debt was reduced by EUR 59 million in March to reach EUR 4.75 billion, sources from Bulgaria's Ministry of Finance reported. The reduction is mainly due to payment of arrears, MF specified. The size of the external state debt is EUR 3.3 billion as it increased by EUR 46 million since the beginning of 2009. The domestic state debt was reduced by BGN 263 million for the first trimester of 2009 to total BGN 2.81 billion.
Source: Standart (12.05.2009)

Bulgaria’s trade deficit narrows by over 43% Mar’09 Bulgaria’s foreign trade contained its deficit by a large margin in comparison to last year, with a trade gap of BGN 1.973 billion in the first quarter of 2009, a 43.27% contraction on the corresponding quarter of 2008, under data of the National Statistical Institute (NSI). This speaks for 2.69% of the projected gross domestic products (GDP), or almost twice less than for the year-ago period. The decline is seen as the most immediate implication of the worldwide crisis and the weakened economic activity. Most experts take the smaller trade deficit as a positive development as it is reflected in the current account, where large deficits remain the top concern of both the government and experts. Flagging imports weighed on the trade deficit, shrinking to BGN 7.448 billion by FOB (free-on-board) prices, which exclude transport and insurance costs. While this is equivalent to a 29.8% fall on first-quarter 2008, the easing pressure on the current account is a signal of a looming recession. On the other hand, exports dwindling at a slower pace are seen as a good sign. They added up to BGN 5.475 billion, down 23.27%.
Source: Dnevnik (13.05.2009)

Bulgaria's Foreign Trade Gap Shrinks by BGN 1.7 B In the conditions of a widening global financial crisis and falling import and export rates, the gap in Bulgaria's foreign trade gap shrunk by BGN 1.7 billion in the first trimester of 2009 to reach BGN 2.4 billion. The export in the first trimester of this year shrank by 23% to BGN 5.5 b, and the export fell by 30 pct y/y to BGN 7.8 b, the national statistical institute reports. Bulgaria's main trade partners outside the EU are Russia, Turkey, Macedonia and China. The export to Macedonia and Russia has contracted over 30 pct, that to Ukraine by 50 pct and that to Turkey and China by as much as 60 pct. Respectively, the import of goods from China has shrunk by 3.3 pct, from Turkey by 29,4 pct, from Russia, by over one-third, from Ukraine by 60 pct and from Macedonia by more than two-thirds.
Source: Standart (13.05.2009)

Inflation in Bulgaria Goes down to 4.8% The annual inflation rate in Bulgaria has dropped to 4.8%, sources from the National Statistical Institute reported. The index is three times lower compared to the inflation rate in the summer of 2008, which went over 15%. But since the end of 2008, the inflation rate started slowing down with the first impacts of the global crisis on Bulgaria and shrinking sales. The current inflation rate is very favorable for savings. Some banks offer promotional deposit interests of 8-9%.
Source: Standart (14.05.2009)

Bulgarian Trade Unions Expect Unemployment Rate to Reach 10% "Unemployment rates are growing but talking of unemployment leap is too far-fetched, said Konstantin Trenchev," leader of Podkrepa trade union. In his opinion, a great number of jobless Bulgarians do not register at the employment agencies and this results in distorted information fed to the state institutions. The ones working in the shady economy can't register and the others who return to Bulgaria from foreign countries live on saved money for certain periods of time. "I expect that in the fall the unemployment rates will reach over 10%," Trenchev forecast. In its National Employment Plan, the Ministry of Labor and Social Policy envisages unemployment rate of 7.4%; no unemployment leap is expected.
Source: Standart (14.05.2009)

Wages in Bulgaria Are the Lowest in EU The Bulgarians receive the lowest payment per workhour in the EU and the Danes are the best paid - they get 15 times more money than the Bulgarians. The data is provided by the Federal Statistical Office of Germany, quoted by Deutsche Welle. According to the report, Danes' average income stands at 36.50 euro while the Bulgarians take 2.50 euro per a workhour.
Source: Standart (15.05.2009)

8,5% More Houses Built in Bulgaria in 2008 The number of newly built housing structures in Bulgaria increased by 8,5% in 2008 year-on-year reaching 2 926 for the year. The number of newly built apartment have grown by 10,9% to 20 924 for the same period, National Statistical Institute report showed Friday. The largest number of new buildings is in the Black Sea coast city of Varna. In 2008, 622 buildings with 4 298 apartments were constructed there. Varna is followed by Bulgaria's second biggest Black Sea cost city of Burgas. 530 new buildings with 5 305 apartments were raised there for the dame period.
Source: Darik Radio (16.05.2009)

Bulgaria’s Economy Shrinks 3.5 pct Bulgaria has been hard hit by the global financial crisis. According to an analysis of the national statistical institute, the real term slump in the country’s GDP is 3.5 pct in the first quarter, but this is more optimistic than the performance of most of the European economies in the quarter. For example, Germany, which has always been the bloc’s economic motor, saw its GDP contracting 6.9 pct, that of our northern neighbor, Romania, fell 6.4 pct, Slovakia’s GDP shrunk 5.4 pct, Hungary’s 4.7 pct, etc, according to the results of a survey by Eurostat . On the average, the GDP of the European economies fell 4.4 pct. The last collapse of the Bulgarian economy was in 1997, when the country suffered hyper inflation and unstable national currency. The situation is very different now. Due to the operating currency board and the government’s prudent fiscal policy, the national currency, Lev, is stable, the fiscal reserve is close to eight million levs and last month’s inflation was only 0.7 pct. The GDP for the quarter was 13.74 b levs. The industry has been the worst affected by the spreading global financial crisis. The sector, which accounts for 30.3 pct of the economy, contracted 12.2 pct y/y and dragged down the GDP in the first quarter. On the other hand, the service sector, which makes over 65 pct of the country’s economy, grew 0.9 pct, which explains why the GDP fell only 3.5 pct. The agriculture sector slumped 3.1 pct in the first quarter, but its share in the country’s economy is only 4.4 pct. Many investors have frozen their projects in Bulgaria waiting for the global financial climate to improve and as a result the flow of foreign investments to Bulgaria fell 15.4 pct in the first quarter. The expenses of the households and the companies in Bulgaria have also decreased. As the demand is shrinking globally, Bulgaria’s export has contracted 16.4 pct, and the import – 21 pct.
Source: Standart (16.05.2009)

Statistics show that 20,924 new residential units were built in 2008, up by 10.9% compared to the year before. The living space also increased by 7.5% compared the previous year. The good results of the last five years are not likely to be repeated, specialists say.
Source: Pari (18.05.2009)

The number of workers in the first quarter decreased by 1 percent, data of NSI show. At the end of last year nearly 2.44 million people were employed, and three months later - 2.41 million people. The biggest decrease was registered in the so-called "other activities" - 12.6%, and in finance and insurance - by 8.7 percent, and in the tourism business - 3.4%. There is an increase in the number of employed people in agriculture and forestry - by 10.7 percent, in administration - by 8.3% and in the water sector and waste management - 6.5 percent. The largest number of workers is in manufacturing, where 23.8 percent are employed. In trade and services work 18.2% of the peopl
Source: Dnevnik (19.05.2009)

Bulgaria's Budget Surplus Reaches 600 M Levs "Bulgaria accumulated a BGN 600 mln budget surplus for the first four months of 2009. This is an increase of BGN 76 mln compared to the BGN 514 mln raised in the first three months of the year," Finance Minister Plamen Oresharski said. "Considering the seasonal character of the economy and the strong agriculture sector, over the next few months the financial climate will hardly deteriorate. On the contrary, it can improve slightly, but this is not certain," Minister Oresharski went on. "I will pass a good foundation to my successor. I would like to advise him to continue with liberal financial policy," Mr. Oresharski said.
Source: Standart (20.05.2009)

Freight and Passenger Transport Reports YoY Decrease in April In April this year railway transported cargo is 13.4 percent down as compared to the previous month, due primarily to the reduced volume of domestic traffic, and operations in ton-kilometers decreased by 9.4 percent, the National Statistics Institute reported. Compared to the corresponding month of previous year, transported cargo in April 2009 decreased by 37.4 percent, and the operations - by 40.9 percent. 7 percent more passengers were conveyed in April 2009 as compared to the previous month, and the operations in ton-kilometers increased by 9.3 percent. Compared to the same month last year, transported passengers in April 2009 are 6.5 percent less, but the operations fell by 5.9 percent as a result of the reduced average distance in international transport.
Source: Darik Radio (21.05.2009)

Bulgaria’s Merchants in Low Spirits over Shrinking Sales Bulgaria’s merchants are lapsing into despair over a forecast contraction of sales in the next three months. The good news is that prices would stay the same. There isn’t much development in Bulgaria’s business climate, according to National Statistical Institute data. The service sector managers predicting a downward trend in prices (22.8%) are twice as many as the optimists (11.2%). There are looming expectations for lower prices in construction business, too, but there seems to be a growing optimism among managers as the summer is approaching. According to expectations, though, 25 percent of builders would have to downsize personnel. Industry shouldn’t be in high hopes for an improvement in the next six moths, experts predict.
Source: Standart (29.05.2009)

A Hundred Levs in Sofia Equal Ninety Levs in Plovdiv What one buys for BGN 100 in Sofia, costs only BGN 88.60 in Plovdiv, an Industry Watch survey shows. The results reveal that the lev’s value is 10 percent higher in the cities of Rousse and Plovdiv. Sofia holds Bulgaria’s first place in terms of cost of living; Shoumen and Targovishte are cheapest. What costs one lev in the centre of Sofia, can be bought for BGN 0.96 in Bourgas, BGN 0.95 in Varna, BGN 0.93 in Stara Zagora and only BGN 0.89 in Rousse. The time it takes to pay off your housing loan in Stara Zagora is a third less than in Sofia or Varna. Sofia and Varna offer the highest wages in Bulgaria. An average worker aged between 25-45 who speaks English but lacks any special skills or qualification would earn 14 percent less in Rousse than he would in Sofia. There is hardly any difference in wages for unskilled labour.
Source: Standart (04.06.2009)

The export /FOB - Free On Board/ of Bulgaria for the first quarter of 2009 is BGN 5.221 billion, as the export to EU member states amounts to BGN 3.481 billion and to third countries – BGN 1.740 billion, the National Statistical Institute announced. For the same period the import /FOB/ is BGN 7.448 billion. The trade balance for the quarter is negative and amounts to BGN -1.245 billion. The statistical data show that the export and import are distributed relatively evenly in the firs three months of 2009, as there is some intesification of both export and import in February and March.
Source: Darik Radio (10.06.2009)

Bulgaria’s FDI dwindles over 45% Y/Y Q1’09 In the aftermath of the global economic turbulence, first-quarter foreign direct investment (FDI) to Bulgaria almost halved from the year-ago period as the trade deficit shrank by a third. The figures published yesterday by the Vienna Institute for International Economic Studies (WIIW) and Bulgaria’s National Statistical Institute (NSI) revealed that the country’s trade deficit contracted by 34% year-on-year to BGN 2.227 billion, which is an upwards revision of the 44% slide seen in the flash estimates. Amidst flagging economic activity, fossil fuel imports to Bulgaria plunged by more than 56% on the year. WIIW calculated that first-quarter FDI shrank north of 45% year-on-year but still Bulgaria emerged as the sole EU country where funded projects from January to March outnumbered those in the same period of the prior year. The institute predicted that investment in the ten EU newcomers will collapse by more than 50% this year, retreating to levels of the start of the decade at around EUR 20 billion.
Source: Dnevnik (10.06.2009)

One Million Bulgarians Live in Poverty According to information of the National Statistical Institute (NSI), over one million Bulgarians live in poverty. Last year the number of people living below the poverty line in Bulgaria increased by 20,000 and now the poor make 14,4% of the population, 4.5% of them are employed. In 2008, the poverty line in Bulgaria was BGN 211.43.
Source: Standart (10.06.2009)

Bulgaria Registers Export Collapse of 27% In the first trimester of 2009, Bulgaria's export went down by 26,8% and reached BGN 5.221 billion, announced sources from the National Statistical Institute. The abrupt export drop is the immediate result from the world economic crisis and the lower demand for Bulgarian goods abroad. The country's import is dropping even faster: by some 30%: together with transport fees and insurance taxes it stands at a total of BGN 7.8 billion. The state's commercial deficit amounts to BGN 2.6 billion which is by 35% less than it was in the corresponding period of 2008. However, there is a positive trend, too: Bulgaria has increased the export of foods, beverages and tobacco by 35%; the sum stood at BGN 742 million in the last trimester of 2009, announced investor.bg. The import of the above-mentioned products has increased by 6.37% thus reaching BGN 758 million.
Source: Standart (10.06.2009)

Construction production in April of this year rose by 1.2% compared to the previous month, National Statistical Institute announces. In March the construction business registered growth but in April 2009 it slumped by 8.9% compared to April 2008. Engineering construction (infrastructure and equipment) gained 2.8% but it holds a small share in the sector.
Source: Pari (11.06.2009)

Bulgaria's Economy Nosedives Bulgaria today very much resembles of the Titanic - while the ship is sinking, the orchestra plays waltz on the deck. Yesterday it emerged the economy was heading straight to the rock bottom. The two latest trimester statistical reports read negative growth of the economy. For the last months of 2008 it was - 1.6% and for the first three of 2009 it was 5%. The recession, which has just started, will bring an avalanche of bankruptcies, large-scale unemployment and abrupt income decrease, experts believe. Meanwhile the Cabinet boosts of four years of successful government. ?What we have achieved exceeds the pledged, Bulgaria moves forward,? Bulgaria Prime Minister, Sergey Stanishev concluded. To his words, the crisis is not sharply sensed in Bulgarians? everyday life. Reportedly, Bulgarians are better cusioned against the crisis compared to Germans, the Irish and other citizens from Western Europe.
Source: Standart (11.06.2009)

Bulgaria's Economy Shrinks by 5% Officially, the global crisis pushed Bulgaria into recession. Bulgaria’s economy has registered slumps in two successive trimesters, the National Statistical Institute (NSI) reported. In the last trimester of 2008, Bulgaria’s GDP was down by 1.6% compared to the previous trimester of the same year. For the first three months of 2009 the slump is even more dramatic - by 5%. Bulgaria’s economy has not witnessed such negative results since 1996-1997 when this country suffered hyperinflation and prices changed several times a day. The global crisis forced the NSI even change the data reporting the GDP in Bulgaria. So far, the economic growth and slump were compared only with the same trimester of the previous year. The global crisis made necessary the observation of the GDP and compare it to the previous trimester. Now, Bulgaria is officially in recession after two successive trimesters with dips in GDP.
Source: Standart (11.06.2009)

Bulgaria's April industrial production down 20% Bulgaria's April industrial production fell by 20% on year versus a revised annual decline of 16.9% in March, said National Statistics Institute (NSI). On a monthly basis, Bulgaria's industrial production dropped by 4.7% in April versus a monthly increase of 8% in March. In April, production in manufacturing industry increased by 2.6% as compared to the previous month, while mining production fell by 0.8% and utilities slumped by 25.2% in the period.
Source: Standart (11.06.2009)

Bulgaria’s new construction, sales bounce back In a sign that the Bulgarian economy has started to curb the decline, sales revenue surged by 5.2% month-on-month in April, with retail and wholesale gaining 3% and 6.7%, respectively, showed the latest numbers of the National Statistical Institute (NSI). On the year, however, sales diminished by more than 10%. New construction in the fourth month of the year inched up by 1.2% compared to March, marking the third consecutive month of growth, even though smaller than the over 7% rise registered in March. The annual contraction added up to 8.9%, pressed by slumping building construction, which shed nearly 14%. On the other hand, infrastructure projects rebounded by almost 3%. At the same time, industrial output sank by 4.7% on the month and a precipitous 20% on the year. A few individual sectors made hefty gains, with the tobacco industry scaling up production by 50%. At the other end of the table, electricity and heat generation as well as fuels shrank by more than 25% compared with the previous month due to milder weather conditions.
Source: Dnevnik (11.06.2009)

Bulgaria’s trade deficit totaled just over BGN 1 billion in April, unchanged from the previous month, showed figures of the National Statistical Institute (NSI). Imports contracted to BGN 2.66 billion compared with BGN 2.9 billion in the third month. Exports shrank to BGN 1.61 billion from BGN 1.88 billion. From January to April, imports topped BGN 10.5 billion and exports BGN 6.8 billion, opening a deficit of BGN 3.7 billion. The gap widened close to a record BGN 20 billion last year.
Source: Dnevnik (12.06.2009)

Bulgaria Inflation Slows Down to 3,9% in May y/y Bulgarian consumer price inflation eased to 3,9% year-on-year in May from 4,8% a month earlier, mainly due to a drop in food prices, statistics office data showed on Friday. This is the eleventh month in a row that Bulgaria's inflation rate registers a drop on an annual basis. On a monthly basis, consumer prices fell 0,3% from a 0,7% increase in April, the data showed. The government's end-year target for consumer price growth has been set at 4%, while the central bank sees annual inflation at 2,5% at end-2009. The International Monetary Fund expects inflation to fall to 1,5 %. Food prices in May fell 1,2 % on a monthly basis due to a drop in prices of vegetables and meat, while non-food prices went up by 0,3 % on the month mainly due to an increase in fuel prices. Service prices increased by 0,1%. High inflation has been one of the key obstacles for the adoption of the European single currency in Bulgaria, which currently operates in currency board regime and the lev is pegged to the euro. The European Union newcomer has already entered recession with its economy shrinking 5% from January to March and contracting 1.6% in the fourth quarter on a quarterly basis. Bulgaria's gross domestic product (GDP) has contracted by 3,5% in the first quarter of 2009 on an annual basis, the first time that the country's GDP marked a drop year-on-year since the financial and economic crisis in 1997.
Source: Darik Radio (15.06.2009)

Bulgaria Household Income Up 8%; Expenses Up 3% The total average income per person in a household for the month of April 2009 is BGN 306, over 8% up compared to April 2008. The data was released Monday by the National Statistics Institute (NSI). The majority of the above income comes from salaries and retirement pensions - 80%. The total average expense per person in a household for the month of April 2009 is BGN 274, up by nearly 3% compared to April 2009. The majority of the expense is formed by food and housing expenses, including energy and water bills - over 52% of all expenses. Expenses for food and non-alcoholic beverages are up by 2,3% to BGN 105 per person in a household while housing expenses have gone from to BGN 41 in April 2008 to BGN 48 in April 2009.
Source: Darik Radio (16.06.2009)

EU tax ratio of GDP increase The overall tax-to-GDP ratio1 in the EU272 was 39.8% in 2007, a slight increase from 39.7% in 2006. The EU27 tax ratio, which stood at 40.6% in 2000, fell to 38.9% by 2004 and then started to rise. The overall tax ratio in the euro area2 (EA16) was 40.4% in 2007, and also rose slightly from 40.3% in 2006. Since 2000, taxes in the euro area have followed a similar trend to the EU27, although at a slightly higher level. In comparison with the rest of the world, the EU27 tax ratio remains generally high, exceeding those of the USA and Japan by some 12 percentage points. However, the tax burden varies significantly between Member States, ranging in 2007 from less than 30% in Romania and Slovakia (both 29.4%) and Lithuania (29.9%), to a little less than 50% in Denmark (48.7%) and Sweden (48.3%). Tax ratio of Bulgaria is also under the EU average – in 2007 it reached 34.2% following the 33.2% a year earler.
Source: econ.bg (23.06.2009)

Bulgaria's June business sentiment down 1.1 pc points on month Bulgaria’s June business sentiment index fell by 1.1 percentage points as compared to the previous month, said the National Statistical Office (NSI). All business climate indexes dropped, except for the service sector. Business climate in industry lost 2.7 percentage points in June as compared to the previous month, following the managers’ pessimistic expectations for the next six months. Moreover, expectations about the production activity over the next three months were also more pessimistic. Furthermore, business climate in the construction sector decreased by 0.9 percentage points in June as compared to the previous month, on managers’ pessimism about the business situation in enterprises over the next six months. In June, the business climate in retail trade fell by 0.7 percentage points on the month, mainly due to the more moderate expectations of the managers about the business situation over the next six months. In June, the managers pointed out that the uncertain economic environment and the insufficient demand were the major factors limiting the activity of the enterprises. Retail sales and selling prices are expected to remain unchanged in the next three months. The business climate in service sector rose by 1.5 percentage points in June as compared to May, due to the slightly improved managers’ assessments and expectations about the business situation of enterprises. The expectations about the next three months were less optimistic in comparison with May.
Source: Darik Radio (26.06.2009)

T he general index of production prices in industry grew by 0.7% in May compared to April, the National Statistical Institute announced. Compared to the same month the previous year, production prices dropped by 6.7%. The price of metals dropped the most, 30%, and the processing industry as a whole registered the highest fall of 11.5%. In May of this year, however, these prices added 3.5 and 1.1% respectively.
Source: Pari (30.06.2009)

Food, metals take steepest slide in producer prices Deflation in Bulgaria’s producer prices sped up for a third consecutive month, reaching 6.7% in the year through May from 6.1% in April, showed figures of the National Statistical Institute (NSI) published yesterday. Producer prices continued to waver on the month, with May swinging to an inflation of 0.7% from a -0.6% deflation in April. The sharpest drop was recorded by metal ore mining and metal production as well as food production. “Consumer prices are generally on the rise. Thus producers are able to restructure costs and labour costs are going up at the expense of direct materials and raw materials costs. This helps the unemployment rate to stay down. However, the dynamics of producer prices is governed by the international markets as well and the current state of events cannot hold very long. A turnaround in the price trend would unleash unemployment as producers will be looking for competitive prices against the backdrop of costlier raw materials,” said Professor Garabed Minasyan of the Bulgarian Academy of Sciences (BAS).
Source: Dnevnik (30.06.2009)

Bulgaria Base Interest Rate Record Low The Bulgarian National Bank determined a record low 2,24% base interest rate for July 2009. This is a decrease of 0,11 percent points month-on-month, and is the lowest interest rate since January 2006, when it was 2,21%. In January 2009, the base interest rate was 5,17%, but it fell to 3,49% in February. In March it was even lower - 3,49%. However in April the interest rate increased to 3,53%. The base interest rate, determined by BNB, dramatically fell in May to 2,27%. This is the first month, in which the BIR falls under 3% this year.
Source: Darik Radio (02.07.2009)

Bulgarians - the Most Impoverished in Europe Bulgarian people are the poorest in the EU. The living standard in Bulgaria is three times lower compared to Austria, Sweden and Great Britain. In the last couple of years even Romanian takes the lead of Bulgaria, show the data on gross domestic product (GDP) per capita of the EU member-states. Bulgaria's GDP per capita is 40% of the average EU GDP, while in Luxembourg it is 6 times higher - 253%. Bulgarians are exactly two times poorer than the Czechs. In Europe more impoverished countries than Bulgaria are just Macedonia with 32,5% of EU average GDP level, Serbia (37,2%), Bosnia and Herzegovina (29,9%) and Albania (25,2%).
Source: Standart (08.07.2009)

Bulgaria’s Export Shrinks by 30% Bulgaria’s export has shrunk by 30% in the first four month of 2009, the National Statistical Institute (NSI) reported. The drop in Bulgaria’s export is due to the global financial and economic crisis that slowed down the development of the world economy. As a result of the global crisis, Bulgaria’s export in the first four months of 2009 amounts to only BGN 6.83 billion. A positive result is the increase in the export of foods and livestock by 34% and is currently worth BGN 737 million, NSI informed. The bigger part of this sum - BGN 520 million, has been exported to the EU member states. Within the same period, Bulgaria exported by 19.6% more soft drinks and tobacco worth a total of BGN 191 million. The overall import rates lower faster than export - by 32.7%, and for the first four months of 2009 reaches BGN 10.51 billion (transportation costs and insurance including.) All this resulted in a gap of BGN 3.67 billion in Bulgaria’s trade balance, which is over BGN 2 billion less set against the same period of 2008.
Source: Standart (10.07.2009)

Industrial production in May 2009 has decreased by 1 % compared to last month, preliminary data shows. Processing industry index increases by 0.1 % in May, in comparison with the index for April, this year. Rise in tobacco production by 47 % has been registered. Increase occurs in the production of beverages by 9.8 %, as well as in that of metals by 5.7 %. The reverse tendency is spotted in the production of chemicals, where a decrease by 22.2 % has been registered. Decline is observed in metal devices production (without machinery and equipment) by 16.2 %, in the production of pharmaceuticals by 11.2 % and in that of textile, without clothes by 10.7 %.
Source: Insurance.bg (13.07.2009)

Bulgarian industrial output hits four-year low May'09 The global economic headwinds bent Bulgaria’s industrial production to a new bottom in May, when it dropped 0.1% on the month and a precipitous 22.1% on the year. At 93.3 points, the industrial index is higher than for January 2007 but at its lowest for the fifth month in the past four years. Some sectors defied the downturn, with tobacco production surging 47% month-on-month but still down 6.9% year-on-year. Printing was the only sector to notch up an annual rise, growing 4.9% from May 2008 and 0.2% from April 2009. Market watchers said last week’s general elections gave a big fillip to the printing industry, which was inundated by posters and ballots orders. An even stronger push came from the food industry.
Source: Dnevnik (13.07.2009)

For a second consecutive month and third since the beginning of the year, the National Statistical Institute registered deflation. In June the index of consumer prices compared to May were 99.6%, which is a minus 0.4% monthly inflation. The main reason for that is the 2.3% drop in food and soft drinks prices. Clothes and shoes were by 0.1% cheaper.
Source: Pari (14.07.2009)

NSI Reported Deflation in June to May Bulgarian consumer price inflation eased to 3,7% year-on-year in June from 3,9% a month earlier, mainly due to a drop in food prices, statistics office data showed on Monday. On a monthly basis, consumer prices fell 0,4% after falling 0,3% in May, the data showed. In the first six months of the year, consumer prices climbed 5.1% compared to last year. Food prices in June fell 2,3% on a monthly basis due to a drop in prices of vegetables and meat, while non-food prices went up by 1,1 % on the month mainly due to an increase in tobacco product prices. Service prices increased by 0,3%. This is the twelfth month in a row that Bulgaria's inflation rate registers a drop on an annual basis and the second consecutive month that sees a deflation on a monthly basis. Meanwhile, the harmonized index of consumer prices rose 2.6% year-on-year in June compared to a 3% rise in May. Month-on-month, the HICP was up 0.1%, after remaining flat in May. The outgoing Socialist-led government's end-year target for consumer price growth has been set at 4%, while the central bank sees annual inflation at 2,5% at end-2009. The International Monetary Fund expects inflation to fall to 1,5%. High inflation has been one of the key obstacles for the adoption of the European single currency in Bulgaria, which currently operates in currency board regime and the lev is pegged to the euro. The European Union newcomer has already entered recession with its economy shrinking 5% from January to March and contracting 1.6% in the fourth quarter on a quarterly basis. Bulgaria's gross domestic product (GDP) has contracted by 3,5% in the first quarter of 2009 on an annual basis, the first time that the country's GDP marked a drop year-on-year since the financial and economic crisis in 1997.
Source: Darik Radio (14.07.2009)

Bulgarian Immigrants Send $US 2.6 B back Home in 2008 The total amount of money the Bulgarian immigrants sent home increased to $US 2.634 billion in 2008 compared the $US 2.132 billion in 2007, shows the preliminary data of the World Bank. The 2007 amount represented 5.4% of Bulgaria's GDP.
Source: Standart (15.07.2009)

Fitch: Bulgaria's economy to drop by 5.5% Bulgaria's economy will contract by 5.5 percent this year and by 3.5 percent in 2010, Fitch Ratings released. This is the one in a row negative outlook on Bulgaria's economy after last week IMF forecast a seven-percent drop in the country's economy for 2009. Bulgaria's long-term foreign currency rating is BBB- and Fitch currently has a negative outlook on it. The stable public finances influence positively the country's credit rating, Fitch Ratings informed. The budget still has a surplus of 600 million levs end-May, but it is nowhere near the record high surplus of 3.3 billion levs at the end of May last year. The revenues to the budget for this year have fallen by 6%, whereas the expenditures have increased by 25%, Fitch reports.
Source: Standart (15.07.2009)

Bank Loans Dwindle by Half in Bulgaria The National Statistical Institute research shows that in May 2008 each Bulgarian drew a bank loan worth averagely 4.70 levs (1 euro = 1.95 levs) which is over a half (52%) less than in the same month last year. At the same time, last May’s loans are still being paid off. As a result the Bulgarian citizens paid back averagely 13.73 levs this May set against 9.61 levs in May last year. Indicative of how much in debt the average Bulgarian is, is the fact that people now spend more money on paying off bank loans than on alcohol, cigarettes, clothing or furnishing. Thus, settling old scores with the bank has come to be a very important item of a household budget. The average income in Bulgaria rose by 9.9% this May, NSI data show. However, when you subtract the inflation rate it turns out the actual growth is only 5.8%.
Source: Standart (16.07.2009)

Sofia Boutiques More Expensive than London The Bulgarians buy more expensive clothes, TV sets and washing machines than the Britons, show the data of Eurostat for 2008. In Bulgaria, the prices of clothes make 84% of the average level in the EU, while for Britain the index is 83%. At the same time, Bulgaria is the cheapest country in Europe. Hotel accommodation and dining in restaurants are much cheaper. But Bulgarian national drink - rakia, is more expensive than the national drinks of Romania, Serbia, Macedonia and Albania.
Source: Standart (17.07.2009)

Bulgaria's Budget Deficit Hits 380 M Levs in June According to information from Bulgaria's finance ministry, the deficit in the state budget reached 380 million levs (1euro=1.95levs) last month, up by 260 million levs from a month ago. As a result, the budget surplus fell to 173 million levs, or 0.3 percent of the GDP at the end of last month from 675 in April. The revenues to the Fisc since the beginning of this financial year are 12.92 billion levs, down by eight percent or 1.1 billion levs from a year ago and by 2.1 billion less than the revenues provided in the plan for the implementation of this year's budget, according to information of the outgoing finance minister Plamen Oresharski. State expenditures for the first half of the year are 12.7 billion levs, up by 2.5 billion levs from a year ago. Mr. Oresharski forecasts that the economy will shrink by 2.5% by the end of the year, which is much more optimistic than the seven-percent economic drop announced in the IMF report on Bulgaria. According to Mr. Oresharski, the current economic situation in the country will allow implementation of the budget with a zero surplus, which is quite acceptable, given the global economic meltdown. The anti-crisis buffers provided in this year's budget total four million levs. The outgoing finance minister has expressed an opinion that further small cuts in the state expenditures are needed so as to avoid budgetary deficit. The fiscal reserve at the end of last month is 8.25 billion levs. Thus a possible deficit can be tackled with funds from the reserve and an IMF loan agreement will not be necessary. However, if the deficit in the budget grows bigger than 3 percent of the country's GDP, or 2.8 billion levs, an IMF aid should be sought. According to Mr. Oresharski, an IMF loan agreement could be provided in next year's budget, depending on the country's financial indices. The budgetary revenues from taxation for the first half of the year are 10.1 billion levs or 39.4% of the planned revenues for the financial year, against 50.3% implementation of the planned revenues a year ago. The revenues from VAT for the first half of the year are only three billion levs, down by 800 million levs from a year ago, as the import has shrunk by 40% this year. According to information of the European Commission, twenty out of the twenty-seven countries in the EU will complete the fiscal year with a budgetary deficit of 3% or higher. Although there is a slowdown in the revenues to the budget in Bulgaria, they are still among the highest in the EU, as several of its members will complete the fiscal year with a two-digit deficit, among them being one of the EU's main economic motors, England," Mr. Oresharski said.
Source: Standart (21.07.2009)

Moody's: Bulgaria's Economy Shrinks by 5% International rating agency Moody's forecasts a 5% drop in Bulgaria's economy by the end of 2009. According to Moody's latest report, Bulgaria's nominal GDP will reach US$ 44 billion in 2009. The new prognoses of the agency read that Bulgaria will face more serious hardships in 2009 mainly due to the slump in the domestic demand whose boom is about to end. The shrinking of the country's GDP will be accompanied by a decrease in Bulgaria's export due to the collapse of Bulgaria's leading commercial partners in Europe. The tighter credit granting in Bulgaria will worsen the situation, according to Moody's. In the previous years the softer requirements for getting credits helped Bulgaria reach an accelerated economic growth. Despite that, Moody's specify that the economic drop in Bulgaria will be temporary and the levels of incomes will remain stable. Moody's gives a positive evaluation of the work of Bulgaria's former cabinet which accumulated budget surpluses in the last years. As a result of that, the decrease of the incomes in the budget sector can now be compensated, Moody's state. The agency forecasts a budget 2.7-percent deficit of the country's GDP, which is one of the lowest levels in the EU. At the same time, Moody's say there is a risk of a significant increase of Bulgaria's foreign debt.
Source: Standart (23.07.2009)

The expenses of the Unemployment Fund have risen 200 percent in the first 6 months of 2009 as compared to the same period a year earlier. BGN 100 mln were paid as recuperation to unemployed in the first half of the year. Meanwhile the Unemployment Fund reported income installments of BGN 80 mln. For the time being the Fund is far from the ‘red light’ due to the surplus from previous years when the unemployment rate was lower. However, the National Social Security Institute registered lower income to the Fund. The annual plan sees BGN 180 mln but the collectibility is below 50% in mid year.
Source: BGNes (24.07.2009)

Since the beginning of the crisis, the number of Bulgarians that have lost their job reached 100,000, the Confederation of Independent Trade Unions in Bulgaria said. The number of those that stopped paying insurances is higher. A great number of jobless Bulgarians from Spain is expected in the coming months. Spain is the country with the heaviest unemployment in EU, 17,92%, the highest for the last 11 years.
Source: Pari (27.07.2009)

Bulgarian Business Sentiment Index Keeps Falling in July Bulgaria's business sentiment index dropped 1,2 percentage points in July on a monthly basis due to negative developments in the industry and retail sectors, the National Statistics Institute (NSI) said on Tuesday. Except for the construction and services sector, whose sub-index marked a slight increase over the previous month, managers from all other sectors described the business climate as bad or at least said their expectations are moderate or not optimistic. This is the first time since the financial crisis of the 90s that pessimistic expectations are so firmly entrenched in Bulgarian business, experts commented. In July, the industry sub-index slumped by 4,3 percentage points from June, which is its lowest point since 2001 and the sharpest decline since the business sentiment index was first registered in 1999. The index gauging the climate in the services sector rose by 1,6 percentage point and overall managers expect a decrease in prices and an increase in demand. The July retail sub-index fell 1,5 percentage points due to the decrease in the volume of sales and managers' pessimistic expectations regarding the business situation over the next half a year.
Source: Darik Radio (29.07.2009)

Bulgaria’s business climate worsens for 3rd straight month Business climate in Bulgaria deteriorated in July, marking the third successive month of decline, showed data of the National Statistical Institute (NSI). The general index tracking industry, construction, services and retail shed 1.2% percentage points from the previous month reaching 10.2%, or a fragile 0.5 points above its lowest level since the crisis broke, the 9.7% bottom it hit in February. The NSI identified the bad shape of the industry and retail as the main drag on the business environment. Conditions in the construction and services sectors improved from June, according to company executives. But managers in all four sectors are prepping to take another axe on jobs over the coming months. The industrial sector is suffered the severest pressure, seeing its business climate index tumbled by 4.3% month-on-month to a seven-year low at 11%. The outlook for the next half is as downbeat. Order intakes by number of months have weakened to 4.4% in July from 5.0% in April. Last year businesses had orders for an average of 5.9 months. At the same time, capacity workloads in the industrial sector continued to shrink, reaching 63.9% in July compared with an average of 74.9% last year. Retail companies also consider the environment has deteriorated from a month before, dragging the index by 1.5 points as sales slipped deeper, spelling more trouble in the coming months. Expectations it has finally hit the bottom gave rise to a 2.4 point increase in the construction indicator. But while optimists in July outnumbered those in June, the NSI registered a drop in orders combined with an increase in delayed payments from customers. The services sector indicator also reflected upbeat expectations, going up by 1.6 points from June on the back of relatively better assessment of the current business environment. Assessment for demand in the past three months was also positive but the six-year outlook is on a negative note.
Source: Dnevnik (29.07.2009)

Budget Planned Wrongly by 2.5 Billion Levs Plus A deficit of 2.5 billion levs jeopardizes the budget, alarmed Bulgaria?s new Minister of Finance, Simeon Diankov yesterday. To his words budget, 2009 was devised at calculated economy growth of 4.7%. According to the last analyses of the Ministry of Finance, though, there will be no growth. ‘Even a negative growth of 6.3% for the year is predicted which means a discrepancy of 11% between what is envisaged in the budget and the real economic situation,’ Diankov said. To his words, revenues to the budget are by 16% less than planned. The lacking funds cannot be compensated by reduction of expenses only, he believes. Otherwise the social sector will be the one to suffer the most as well as the healthcare and education. For this reason only half of the money will be compensated via economies. ‘The other billion must be obtained from additional revenues to the fisc,’ Diankov said and added that was how the state could reach a neutral balance in the end of the years. The ministers have a week time to present a plan for reducing expenses in ministries. Their suggestions will be summed up by the Minister of Finance and discussed at the next sitting. The reduction of costs was the main topic of discussion at the Cabinet sitting yesterday.
Source: Standart (30.07.2009)

Ten Percent Lower Social Securities to Curb Unemployment in Bulgaria ‘The social security payments in Bulgaria should be lowered by five percent this autumn and by another five percent by the beginning of 2010. Unemployment in Bulgaria will be curbed, if social securities are slashed by ten percent over the next six or nine months,’ said Mr. Georgi Angelov, economist with the Open Society institute, in an interview. ‘This is hard to achieve in the conditions of widening global economic crisis. A tight control on the expenditures and the budgetary revenues would allow the implementation of large-scale reforms in the sector of taxation,’ Angelov says. According to him, a serious slash in the social securities will alleviate the labor market and improve the business climate. Thus, foreign investments will be attracted to the economy and new job positions will be opened. ‘We do not need a loan agreement with the International Monetary Fund, because the Cabinet can stabilize the budget on their own,’ Angelov added.
Source: Standart (30.07.2009)

A Gap of 16.8 B Levs Opens in Bulgaria?s Foreign Trade Last year, the deficit in Bulgaria?s foreign trade hit 16.815 billion levs, up by 2.54 billion levs set against 2007, according to information of the National Statistical Institute. Export rate has increased by 12.5%, up to 29.7 billion levs, but import has grown by 14.8% and currently amounts to 49 billion levs, added transportation costs and insurances. The export to the UAE has increased over ten times to 325.4 million levs and it is now considerably higher than the export to some European trade partners of Bulgaria, such as Slovakia, Slovenia and Hungary.
Source: Standart (31.07.2009)

Bulgarian industrial sector checks slide Jun’09 Bulgaria’s industrial sector curbed its year-on-year decline to 18.7% in June from 20% in the previous two months, according to the latest provisional figures of the National Statistical Institute (NSI). On the month, industrial output shed 6.9% against a 2.5% monthly increase in June 2008 when the global economy was still keeping clear of the financial meltdown that spawned the recession. Industrial sales -- an indicator of demand -- picked up 4.7% but tumbled 24.1% on the year at a more rapid pace than May’s 23.9%. “Thus presented, this is good news but it is still early to say whether we have hit the bottom and we’re seeing a turnaround,” said Lyubomir Hristov, former executive of the Bulgarian National Bank (BNB). He explained that if the rise in output comes triggers a rise in backlog and not sales the industry is not back to the sustainable growth path. “These are preliminary figures that will be revised,” Hrostov added. Vasil Velev, executive director of Stara Planina Hold and chairman of the Bulgarian Industrial Capital Association (BICA), said both demand and sales are gliding up at the moment. “Intermediaries are currently buying as much as they expect to sell. We won’t find if we’re really seeing a recovery before the autumn as August is a seasonally sluggish period and the market is low. Exporting companies will be the first to feel any upswing through sales to the European unions,” he explained. The printing industry notched up the biggest gain, propped by June’s European elections when voting papers were produced on a mass scale. Output surged a whopping 53.1% year-on-year and a record-shattering 42.4% month-on-month.
Source: Dnevnik (11.08.2009)

Salaries in Bulgaria Jump by 15,3% in Q2 of 2009 The average salary in Bulgaria increased by 15,3% in the second quarter of 2009 year-on-year. The National Statistical Institute (NSI) has announced Tuesday that the average salary reached BGN 588 in the second quarter of 2009 which is an increase by 4,4% compared to the first three months of the year. In "Culture, sport, and entertainment" sector the increase is 26,8%, and in the "Construction" field - 26,2%, in the end of June 2009 year-on-year. The raise is smalled in the extractive industry - only by 2,8%, and in the the "Professional activities and science research" field - by 3,8%. The average month salary in the "Financial and insurance services" sector is BGN 1 355, and in the "Productions and distribution of electric and heat energy" is BGN 1 321. The lowest average salaries get the employees in the hotel and restaurant business - BGN 387, in the "Administrative work" field - BGN 425, and in the "Agriculture, forestry and fish" sector - BGN 446. The average salary in the public sector increased by 16,9% in the second quarter of 2009 year-on-year, while the raise in the private sector was 14,3%.
Source: Darik Radio (12.08.2009)

Bulgaria's Foreign Trade Gap Starts Closing Thanks to Crisis Bulgaria's negative trade balance is becoming smaller thanks to the effects of the global economic crisis. This has become clear from preliminary data released Tuesday by the National Statistical Institute. Thus, in the first six months of 2009, Bulgaria had a negative trade balance of BGN 5,5 B, which is BGN 4,1 B (about 42%) smaller than in the first half of 2008. In the first six months of 2009, Bulgaria exported goods for BGN 10,6 B - a 30,3% decrease compared to the same period of 2008, and imported goods for BGN 16 B - a 35,3% decrease compared to January-June of 2008. Bulgaria's export in June 2009 declined by 28,7% down to BGN 1,95 B year-on-year, whereas the import declined by 42,3% down to BGN 2,6 B year-on-year. Over 64% of Bulgaria's export was destined for the EU in the first half of 2009, and over 60% of the total import came from there. Bulgaria's trade with third, i.e. non-EU countries was worth BGN 10,2 B, which is a 39,6% drop compared to the same period of 2008. The export for those countries has declined by 37,5%, and the import from them has declined by BGN 40,7%.
Source: Darik Radio (12.08.2009)

Bulgaria’s consumer prices dip for a third month Consumer prices in Bulgaria dropped for a third month in a row in July, picking up speed from the previous month, the country’s statistical office reported. Prices spiked on a year-to-year basis but inflation sped down to 1.6%. On the month, deflation was 0.6% versus 0.4% in June and 0.3% in May, dragged mostly by food and clothing prices. Food prices were undermined by seasonal factors, which caused deflation in June 2008, too, but July has seen an decrease in just three of the past ten years, But this time seasonal factors were combined with stale domestic demand, flagging investment activity and households’ efforts to stash away a larger portion of their income, analysts said. Lachezar Aleksandrov, a PhD student and lecturer at the University of National and World Economy in Sofia, said high deposit interest rates have also weighed on consumer prices as households set money aside. “It’s not a typical value for June. Deflation is generally a negative phenomenon but with the currency board leaving little room for manoeuvre in this respect, no active monetary policy could be implemented to curb the price slide. This trend is piling up more pressure on companies’ revenues. The only silver lining is that we could fulfill the final eurozone entry criterion,” he explained. A day before Michal Dybula, chief economist with BNP Paribas, said lacklustre domestic demand has compounded the trouble posed by sluggish demand in the European Union, where Bulgaria exports nearly 40% of its gross domestic product (GDP). The estimates of the National Statistical Institute (NSI) give new substance to the central bank forecast that deflation could persists until the end of the year. An inflation in the range 0%-1% is expected for the entire year.
Source: Dnevnik (13.08.2009)

The average household income per capita in June rose 9.9%, year on year, to BGN 305.23, National Statistical Institute data show. The average expenses went up 0.8% to BGN 273.56. Wages and pensions accounted for 80.4% of the total income. The share of wages and salaries rose 6.7%, year on year, while that of pensions jumped 30.3%. The income from self-employment, however, declined 3.1%.
Source: Pari (17.08.2009)

Bulgaria GDP down by 4,8% during 2nd 2009 Quarter Bulgaria's Gross Domestic Product (GDP) is down by 4,8% during the second quarter of 2009 compared to the same period of 2008. The data was released Monday in a flash estimate of the National Statistics Institute (NSI). The current GDP is estimated at BGN 15,825 B in current prices. The gross added value created by the sectors of the national economy is estimated at BGN 13,105 B in current prices. Compared to the second quarter of 2008 the gross added value is down by 3,4%. The GDP reduction in the second quarter of 2009 is attributed mainly to the decrease of the added value in the industrial sector - down by nearly 10% compared to the same period of 2008. In comparison with 2008, the real growth of the added value in the service sector is 0,3% while in the farming sector this value is down by 6,6%. The added value in the farming sector is 6% of the total added value, while the one of the industrial sector is nearly 29% and the services sector boost the major share of 65%. The official NSI data about the GDP for the second 2009 quarter will be published on September 10, 2009.
Source: Darik Radio (18.08.2009)

Bulgaria's economy decreased 4.8% in the second quarter of 2009, year on year, to BGN 15.826 billion at current prices, preliminary data of the National Statistical Institute show. Gross value added amounted to BGN 13.105 billion, down 3.4%. The drop was mainly due to the 9.8-percent decline in the industrial sector. The service sector grew 0.3%, while the agricultural sector decreased 6.6%.
Source: Pari (18.08.2009)

Bulgarian economy lost in downward spiral The economic recession has tightened its grip on Bulgaria in the second quarter of 2009 chasing investors away and crippling domestic consumption, showed flashed GDP data released by the National Statistical Institute on Monday. The Bulgarian economy dipped 4.8% year-on-year in April to June extending first-quarter drop of 3.5% and recording a negative growth for two consecutive quarters for the first time in 12 years. Yet macroeconomists expected grimmer results, with seven analysts polled by Bloomberg seeing a 5% slump. The deterioration was triggered by lower foreign investments and stagnant household consumption. Investments, which generate nearly 30% of the country’s gross domestic product (GDP), lost 13.9% in the second quarter while consumption, which makes over 82% of the GDP, narrowed by 8.2%. Higher government costs, on the other hand, for which the former Stanishev’s cabinet was heavily criticised, partially offset the adverse effect of private consumption. In addition, the trade deficit contracted by 44% in the first six months of the year cushioning the ill-effects of the crisis. “The narrow trade gap limits the GDP slump and the former government's policy ultimately gave the expected results, mitigating the slide, macroeconomist Lachezar Aleksandrov told Dnevnik. Lachezar Bogdanov of Industry Watch, who predicted a milder contraction of 4%, said the government spending was more the outcome of the political cycle and the pre-election situation than an anti-crisis package. Experts pointed to the softened demand and the tight credit conditions freezing corporate investments as the key factors for the economic slowdown. The trend is evident in the falling industrial production which shed 9.8% in the second quarter as services inched up 0.3%. But analysts give mixed full-year projections. “In times of crisis the government should take responsibility and encourage the economy with a balanced budget deficit," said Lachezar Aleksandrov calling for state investments in infrastructure. Bogdanov forecasts a slight growth in the final quarter, an improvement in the second half of the year and full-year contraction of less than 4.2%. The new Cabinet and foreign institutions are more downbeat on their full-year predictions. Finance Minister Simeon Djankov expects a 6.3% slump for 2009 and a 2% drop in 2010 against the IMF projections of 7% and 2.5%, respectively. The Bulgarian economy will shrink by 6% this year and by 2% next year, according to yesterday’s forecast of Greek EFG Eurobank.
Source: Dnevnik (18.08.2009)

Construction goes back to its lowest levels for the last four years. In the second trimester of 2009, local administrations have issued permits for construction of 1 832 residential buildings with 4 506 lodgings and 637 484 square meters built area, of 79 administrative buildings with 88 596 square meters built-up area and of 1 160 other buildings with 661 355 square meters built-up area. The issued permits for constructions of new buildings have decreased by 32 %, compared to the same period of 2008. Administrative buildings have decreased by 26.9 %, while the other types of buildings by 24.3 %. A decrease in the built-up area has been registered, as in residential buildings it is by 61.4 %, in administrative by 29.3 % and in the others by 35.3 %. In the second quarter of 2009 the biggest number of permits for construction has been issued in the following regions: Sofia city-241, Plovdiv-219, Sofia-182, Bourgas-173. Lodgings in Sofia City are 637, in Plovdiv-611, in Varna/589 and in Bourgas-461.
Source: NSI (24.08.2009)

Bulgaria Unemployment Rate up to 6,3% in 2nd Quarter of 2009 Bulgaria's unemployment rate has reached 6,3% in the second quarter of 2009, which is a 0,5% increase year-on-year. The total number of unemployed Bulgarians in the age group 15-64 is 222 600, the National Statistical Institute reported. In the rural areas and small villages the rate hits 9%, which is 3,5% more than the rate in the cities - 5,5%. The number of unemployed people who have not been employed for less than one year has increased by 20,3% compared to the second three months of 2008, and reached 122 900 in the second quarter of 2009 (44,8% of all unemployed). The number of unemployed people with prior experience has increased in the second quarter of 2009 year-on-year, compared to the number of those who are looking for their first job. The number of unemployed Bulgarians in the age group 15-24 is 42 300, and the ratio of the youth unemployment is 14,6% of the overall number.
Source: Darik Radio (24.08.2009)

Despite prices’ decline every seventh office in Sofia stays empty Even after the National statistics institute registered, that our economy is officially in recession, investors does not come to a halt and office buildings kept on multiplying in Sofia. It turned out that the result is bad for entrepreneurs but goods for tenants. Just for the first six months of the year unoccupied offices sites in Sofia reached 13.4 %, which amount to 130 000 square meters. According to brokers’ data, in the central area of the city on the average of every seventh office is empty. In the periphery the situation is even graver, as every fifth office is empty there. In the periphery 592 000 square meters of offices have been rented or are tendered for rent, but still 116 000 square meters of them are empty. It is expected that unoccupied sites will continue to grow, with the increase in the number of projects in process of construction. The latter are situated at and around main boulevards in the periphery. In the center of Sofia the construction of new office buildings has not been initiated.
Source: expert.bg (25.08.2009)

The business climate indicator fell 1.3 percentage points in August, month on month, to 9%, the National Statistical Institute said. That is the lowest point reached since October 2008, when the indicator started decreasing. Only the industrial sector registered a slight rise in business sentiments: 0.3 points. In all other sectors the drop was above 2 points.
Source: Pari (31.08.2009)

The number of Bulgarians who travelled in the country in the second quarter of 2009 rose 16.8%, while trips abroad dropped 30%, data of the National Statistical Institute show. A total of 1.2 million people took trips, up 6.3% year on year. During private trips Bulgarians spent an average of BGN 168.9 in the country and BGN 411.8 abroad, compared to BGN 119.4 and BGN 884.2 spent on business trips.
Source: Pari (31.08.2009)

Producer prices fell 10.6% in July, year on year. On a monthly basis, commodities cheapened 1%, National Statistical Institute data show. Prices in mining fell 19.2%, year on year. The drop in the processing industry was 12.2%. The sector of production and distribution of electricity, heating and gas registered a 3.2-percent fall. Month on month, processing and mining prices went up 0.9%.
Source: Pari (31.08.2009)

Bulgaria's Economy Grows 5% at the End of GERB Mandate An economic growth of five percent is expected at the end of the term in office of the Borisov-led Cabinet. In 2013, Bulgaria's GDP growth will reach its pre-crisis levels - 6.2% in 2007 and 6% in 2008. These levels are provided in the Finance Ministry's macroeconomic framework for the period 2010-2013. Bulgaria's economy is expected to take the road to recovery in 2011, the main economic motor being the export. However, recession will continue next year and the economy will slump by another two percent. In 2011 Bulgaria's economy is expected to grow 3.8% and by 4.8% in 2012. Economists forecast five-percent economic growth in 2013. The revenues to the budget for the three following years will be 24,146 billion levs, 24,964 billion levs and 25,885 billion levs, accordingly. This year's forecasts are not optimistic at all: the expected collapse for 2009 stands at 6.3%. The investments share will shrink down to 26,5% of GDP while in 2008 it amounted to 38,4%. Consumption will decrease by 4.2% and the import of goods and services will go down by 19,5%. The export will shrink with 12,3%. In the next four years the export will restore the rates from 2008, but the import will be by four billion euro less than it was this same year due to restructuring of domestic demands. This will decrease the foreign trade gap. It is expected that the current account deficit will go down to 7.2% of the GDP in 2013; for comparison, the forecast current account deficit for this year was 11%. With the recovery of the economy, prices will also grow up. 2009 inflation will be 1,8% and for 2010 it is expected to be 2,2%. In the period 2011-2013 the price growth is expected to be commensurate with the EU levels. The finance ministry envisages in 2010 the direct foreign investments to cover the current account deficit. Next year in Bulgaria will enter 3.3 billion euro at 2.5 billion euro negative balance on the current account. In 2010 unemployment in Bulgaria will reach a peak of 11,4%. However, until the end of term of the incumbent government it will be decreasing.
Source: Standart (02.09.2009)

Bulgaria New Residential Construction Continues Unabated The momentum in Bulgaria's real estate boom continues despite the financial crisis with the number of newly constructed residential buildings marking a 24% increase in the second quarter of the year, official data shows. A total of 5 888 new apartments have appeared on the market in the period April-June, which is up by 51% over the first quarter of the year. The coastal cities of Varna and Burgas lead the ranking with 1 600 and 1000 new apartments respectively. The capital comes in third with no more than 549 newly-built flats, located in 35 residential buildings. Nationwide, the construction of residential buildings in the second quarter of the year gained 7% over the same period last year.
Source: Darik Radio (04.09.2009)

Unfinished housing projects masked as new construction Newly-built housing properties booked a better-than-expected 51.1% rise in the second quarter compared with the first and 30.2% year-on-year, the statistics office report. The latest figures raised quite a few brows with the industry, which said this is not a fair representation of the state of a market battered by dry funding in the aftermath of the recession. Entrepreneurs and real estate agents said the numbers published by the National Statistical Institute (NSI) count not new homes but issued building permits. A total of 3,897 housing units made their way into the market from January to March, which swelled to a staggering 5,888 over the next three months, according to NSI. As many as 1,665 mushroomed in Bourgas, on the southern Black Sea coast, followed by Varna, up north, which became home to 1,204 units. New flats in Sofia added up to 549. Not a single residential building popped in Montana, Razgrad and Haskovo. The market saw 679 newly-built housing buildings from April to June, up 24.1% from the prior comparable period and 6.9% from the twelve months before. Total living space in the new housing units stood at 705,569 square metres, which makes an average of 72 sq m per flat, down from 80 sq m in 2007. At the end of August, the NSI reported a 24.6% increase in new building permits for the second quarter. However, home numbers dropped by 31% and total living space shrank by almost 29%.
Source: Dnevnik (04.09.2009)

Mexican Wave of Job Cuts in Bulgaria Bulgaria should get prepared for large-scale job cuts till the end of 2009. Trade unions and employers alarmed Bulgaria's Minister of Social Policy and Labour Totyu Mladenov about an imminent unemployment avalanche. It is expected that the number of unemployed Bulgarians will go beyond 350,000 by December this year. This, however, is just the number of the officially registered unemployed at the state employment offices. According to trade unionists, the actual number of jobless citizens will exceed 500,000. "You see what the tendencies are; it is more than evident that unemployment will increase," Deputy Minister of Social Policy and Labour Krassimir Popov commented for The Standart. Bulgaria's rate of unemployment for July was 7.62 percent or 282,111 people lost their jobs, National Employment Agency officials explained.
Source: Standart (04.09.2009)

Foreign Investments in Bulgaria Reach BGN 12 B Foreign direct investments to Bulgaria slid down to 12.054 billion levs (1 EUR = 1 BGN) in 2008 i.e. they were 27.4% less in amount compared to 2007 (BGN 16.601 billion). According to preliminary data, in 2008 Bulgaria generated a gross domestic product of 66.728 billion levs, or 10.208 billion levs more than the GDP in 2007. If estimated on the basis of prices comparable to the prices in 2007, Bulgaria's GDP would be 59.919 billion levs, or 6% more than in 2007. Thus, this country has scored its 12th GDP rise in 13 years since 1995. The average inflation rate in 2008 was 7.8%, if measured by the consumer data index.
Source: Standart (08.09.2009)

Newly constructed companies register increase for the second trimester of 2009 According to the National statistical institute’s preliminary data, newly constructed buildings in the second quarter of the year are to the amount of 679, which is an increase by 24.1 % compared to the first trimester of the year. The newly-built premises in them are by 51.1 % more, as compared to the previous quarter and are to the amount of 5 888. Compared to the same period last year, the number of newly built buildings has risen by 6.9 %, while that of the premises in them by 30.2 %. The biggest number of residential buildings and premises have been constructed in Varna region- 157 residential buildings with 1204 lodgings, in Bourgas region –134 residential buildings with 1665 lodgings, followed by Plovdiv-43 residential buildings with 414 lodgings, Sofia region- 40 residential buildings with 78 lodgings, Stara Zagora region –36 residential buildings with 139 lodgings and Sofia region (capital city) 35 residential buildings with 549 lodgings.
Source: Other (08.09.2009)

Woes deepen as Bulgaria’s GDP shrinks by 4.9% Jun’09 Bulgaria’s statistical office all but confirmed flash estimates of the economic decline unveiling a 4.9% contraction at the end of June in comparison with a year earlier. Provisional figures indicated a 4.8% reduction in gross domestic product (GDP). The latest figures place the Bulgarian economy in the red for the first time for two straight quarters following the 3.5% drop in the first three months. Experts pinned the blame on faltering consumer spending coupled with banks’ reluctance to lend that spawned a freeze in industrial investments by private companies. Between April and June, consumption dwindled by 3.7% from the same period of 2008, which is a slight improvement from the first-quarter 5.4%. But households have snapped up their purses, bringing down demand, which accounts for a sizeable share of total consumption. Public spending swelled by 8.1% but this is hardly enough to offset the waning private consumption. The gloomy economic outlook is stoked by a slowdown in Gross Value Added (GVA) for all three sectors. Industrial production, which speaks for 31% of the nation’s GDP, shrank by 7.2% year-on-year in the second quarter against 12.4% in the first. The services sector (62.6% of GDP) added 1.4%, falling short of an expected 2.5% rise. Agricultural production (1.7% of GDP) was down by 6.3%. Credit growth decelerated to a scanty 10% year-on-year and exports, while still outstripping imports, slowed by 30%. Foreign direct investments (FDI), which fueled the growth of a once-thriving economy, contracted in half.
Source: Dnevnik (11.09.2009)

Bulgaria’s industrial output slips into stagnation Jul’09 Bulgaria’s industrial production index plummeted by 18.9% year-on-year in July, staging a marginal 1.6% increase from the previous month, showed provisional data by the statistical office. For comparison, the index shed 18.7% in June and was expected to turn around after a a solid 6.9% monthly rise and a precipitous slide of more 20% in the three months before, according to the National Statistical Institute (NSI). Stagnation battered sales of industrial manufacturers, which suffered a steeper 24.5% decline in July compared with 24.1% in June and 23.9% in May. This was matched with a slower recovery on a monthly basis of 0.4% versus 4.7% in June. The retail and construction industries are also sinking under the weight of the economic recession. Retail sales plunged by a provisional 17.7% year-on-year bounced back by 5.6% month-on-month. The building sector, which used to be the engine of the country’s burgeoning economies in the year before the crisis erupted, posted a 14.5% year-on-year drop in output as the crisis took a heavy toll on the private sector. On the other hand, propped by public procurements, infrastructure projects held their ground. Bulgarian construction entrepreneurs are finding it hard to secure cash to complete projects they have started and are shifting their energy to infrastructure projects.
Source: Dnevnik (11.09.2009)

Bulgaria GDP Sinks 4.2% In the first half of 2009, Bulgaria’s gross domestic product was 4.2% lower than in the same period last year, the National Statistical Institute reported. Estimated on the basis of current prices, Bulgaria generated a GDP of BGN 16.3 billion (8.3 billion euros) in the second trimester of 2009, or 2,150 levs (1,099 euros) GDP per capita. Translated into US dollars through a six-month average dollar exchange rate of $US 1/BGN 1.43, this spells a total GDP of $US 11,4 billion, or $US 1,500 GDP per capita. The bottomline is: GDP in the first half of 2009 decreased by 4.9% in juxtaposition to the GDP generated in last half of last year. In nominal terms, Bulgaria scored a GDP of BGN 30,3 billion in the first half of 2009 and registers a persistent slowdown in industry, which is 18.9% against end-July 2009. According to preliminary data, there was a 24.5% company turnover downslide end-July 2009 as compared with end-July 2008. However, there was an average turnover growth of 0.4% on a month-on-month basis. Bulgaria’s construction sector dwindled by 14.5% in a year. Consumption seems to continue to shrink. Sales revenues in July, 2009, were down 17.7% compared to July 2008.
Source: Standart (11.09.2009)

July export highest since the beginning of the year Bulgaria’s export goes up for the third month in a row and it reached its top since the beginning of the year – over BGN 2 bln. It is also the first time since April that the trade deficit increases on monthly basis due to the faster growth of import. ‘Economy tries to recover itself from the crisis. Export grows and this is very good news”, said Velichka Rangelova, an ex deputy head of NSI. According to her the higher import is not to be disturbing as it comes from the higher price of oil, as well as from the recovery of the manufacture. “According to this data, the estimates for a drop in the Bulgarian economy are totally false, the private sector proved its flexibility”, she added. The deficit grew to BGN 826.5 mln from BGN 668.4 mln in July. Import increased by 8.4 percent to BGN 2.84 bln, while export is up only 3 percent to BGN 2.01 bln. With the end of recession in France and Germany, many analysts expect that this would push the smaller EU member states from Central and Eastern Europe out of the crisis. Poland, the Czech Republic and Slovakia already reported possitive figures for their GDPs.
Source: Dnevnik (14.09.2009)

Preliminary data of National Statistical Institute show that industry in Bulgaria has the chance to escape the second slump in the sector. Turnover added 0.4% in July compared to June. Sales income gained 5.6% and production grew 1.6% compared to the month before, the first growth for the year. If the tendency is preserved, the country may expect growth in the third quarter year on year.
Source: Pari (14.09.2009)

Construction retains its monthly level, NSI’s statistics shows Construction output in July 2009 keeps its level, compared to the previous month. There is a 0.8 %-increase in civil/engineer construction. Construction of buildings has decreased by 0.4 % and because of its essential relative share (64.6%) in general construction, it influences substantially construction production common index. In July 2009, total construction production decreased by 20.6 %, while the decrease in civil construction amounts to 0.4 %, compared to 2008, which is indicative that construction entrepreneurs have difficulties in completion of buildings and direct their efforts towards termination of construction facilities, connected with infrastructure.
Source: 1kam1.com (14.09.2009)

Prices in Bulgaria Continue to Fall down Prices in Bulgaria have been falling for four months now. In August, the prices of some basic goods fell 0.2% from July, the National Statistical Institute said. Thus, the inflation for the first eight months of the year is negative - minus 0.1%, mainly due to the falling prices of footwear, clothing items, foods and beverages. Last month, the statistical institute reported a deflation of 0.6% on annual basis, against 0.4% in June and 0.3% in May. The inflation in August was 1.3% y/y.
Source: Standart (15.09.2009)

Foreign Investments for 2009 down by EUR 2 B The foreign investments in Bulgaria in 2009 will be by two billion euro less compared to 2008, reads the prognosis made by the Bulgarian Foreign Investment Agency. At the end of the year the total amount of the direct foreign investments in Bulgaria for 2009 is expected to reach 4 billion euro, as for 2008 the total amount of the investments was 6 billion euro. This year France takes a leading position in the ranking of top investors in Bulgaria. France is on fourth place and shares its position with states with traditions in investing in this country as the Netherlands, followed by Austria and Germany.
Source: Standart (15.09.2009)

BGN 321.85 was total income of a member of a household on the average in July this year, as it has increases by 10.5 % compared to the same period of 2008. The biggest part of the monthly income, or 78.8 % was formed by salaries and pensions. Total expense for a member of a household amounts to BGN 289.41. Again most essential expenses are those for food, as well as utility costs, which take up more than 51 % of total expenses. Costs for food and non-alcoholic drinks increased by 3.5 % to BGN 107.77 per person in July, while the relative share of these expenses keeps its level of 37.2 %.
Source: Darik Radio (16.09.2009)

Some 25,000 State Employees Lose Jobs Due to World Crisis "Fifteen percent of the state employees in Bulgaria will be discharged from their job positions in the first months of 2010," Deputy Minister of Finance, Ana Mihaylova, announced after yesterday's sitting of Bulgaria's government. The large-scale dismissals are one of the 82 anti-crisis measures, adopted by the Council of Ministers. In Mihailova's opinion, the dismissals will affect all the levels of the administrative hierarchy, including the municipal and regional governments. According to data, released by the Ministry of Finance, the total number of state officials is approximately 160,000, i.e. a 15% dismissal means that some 25,000 of them will remain without jobs. Relief of the insurance burden is among the anti-crisis measures, adopted by the cabinet. In 2010, it will be by two percent lower than in 2009 and will continue to decrease by 1% each of the next three years from Boyko Borissov's term of office.
Source: Standart (24.09.2009)

Bulgaria Govt Invests BGN 1 B to Fight Unemployment in 2010 Bulgaria's Labor Ministry is going to invest about BGN 1 B on the labor market in 2010 in order to tackle the unemployment that is expected to result from the economic crisis. BGN 250 M are going to come from the EU funds under the "Development of Human Resources" Operational Program. The state budget will provide BGN 400 M; half of those will be spent on active labor market measures, and the other half - on passive measures. The other BGN 400 M are funds to retained by the Bulgarian businesses when the employers' social security payments are reduced by 2% starting January 1. The priorities of the Labor Ministry in 2010 will have to do with developing new policies on training and qualification. Minister Mladenov cited data from a World Bank report saying that 25% of the people between 15 and 24 years of age in Bulgaria did not study, work, or had any desire to pursue such activities. One of the short-term measures to be adopted by the Ministry is increasing from the period for receiving unemployment benefits from 6 to 9 months if the unemployed person is involved in some kind of qualification training.
Source: Darik Radio (30.09.2009)

Over 300,000 Bulgarians Lose Jobs "Over 300,000 are unemployment in Bulgaria today," Bulgaria's Minister of Labour and Social Policy, Totyu Mladenov reported the scary facts. In fact even more people are actually jobless because not all unemployed are registered in the unemployment agencies. Minister Mladenov believes that 8% of the Bulgarians in active age are without a job. "The budget of the National Social Insurance Institute for the year is planned at the basis of forecasts for 56,000 new unemployed. The numbers of the unemployed Bulgarians in the last months, however, have exceeded 110,000," Mladenov explained. For this reason twice more money is planned in the budget for next year for insurances. The state will also cover over half a billion-lev deficit in the budget of the National Social Insurance Institute.
Source: Standart (30.09.2009)

Producer deflation slows down in Aug’09 Bulgaria's production prices fell for an eighth month in a row in August, hitting a new yearly record at minus 10.8% but also decelerating the downward pace, shedding only 0.2 points on the month against a 3.3-point decline in July. According to figures of the National Statistical Institute (NSI), the annual price drop was sharpest at 12.2% in the processing sector, though prices picked up 0.3% from July. Experts assuaged fears of a deflation spiral saying the producer decline does not push consumer prices down for now. The manufacturing industry was the most severely pounded by the crisis, with core metal prices dipping 27% in August from the same month a year earlier as car production lost 17.3% and foodstuff shaved 6.2%. Leather processing and production and motor vehicles manufacturing, excluding automobiles, bucked the downtrend, picking a respective 8.6% and 7.8% on the year. At the same time, mining and quarrying industry prices perked up by 3.5% in August from the previous month. The chemical sector showed a price uptrend as well, whereas electricity, heat and gas production and supply headed south. The overall price downshift was chiefly attributed to cheaper resources, which is the situation in the EU. "The current state of events is just a correction of what was happening before the crisis broke out. It has a cool-down effect on the previous overheating though it would trim company revenues in the near-term," said economist Dimitar Chobanov projecting a price spike in the second half of next year as a result of the higher excises and the global liquidity infusion. The special producer index gauging the dynamics on the domestic market alone, again slipped slower by 9.8% year-on-year and 0.3% on the month.
Source: Dnevnik (30.09.2009)

Moody's: Per capita income could be at European level in Bulgaria after 40-45 years According to Moody's, the per capita income in Bulgaria and Romania could reach European levels after 40-45 years and in other Central and East European states in 30-40 years instead of 15-20 years as anticipated before the economic crisis, Reuters informs. One of the crisis results is that the convergence process of states in the area as concerns the per capita income will be slower and will last longer than anticipated, according to an analyst of the financial evaluation agency. Some analysts estimated , before the crisis, that the convergence will last 15-20 years. Now it will be 30-40 years in some states and more in others, said Kenneth Orchard, a Moody's analyst in charge of Poland, the Baltic area and the Balkans. He pointed out that in Poland the convergence may last 30 years while in Bulgaria and Romania 40 to 45 years.
Source: Standart (01.10.2009)

Construction production to the amount of BGN 21 million was produced in 2008 This is a 27.1 % increase, as compared to the previous year’s output. In 2008 the amount of companies, engaged in construction activity which present their annual reports before the NSI are 21 427. The number of those, which prepare financial statement, increased by 17.9 %, while those that did not decreased by 4.4 %, compared to 2007’s data. Residential construction’s production increased nominally by 23.3 %, as compared to 2007, while that of civil or engineering construction by 35.6 %. The latter shows that during the last year, companies preferred to invest mainly in construction facilities connected with infrastructure. Registered revenues from installation work at present prices in 2008 are to the amount of BGN 17 716 million, as 67.2 % of them are from residential construction and the rest 32.8 % from civil/engineering construction. This rate for 2007 is 69.2 % from residential and 30.8 % from civil/engineering. According to preliminary data, construction production’s turnover has increased by 23.7 % as, compared to 2007, and thus reaches BGN 20 189 million. Calculated net added value in construction branch is increasing by 10.3 % in comparison to 2007 to BGN 2 943 million.
Source: expert.bg (01.10.2009)

Euro area unemployment highest since March 1999 The euro area (EA16) seasonally-adjusted unemployment rate was 9.6% in August 2009, compared with 9.5% in July. It was 7.6% in August 2008. The EU27 unemployment rate was 9.1% in August 2009, compared with 9.0% in July. It was 7.0% in August 2008. For the euro area this is the highest rate since March 1999 and for the EU27 since March 2004. Eurostat estimates that 21.872 million men and women in the EU27, of which 15.165 million were in the euro area, were unemployed in August 2009. Compared with July, the number of persons unemployed increased by 236 000 in the EU27 and by 165 000 in the euro area. Compared with August 2008, unemployment went up by 5.008 million in the EU27 and by 3.224 million in the euro area. Among the Member States, the lowest unemployment rates were recorded in the Netherlands (3.5%) and Austria (4.7%), and the highest rates in Spain (18.9%) and Latvia (18.3%). Compared with a year ago, all Member States recorded an increase in their unemployment rate. The smallest increases were observed in Belgium (7.5% to 7.9%) and Germany (7.2% to 7.7%). The highest increases were registered in Latvia (7.4% to 18.3%) and Estonia (4.1% to 13.3%). In August 2009, the youth unemployment rate (under-25s) was 19.7% in the euro area and 19.8% in the EU27. The unemployment rate was 9.7% in the USA in August 2009. In Japan it was 5.7% in July 2009.
Source: Capital market (01.10.2009)

Wave of Lay-offs Hits Bulgaria About 150,000 Bulgarians may lose their jobs next year according to Mr. Plamen Dimitrov, deputy leader of the Confederation of Independent Trade Unions in Bulgaria (CITUB). Yesterday, he attended a forum dedicated to unemployment. "If this dark forecast comes true, the number of unemployed Bulgarians may rise to half a million. Serious shocks are expected on the Bulgarian labor market next year," said Bozhidar Danev, chairman of the Bulgarian Industrial Association, quoting analyses of employers. The first months of 2010 will be especially hard for the employers, although Bulgaria's economy is expected to take the road to recovery. "The anti-crisis plan of the government, providing 15% downsizing of the state administration, will aggravate the situation," Danev added. To his words, the employees aged 24-29 will be worst affected by the wave of lay-offs. During crisis, the employers mostly rely on senior, experienced officials.
Source: Standart (06.10.2009)

Bulgaria's Budget Deficit Reaches 7.5 B Levs End-2009 According to preliminary analyses of the finance ministry, the gap in Bulgaria's budget will reach seven and a half billion levs at the end of the year and the revenues will be by 25% lower than it was provided initially. The revenues from VAT have the lowest collectibility. According to the early report of the finance ministry, at the end of the year the country's GDP will be 63.5 billion levs, or ten billion levs less than it was initially expected. The team of Finance Minister Simeon Dyankov forecast 63.4 billion levs GDP in the draft budget for next year. By the end of the year the public will receive from the budget but 23% less money than it is postulated by the current legislation, finance experts said. The subsidies for the state administration have been cut down by ten percent because of the falling budgetary revenues and the rest ninety percent of the subsidies were cut down by fifteen percent in July because of the economic crisis.
Source: Standart (07.10.2009)

New construction down 1/5 The new housing, office and retail buildings in Bulgaria fell by more than 22% in August 2009 compared with the corresponding month of last year, the National Statistical Institute (NSI) said Friday. Civil construction pulled off a smaller, 4.2% decrease. The total construction stock slipped by 17% year-on-year and 11.9% month-on-month. Simeon Peshov, chairman of the Bulgarian building chamber, said more trouble lies ahead, estimating that 30,000 builders have gone out of job so far in the year. A total of 1,550 companies have failed to renew their registration with the chamber and have practically dropped from the market as they wait for better times, he said, adding that 90 percent of the construction firms that have called it quits are small-sized.
Source: Dnevnik (13.10.2009)

Bulgaria’s trade deficit shrinks over 44% Y/Y Aug’09 Bulgaria’s trade gap extended the contraction in August, when it fell to BGN 500.4 million by FOB (free-on-board) prices, its lowest monthly value since January and since the crisis erupted, the statistical office said. On an annual basis, the shortfall narrowed by 54.4%. In the eight months of the year, the deficit totalled BGN 6.053 billion, or a 44.3% decline in the corresponding period of 2008. The contraction was helped chiefly by curbed export slowdown for several months in a row against the backdrop of a relatively steady increase in imports. “August saw the smallest drop in imports since the start of the year. The 25% decline represents its best value so far in the year and is a massive rebound on April’s 45% fall. Imports continue to tumble relatively fast, bringing the deficit to its lowest point since January,” Georgi Angelov, senior economist with the Open Society Institute, told Dnevnik. Exports have been perking up for three or four straight months and foreign demand seems to be bouncing back, while Bulgarian companies managed to cut down prices, he added. According to the National Statistical Institute (NSI), exports in the eight months through August added up to BGN 14.517 billion compared with BGN 20.711 billion a year before. Imports over the review period came in at BGN 20.571 billion, which is approximately 35% less than January-August 2008. Bulgaria’s trade balance with the European Union (EU) was negative at BGN 2.969 billion. Turkey solidified its leadership position as Bulgaria’s largest non-EU export market, even though exports were down by 48.3% year-on-year to BGN 991.7 million. Next came Serbia and Russia.
Source: Dnevnik (13.10.2009)

Inflation in Bulgaria Freezes at 0% in September Prices in Bulgaria have frozen and the inflation rate in September is precisely 0%, announced sources from the Bulgarian National Statistical Institute (NSI). Only three months since the beginning of this year register slight increase of prices. In the other past months of 2009, the inflation rates kept on dropping while in September they came to a complete standstill of 0%. The inflation rates in the first nine months of 2009 stood at minus 0.1%. In the one-year period between September 2008 and September 2009 the prices went up by only 0.2%. As a result of these processes, saving money turns to be really profitable: while in 2008 the interests on deposits failed to even cover the inflation rates, in 2009 prices were practically frozen and the banks fixed high interest rates of about 8% on an annual basis for deposits in BGN.
Source: Standart (14.10.2009)

Bulgaria Loses BGN 83 Billion Due to Crisis The global crisis pinched off BGN 83 billion from Bulgaria's households, mainly due to the crash in real estate prices. "This amount represents 130 percent of Bulgaria's GDP," UniCredit Bulbank senior economist Kristofor Pavlov said in a roundtable discussion at the Euromoney Regional Finance and Investment Conference for South East Europe. "Ever since the beginning of the crisis, property prices in Bulgaria slid by 24%, and continue to dip," he added. In Pavlov's opinion, a recovery is likely no sooner than the second half of next year, when GDP is expected to go up. But still, UniCredit Group see a 2.5% downturn in Bulgaria's economy at the end of 2010. The crisis will grow to be felt as even more painful next autumn due to a rapid surge in the rates of unemployment. Unemployment will reach its peak 12 months after the Bulgarian economy "hits the bottom," which is currently the situation. This means that the loss of jobs will continue to reach its peak at the beginning of next winter, the economist explained. The crisis increases the savings of the Bulgarian households, which now put aside some 6%-7% of their incomes. Data shows that in Bulgaria an increase of the savings by 1% usually results in a drop-down of BGN 300 million in the GDP, which means that the country's GDP goes down by 0.5%. The credit spread is narrowing which is another manifestation of the crisis. In the past months of 2009 the newly granted credits are by 70% less than they were in the same period of 2008. Most of them are actually re-negotiated existing loans which means that the current credit rates stand at 0%. The reason for this is not to be searched in the banks, which can ensure a credit growth of some 5%-6%, but in the low demand for credits, commented the expert of UniCredit Bulbank. The start of getting out of the crisis will happen where the crisis itself began in Bulgaria - the industry and not the domestic demand, experts from the bank believe. The sectors which will lead the economy out of the crisis will be agriculture and food productions, also the textiles and furniture industries. The main impulse for development will come from the development of infrastructure - the construction of roads and highways as well as the absorption of EU funds. Economists have calculated that if Bulgaria manages to absorb 100% of the planned EU funds for the country by 2013, the economy growth resulting of absorption of EU funds will be 4% every year.
Source: Standart (21.10.2009)

Bulgaria Unemployment Rate Hits 8% Mark The unemployment rate in Bulgaria passed the 8% psychological barrier, reaching 8,03% in September 2009. The data was published by the National Employment Agency, confirming an earlier report of the Minister of Labor and Social Works, Totyu Mladenov. As of the end of September, there were 297 515 jobless people which is 6 000 more than in August 2009. Also in September, however, 41% more people found a new job, compared to August. The average unemployment rate in Bulgaria for the first nine months of 2009 is 7,22% while, according to Eurostat data, the average unemployment rate in the EU is 8,65% for the first eight months and 9,10% in August. The unemployment rate is the highest in the service sector – 49,8%, followed by industry – 29,7%. The manufacturing industry, retail, construction sector, and state administration, register unemployment rates of 20,8%, 16,9%, 8% and 7,3% respectively. In seven of the country's regions – Sofia City (2,4%), Burgas (4,17%), Varna (5,62%), Gabrovo (5,83%), Stara Zagora (6,63%), Plovdv (7,39%) and Pernik, (7,97%) the September unemployment rate is lower than the country's average while the Smolyan (14,78%), Montana (13,61%) and Targovishte (13,58%) regions register the highest unemployment rates.
Source: Darik Radio (21.10.2009)

Public Salary in Bulgaria Frozen for Three Years The funds for civil servants' salaries will be frozen for the next 3 years. Till 2013 the cabinet to allot BGN 3.2 billion per year for payments in the state institutions, provides the tree-year prognosis of the ministry of finance, attached to Bulgaria's budget for 2010. The document provides salaries of civil servants to be increased only if lay offs are carried out. The idea is to bind the wages with the accomplished work. After 2009 plummet of economy by 6.3%, in 2010 is expected an additional 2% fall. In the next two years Bulgaria's economy will start an upward development. In 2011 the expected GDP is 3.8%. In 2012 the GDP will grow by 4.8% more and then Bulgaria's economy will reach the level of 2008, before the crisis in the USA to hit Europe and Bulgaria respectively.
Source: Standart (23.10.2009)

Bulgaria housing prices tumble 28% Y/Y Q3’09 – NSI Home prices in Bulgaria have nosedived by 28% in the third quarter compared with a year ago, show figures of the statistical office. According to Strahil Ivanov, owner of local realtor Yavlena, the prices of holiday properties and in downtown locations have slid an even steeper up to 40%. But Hristo Boykov, owner of property agency B&H Properties, said the downturn has stopped, with several Sofia regions including Lyulin seeing a slight rebound. The National Statistical Office (NSI) estimated that housing prices have dropped by 5% in the third quarter from the second, when they shed almost 10% quarter-on-quarter. Between January and March, prices dipped 12.4%. The sharpest declines were recorded in Montana (16.3%), Vidin (10.1%) and Shoumen (10%). Housing prices in Sofia fell by 6%. Statistics by Raiffeisen real Estate published last weak showed that residential property prices in the capital and Bulgaria’s second largest city of Plovdiv were down by nearly 17% in the third quarter from the same period of last year. Brokers are divided as to which way the market will take. Strahiv Ivanov predicted home property prices will hit the rock bottom in the winter. Hristo Boykov reckons that with no deals being struck, the housing market is as “dead” at the moment as it was before and it is being manipulated by buyers hunting for buy low to sell high. He predicted prices will skyrocket before cooling off again to make way for a gradual rebound.
Source: Dnevnik (26.10.2009)

T he state budget has to provide BGN 5.5 billion in 2010 for the State Public Insurance funds. Employers' and employees' payments are planned to amount to BGN 3 billion. Thus the share of taxes as a source of financing pensions and various allowances will reach nearly 70%, compared with 50% in 2009. The increasing dependency on the budget may jeopardise social payments if tax revenue falls short of projections. The replacement of social security contributions with tax revenue has been under way since 2001, when the gradual reduction in installments began. Biased experts call that 'erosion' of the three-pillar pension system, though 'failure' is probably a more appropriate word. The model was introduced in 2000 to achieve three key goals, said Ivan Neykov, minister of labour in Ivan Kostov's administration. The system had to attain financial independence; a reserve had to be accumulated in the system's solidarity pillar; pensions had to gradually start rising. That had to be fulfilled within a ten-year period. Instead of becoming autonomous, the social security system today receives more subsidies and budget transfers. No reserve has been accumulated, although the surplus was expected to reach BGN 300 to 350 million by now. Instead, a deficit of BGN 2.4 billion is emerging for next year. As for the third goal, the government has announced that pensions will stay unchanged, so this has not been achieved either, Neykov pointed out.
Source: Pari (27.10.2009)

Bulgaria business sentiment stages new slump Sep ‘09 Bulgaria's business confidence slumped for another consecutive month in October, when the business climate index shed 1.3 percentage points from September, the statistical office said. The construction sector was most down in the dumps of all, according to the National Statistical Institute (NSI). The mood dampened in all other sectors and the industrial sector was the only one to buck the trend. However, together with the construction and services sectors, it is bracing itself for job cuts. In the industrial sector, the index edged up by 2.1% from the previous month, mostly on the back of higher expectations about the shape of companies in the six months ahead. Businesses are also upbeat about production activity and exports in the next there months. The uplift is underpinned also by bulkier order backlogs that in October could guarantee production for the next 4.1 months. Still, this is a staggering decrease on October 2008, when orders could guarantee production for almost six months. Between July and October, average capacity workload was up by 0.9 points to nearly 65%, the NSI said. Companies are not expecting any spikes of selling prices in the sector. Fifty-seven percent of industrial companies have faced an uphill struggle amidst the unstable economic environment in the past few years. This has been the biggest stumbling block for building companies as well and has plagued also services and retail firms. The business climate index dipped 8.9% in the construction sector compared with September, thanks to more pessimistic outlooks by entrepreneurs. Construction activity is flagging and a further decline is predicted in the next three months. In the services sector, the index dropped by 1.4 points, extending a slowdown that followed a fragile recovery from March to July. Companies cite the shaky economic environment as a tougher challenge than stiff competition and legislative problems. Confidence in the retail sector has waned by a marginal 0.5 points as companies expect no radical changes in the next six months.
Source: Dnevnik (29.10.2009)

Unemployment Rate in Bulgaria Grows The unemployment rate in Bulgaria will continue to increase due to the difficulties in the construction and service sectors provoked by the global financial crisis, an analysis of the Center for Economic Development (CED) reads. The official unemployment rates will reach its peak of 9-9.5% in the winter of 2009-2010. Then, it will keep its levels for a while before starting to go down, CED officials state. The level of unemployment will start sliding down from the middle of 2010 due to the expected economic growth. A slight growth of the GDP is expected in the second and third trimester of 2010, CED claims. Until then, Bulgaria’s economy will continue losing power. A 6% drop of the GDP is expected for the period July - September 2009, which is higher as compared to the first half of the year.
Source: Standart (03.11.2009)

Bulgaria Sept Producer Prices with Highest Rise in EU Bulgaria's producer price index (PPI) marked the highest rise among European Union member states in September on a monthly basis, the statistics agency Eurostat reported Wednesday. PPI in Bulgaria went up by 1,2%, compared with an average of a 0,7% decrease for the whole bloc. Following Bulgaria, among member states for which data are available, the highest increases in the total index on a monthly basis were recorded in Estonia (+0.4%), Cyprus and Slovenia (both +0.3%). The largest decreases were observed in Greece, Finland and the United Kingdom (all -0.8%) and Lithuania (-0.7%). Among member states for which data are available, the largest falls in the total index on an annual basis were observed in the Netherlands (-13.4%), Lithuania (-12.1%) and Denmark (-11.3%), and the lowest in Romania (-0.1%), Hungary (-1.2%) and Slovenia (-1.6%). The only increase was registered in Malta (+0.7%). September producer prices in the 16-nation euro zone were down 7.7% from the same month last year. Compared to August, prices fell 0.4%. Cheaper oil served as the main reason behind the monthly and annual declines as energy costs fell 1.9% against August and 17.6% compared with September 2008. Excluding energy and construction prices, PPI fell at a year-on-year rate of 4.3%, while posting no change from August.
Source: Darik Radio (05.11.2009)

Another 100,000 laid off by end-2009 The number of the registered jobless in Bulgaria already exceeds 300,000, after another 7,000 people were laid off in October, minister of labour and social policy Totyu Mladenov said. When the crisis started to gain speed a year ago, the total number of the unemployed was 216,640. The unemployment rate reached 8.23% in October, rapidly up from 8.03% in September. The statistics, though, does not take into account the people dismissed in the grey sector. The Bulgarian Industrial Association (BIA) counts some 160,000 workers in the unofficial economy. Undeclared unemployment may have reached 13 or 14% already, BIA said. The figure does not include the 170,000 or so discouraged unemployed. The notifications for mass lay-offs submitted in the past three months are yet to be fulfilled. A total of 30 enterprises warned in October that 2,500 workers will be made redundant. Construction companies are expected to dismiss 35,000 people by this year's end. State-owned railway carrier BDZ will lay off about 2,000 people. Staff reduction in Kremikovtzi steelworks will most probably not affect only 3,000 workers but all the 5,000 employed. Machine building enterprises have also said they do not have any reserves left for cost reduction except for discharging qualified staff. The biggest employer, the state, has not yet officially announced its plans for mass lay-offs. The exact number will be clear in December, minister Mladenov told the Pari daily. If the 15-percent downsizing suggested by finance minister Dyankov materialises, some 15,000 public employees will join the army of the jobless. Unemployment will not top 9.5% at the end of the year, Mladenov said. However, trade unions and employers' organisations believe the share will be well above 10%, because between 80,000 and 100,000 workers will be sacked by this year's end. The government projects an 11.4% unemployment rate in 2010.
Source: Pari (09.11.2009)

Unemployment in Bulgaria jumped 6.3% in September 2009 compared with the same month a year ago. The percentage is the biggest in the construction sector, 16.3%, data of the National Statistical Institute show. The number of jobless Bulgarians reached 2.34 million. The end of the tourist season led to a 13-percent drop in employees in the sector. Some 14% of those in the water and sewerage sector also were laid off in July-September. Only in the telecommunications and information distribution sector there were new hires (about 2%). The average monthly wage went up 8% in the public sector and 12.5% in the private sector in the third quarter of 2009, year on year. The average payment per month dropped BGN 5 to BGN 583 compared to the second quarter of 2009. It was the highest in the heating and electricity production and distribution sector (BGN 1,294), followed by that in the financial and insurance sectors (BGN 1,191). The lowest wages were in the HoReCa branch (BGN 382) and administration (BGN 433).
Source: Pari (12.11.2009)

Inflation Rate in Bulgaria Goes below Zero The annual inflation in Bulgaria has fallen below zero. Prices in October 2009 are by 0.3% lower compared with the same month of 2008, the National Statistical Institute (NSI) reported. The increase of prices since the beginning of 2009 is zero. For the last month the NSI registers an inflation of 0.1%, which is mainly due to the prices of shoes and clothes which register a 2.2% increase. A minimum increase of 0.1% is also seen in rents and accommodation maintenance of homes. The decrease of prices of foodstuffs, soft drinks and transport reduces the inflation rates.
Source: Standart (13.11.2009)

Incomes in Bulgaria Freeze Statistical data show that the incomes in Bulgaria have frozen - in September, the monthly income of an average Bulgarian household was 777 levs (1 euro=1.95 levs), just as much as it was a month ago. For comparison, in July 2009 the average income of a Bulgarian household was 795 levs. As a result of the global financial crisis, the incomes of the Bulgarians grew by only four percent over the past year, mainly because of the increase in the retirement payments and not so much of the salaries. The good news is that the crisis has also caused the consumer prices in Bulgaria to freeze. At the end of Q3 2009, the Bulgarians eat less meat, fruit and vegetables and eggs, statistical data show also.
Source: Standart (17.11.2009)

Bulgarian Companies Cut down Investments by 37% According to a survey by the National Statistical Institute carried out among managers of private companies, enterprises in the industrial sector will cut down investments by 37.2%, while the investments in the private sector are expected to shrink by 36%. The companies in the public sector are planning to cut down their investments by as much as 40.9% set against the last year. In all probability, this downward tendency will continue in 2010, as well - the investments in the industrial sector are expected to contract by another 11.2%, while the investments in the private sector will dwindle by 22.7%. The investments in the public sector are expected to grow by 29.2%, but they will not reach the levels of 2008. About 42% of the respondents said they had not planned acquisition of long-term assets in 2010. The production of non-durable goods, food and beverages, as well as the investment goods, are expected to suffer the most serious ebb in investments - by 44.1%, 32% and 29.8% respectively.
Source: Standart (19.11.2009)

The volume of investment in industry will fall 11.2% in 2010. In the private sector the drop will be 22.7%, an investment business survey carried out by the National Statistical Institute (NSI) in late October shows. The investment expenses of companies slumped 37.2% in 2009 compared to a year earlier. The public sector will see a 29.2-percent rise in investments, but they will not reach the 2008 level. Some 42% of the enterprises polled do not plan expenses on long-term assets next year. In industry, the biggest decline is expected in fast-moving consumer goods (44.1%), foods and drinks (32%) and investment goods (29.8%). Investment in the production of durable goods will rise 4.1% in 2010 compared to a 53.5-percent slump this year. The investment activity in all sectors, except for energy and water supply, will decline at least 40%, the survey shows. In energy, the decline is 23.6%. Most funds were invested in production capacity expansion (39.4%). Renovation of old equipment was second with 23.2%, followed by new production technologies with 22.7%. The remaining 14.7% was used for environment, security measures etc.
Source: Pari (19.11.2009)

EU recession over, but sharp contrasts in east The European Union may have inched out of its sharpest recession since the global slump of the 1930s, but green shoots are not emerging uniformly across the 27-nation bloc's eastern member states. Contrasts are sharp among the 10 ex-communist countries that have joined the EU since 2004 and Bulgaria and Romania, that joined EU in 2007. The situation in Poland, the only EU nation to have enjoyed sustained growth this year, compares with the stark lot of countries such as Latvia or Hungary, where the economies have been in freefall. "In terms of growth, eastern Europe will trail behind the rest of the world," said Erik Bergloef, chief economist at the European Bank for Reconstruction and Development, which focuses on the ex-communist bloc. "Over the next few years, this will be the region with the lowest economic growth," he said. Bulgaria posted its worst performance since the crisis began as its economy shrank by 5.8 percent in the third quarter compared with 2008. Analysts said a recovery was unlikely until 2011. "Poland, the Czech Republic and Slovakia, who made fewer mistakes, can look to the future more serenely," said Orlowski. The Baltic trio of Latvia, Lithuania and Estonia had earned reputations as tigers within the EU, topping the growth tables, before their overheated, credit-fuelled economies went off the rails last year.
Source: Trud (23.11.2009)

Global Crisis 'Eats' Incomes of Bulgarians Over 56% of the Bulgarians have been directly affected by the crisis, a fact which is reflected by their decreased incomes and unemployment, shows a poll of the Open Society Institute. "The crisis is like the swine flu - it hits the young people mostly," explained CEO Georgi Stoychev. It's the pensioners that are the least affected, in contrast to people between 30 and 60 years of age, the analysis shows. It turns out that the Bulgarians identify the economic crisis with a political one; with the right-wing GERB coming to power, they are convinced that the Bulgarian economy won't worsen in 2010. Meanwhile, 42% of the Bulgarians are worried that they may lose their job. "By the maintainance of a balanced budget the country will regain its partners' trust," commented expert Georgi Angelov. According to him, the worse period is over and the export will gradually increase as in September it reached two billion euro. The implementation of reforms, aimed at improving the investment climate in Bulgaria, Mr. Angelov added. The Bulgarian business has reached its breaking point and it is hardly likely to endure another six months of stagnation, said Mr. Georgi Prohaski from the Center for Economic Development. To his words, bank crediting has reached its lowest level and there shall be easier access to financial resource from now on, accompanied by a slow decrease of the bank loan interests. Mr. Prohaski went on to say that this year the Bulgarian economy would slump by five percent, whereas next year the economy is expected to grow by 0.5% and by another 4% in 2011. The expected inflation rate for next year is relatively low - about one percent, while the unemployment rate will be about nine percent. Direct foreign investments in Bulgaria are expected to reach about three billion euro next year and about 3.5 billion euro in 2011, Mr. Prohaski said further. Quite surprisingly, Bulgaria will emerge from the global financial crisis without foreign assistance, said Georgi Ganev from the Center for Liberal Strategies. According to Dimitar Chobanov from the Institute for New Economic Progress, Bulgaria’s economic recovery will be a slow process and diversification of production will be necessary.
Source: Standart (24.11.2009)

Some 137,000 Bulgarians Lose Jobs for One Year One hundred and thirty seven thousand people remained without their jobs for one year after the financial crisis hit Bulgaria. "In the third trimester of 2009, the number of the employed Bulgarians above 15 years of age reached 3.28 million people," announced sources from the National Statistical Institute. The working Bulgarians are by 4%, or 137,300 people less than they were in the third trimester of 2008. The number of the officially registered unemployed Bulgarians has increased by 50,000 people and reached 234,500. The number of the desperate Bulgarians, who have stopped searching for a job because they don't believe they will find one, is constantly increasing.
Source: Standart (24.11.2009)

Budget Surplus in Times of Crisis "We may see some budget surplus in November for a second month in a row. If we manage to balance the budget at the end of 2009 fiscal year we will be the most prudent EU member state," Finance Minster Simeon Djankov said. Minister Djankov also said that the economy showed the first signs of recovery - export levels in September increased for the first time in fifteen months.
Source: Standart (24.11.2009)

Bulgaria's unemployment climbs to 6.7% in Q3 Bulgaria's jobless rate rose by 1.5% year-on-year in the third quarter of 2009, hitting 6.7%, according to figures of the National Statistical Institute (NSI). There were more than 234,000 unemployed actively looking for a job, while other 185,000 had already given up because they had lost hope anyone would hire them, the data show. The number of those feeling resigned rose by 41,000 compared with July-September last year. Jobless men made up 55% of the total and women accounted for 45%. About 60% of the unemployed in the third quarter had lost their job over the previous 12 months. The group with the highest unemployment was young people aged 24 and less, with the rate swelling by 5% on the year to 16.5%. Also, the jobless rate in villages was almost twice as high as that in towns. Meanwhile, the number of employed in the third quarter of the year continued its slide. As many as 3.2 million people had a job in the summer, down by nearly 130,000 from a year earlier. The services sector was the biggest employer in the country, whereas the industry shed jobs the fastest. The employment rate was 67.4% for men and 58.9% for women.
Source: Dnevnik (24.11.2009)

Business climate in Bulgaria improves in Nov ‘09 Bulgarian business climate slightly improved by 0.4 points in November, driven by services and industry, according to figures released by the national statistics institute NSI on Friday. However, the decline in the construction sectors carries on. The industry indicator grew by 1 point from its October levels. In the past four months it moved up by 3.7 points from its lowest point, registered after the autumn of 2008, when the downward trend in the sector started. The increase in the last month is due to the managers’ better estimates of the current business situation of companies. At the same time, expectations for the next six months are worse compared with October. Business leaders saw a decrease in output in the past three months, and forecasts for the next three months are also worse than in October. Entrepreneurs also see further reductions in workforce. The order backlog dwindled compared with last month, while stocks registered a slight increase. The situation in the construction sector pursued its downward trend in November, as the indicator for the sector slipped by 2.9 points versus October. Construction activity is still shrinking and order levels are diminishing. Expectations for future activities in the next three months are gloomy, and further job cuts are expected. In the services sector business sentiment rose by 2.6 points on the back of better estimates for the current situation of businesses and optimistic expectations for the next six months. Demand contracted in the sector in the past three months, but forecasts for the next three months are upbeat. There are no expectations for rise in employment in the next three months.
Source: Dnevnik (30.11.2009)

The production of solid fuels in September 2009 compared to August 2009 increases by 29.8% to 2410 thousand tones and transport diesel - by 3.7% to 170 thousand tones, the National Statistical Institute data says. The production of LPG decreases by 43.8% to 9 thousand tones, unleaded motor gasoline - by 8.3% to 122 thousand tones and electricity - by 0.3% to 3211 GWh. There is no change in the production of natural gas. The production of solid fuels in September 2009 compared to September 2008 decreases by 8.3%, LPG - by 35.7%, unleaded motor gasoline - by 6.2%, transport diesel - by 1.7%, electricity - by 3.7% and natural gas - by 100%. The deliveries of solid fuels in September 2009 compared to August 2009 increase by 31.1% to 2672 thousand tones, unleaded motor gasoline - by 150% to 90 thousand tones, transport diesel - by 145.7% to 199 thousand tones and natural gas - by 28.5% to 176 million standard cubic metres. The deliveries of LPG and electricity decrease respectively by 11.1% to 32 thousand tones and 4.7% to 2355 GWh. The deliveries of LPG in September 2009 compared to September 2008 increase by 6.7%, unleaded motor gasoline - by 100% and transport diesel - by 59.2%. The deliveries of solid fuels decrease by 15%, natural gas - by 21.1%, as well as electricity - by 7.2%.
Source: Darik Radio (01.12.2009)

Decline in Bulgarian producer prices speeds up Bulgarian producer prices fell faster in October compared with the previous month, slipping by 9.4% year-on-year, according to data of the National Statistical Institute (NSI). The factory-gate prices of drinks, medicines and clothing were among a handful of categories that registered an annual increase. On a monthly basis, prices dipped 0.9% after a rise of 1.4% in September. "The monthly decrease is very surprising given the growth in the previous months," Georgi Angelov, an economist at think-tank Open Society, has told Dnevnik. "It is hard to tell if the downward trend in prices will continue. It depends on whether the economy will reverse its direction, but there are no such signals for the time being," he added. According to NSI figures, Bulgaria's gross domestic product (GDP) shrank almost 6% in the third quarter, which is the biggest contraction of the economy since the start of the crisis. Producer prices are an important indicator of price stability and are usually passed over to consumer prices with some delay. If the negative trend persists for a long time, that could create a deflationary spiral, where consumption would keep dwindling and would aggravate the problem. All countries in the European Union (EU) have seen a year-on-year decline in factory-gate prices. Yet, preliminary data of the EU's statistics office have shown inflation in the eurozone picked up to 0.6% on an annual basis with consumer prices rising for the first time after five months of deflation. But some economists consider unstable fuel prices the main reason for the registered inflation, playing down the recovery in consumer prices. Most likely, that is the effect of costlier oil, Unicredit analyst Marco Valli has told MarketWatch. At the end of November a barrel of oil cost 40% more than a year earlier.
Source: Dnevnik (01.12.2009)

Trade with Ukraine slumps 70% in 2009 Trade turnover between Bulgaria and Ukraine tumbled drastically from USD 1.5 billion in 2008 to USD 435 million for the first nine months of 2009, Ukrainian ambassador Viktor Kalnik said. For the full year the expectations are for a 70-percent slump. The main reason is the suspended ore supplies to Kremikovtzi's steel plant, which accounted for half of the turnover. Investment also dropped, though capital movement is difficult to follow as most investment companies, both Bulgarian and Ukrainian, register in offshore regions. Kalnik pledged to help companies solve their problems connected with corruption and difficulties at the customs, as well as promote ideas about new partnerships.
Source: Pari (09.12.2009)

Bulgarian Economy Shrunk by 4.7%, Upturn Starts Bulgarian economy has sunk by 4.7% in the first nine months of 2009 but some signs of revival could be noticed already. The GDP for the same period is BGN 48.33 billion or BGN 6,374 per capita, the National Statistical Institute announced. This information proves true the words of vice PM Simeon Djankov who said that instead of the initially expected 6.3% slump for 2009 the Bulgarian economy will sink by 4.9%. The global crisis affected most seriously the investments, which have shrunk by 36.5%. However, there are some positive trends - agriculture has overcome the slump and has registered a 2.3% growth and the downward trend in economy has slowed down. In the last trimester the export has a positive balance of BGN 710.8 million.
Source: Standart (11.12.2009)

Consumer Prices in Bulgaria Go up by 33% for 5 Years According to information from the National Statistical Institute (NSI), consumer prices in Bulgaria increased by 33% over the past five years. However, last year the consumer prices decreased a little. The NSI announced an inflation of 0.1% for November. The inflation over the past 12 months is negative minus 0.1%. While inflation has been going down, interests on bank deposits have been constantly increasing, up to 8.3% for deposits in BGN in November. This makes 2009 a perfect year for saving. The negative inflation is largely due to a decrease in the prices of foods, which fell by more than 4.7% over the past twelve months. The prices of the services telecommunications, clothing items, footwear and accommodation have also decreased a little.
Source: Standart (15.12.2009)

Year-on-year deflation persists in Bulgaria Nov ‘09 Consumer prices in Bulgaria fell by a fragile 0.1% in November 2009 from the same month of 2008, the second successive month of deflation recorded by the National Statistical Institute (NSI), the country’s statistical office, since the crisis erupted. In October, the consumer price index slipped by 0.3% from the corresponding month of last year, the first deflation on an annual basis since 1999. On the month, prices inched up by 0.1%, largely on the back of transport, where costs rose by 1.1%. Food and non-alcoholic beverages was another contributor with a 0.3% increase as well as housing (rents, renovation and utility costs), which added 0.7%. The latest numbers confirmed the forecasts of economists, who said the deflationary processes in the Bulgarian economy will go on for some more time but would not pose significant threat for stability. With price stability a main eurozone entry criteria, economists are mapping out two scenarios of the Bulgarian economy. The first scenario, which is supported by the government and most politicians, sees living standard in Bulgaria and income growth catching up with those in the European Union (EU) only after the country has adopted the single currency but without outpacing the growth of labour productivity.
Source: Dnevnik (15.12.2009)

Bulgarians Increase Saving Twofold in Times of Crisis The Bulgarians have sharply decreased their expenditures and started saving money in times of crisis. In October, the expenses of a household reached 723,52 levs on the average, which is less compared to the same month of 2008 - 727,73 levs. The average expenditures of the households are lower compared to the previous two months of 2009, August and September. This fact is mainly due to the global crisis. The Bulgarians feel uncertain whether they will keep their jobs. Apart from that, in October, the Bulgarians were not sure if they will get any Christmas bonuses. Due to this, they saved every single penny they could. In October, each Bulgarian household managed to save an average of 53 levs while in October, 2008, it is only 23,61. In order to save money, the Bulgarians reduce their expenses on clothes and shoes and they drive their cars less frequently. But at the same time, the Bulgarians do not diminish their expenses on food products. Despite the crisis, they increase the consumption of meat, fruit and vegetables. The average income of a Bulgarian national in October was 321,41 levs which is a growth of 8.52% on an annual basis.
Source: Standart (16.12.2009)

Bulgarians Have the Lowest Purchasing Power in the EU Bulgaria and Romania are the countries with the lowest purchasing capacity in the EU; while Luxembourg, Ireland and the Netherlans are the absolute leaders according to this criterion, shows the last survey of the EC's Eurostat statistical service. The statistical calculations also give comparative data about the countries aspiring for EU membership, as well as about the EU associate member countries. The data show that the citizens of Croatia and Turkey (which are candidate members), as well as these of Montenegro (which has the status of EU associate member state) have higher purchasing power than the Bulgarian citizens. However, with a purchasing capacity estimated 60% below the average for the EU, Bulgaria ranks among the last in this classification of the European countries, for it leaves behind only Serbia, Macedonia, Bosnia and Herzegovina and Albania, where the purchasing power varies between 64% and 74% below the average for the EU.
Source: Standart (17.12.2009)

Unemployment Rate in Bulgaria up by 2 Percent in One Year Some 16,000 Bulgarians lost their jobs before Christmas and the New Year holidays, shows the data of the National Employment Agency (NEA). Over 320,000 Bulgarians were unemployed by end-November which is by 16,000 more compared to October. The unemployment rate hit 8.66%, or by nearly 2% more compared to the same period of 2008. The reason for the big number of downsized Bulgarians is the economic crisis, sources from the NEA informed. The worst affected sectors of Bulgaria’s economy are the manufacturing industry, the trade, construction business and services.
Source: Standart (19.12.2009)

Starting next year companies will not submit annual financial report but annual operations report. This means that company will present the same information to the NRA and the National Statistical Institute (NSI) during submitting the annual tax returns for income tax for 2009. Change is provided in the Law on Corporate Income Tax Act and income tax of individuals, NRA explained. Amendments were made to end the practice of companies providing the same financial information to the NRA and the NSI. Instead, companies would be able to choose where to submit annual reports on their activities.
Source: Novinar (21.12.2009)