Airlines register 5% increase in number of passengers The increase in the number of passengers transported in 2011 will be around 5%, compared to 2010, Svetoslav Stanulov, Chairman of the Bulgarian Airlines Association (BAA) told Klassa. According to data of the National Statistical Institute (NBSI), their number was 6,409,000 in 2010. What is important for the sector is that it posted no losses. The number of passengers increased slightly but at the expense of lower proceeds per passenger. We can say that the year was successful for the Bulgarian airlines, commented Stanulov. The industry’s expectations for 2012 are that there will be no changes in the regular flights and the levels of 2011 will be maintained. Although economists warn of a new recession, BAA does not believe this would lead to a reduction in the number of passengers. BAA does not expect any changes in the charter flights either and hopes their level will remain the same as in 2011. These forecasts are based on the contracts closed by the airlines and tour operators’ estimates about the number of tourists. There are also projections for an increase in the number of transported passengers. We do not expect a decline, added Stanulov. According to him, regular lines fares will remain unchanged this year despite the increase in airport fees. As of the beginning of the year, Sofia Airport will set its fees itself. Until now, these used to be set by Directorate General Civil Aviation Administration with the Ministry of Transport and Communications. The change is necessary due to the implementation of the EU Directive on all airports servicing over 5 million passengers a year. Civil Aviation Administration will arbitrate any dispute regarding the size of the fees if these are contested by the users of the airport. If the fees were properly set until now, there should be no increase, said Stanulov.
Source: Class (03.01.2012)

Some 1,160,988 job vacancies in the EU Job vacancies in the European Union (EU) and European Economic Area (EEA) total 1,160,988, the Employment Agency said for Klassa. Bulgarian citizens can look for jobs on the European Employment Services – EURES portal, explained the agency. Currently, some 17 EU member-states have already lifted the restrictive measures for Bulgarian and Romanian nationals to their labour markets. Ten EU member-states (Austria, Belgium, Germany, Italy, Ireland, Luxembourg, Malta, the Netherlands, the UK and France) delayed the opening of their labour markets to Bulgarian and Romanian employees during the second 3-year stage of the transition period, which expired at the end of 2011, the Ministry of Labour and Social Policy said for Klassa. “Ever Bulgarian can apply for a job there if he or she knows the respective language and could be hired if is good for the job,” Svetlozar Petrov, Manager of the specialised site JobTiger.bg, commented for Klassa. Currently, there are job vacancies for McDonalds in Germany (100 jobs), the interviews for which will be held in February in Sofia, Varna and Montana. A campaign has been launched for recruiting strawberry pickers in Spain (around 1,000 jobs). Doctors for Denmark and locksmiths for the Czech Republic are also in demand, but the vacancies are quite limited.
Source: Class (05.01.2012)

Eurostat reports a decline in the unemployment rate in Bulgaria The unemployment rate in Bulgaria is on the decline. This seemingly surprising news was disclosed in Eurostat statistics. According to data published on Friday, in November 2011, the unemployment rate dropped by more than half a percentage on an annual basis. In November 2010, it was 11.5%, while during the same month last year, it stood at 10.9%. Throughout the period, the rate decreased at almost the same speed. “By the end of November, however, the statistics looked a little bit different,” noted Georgi Ganev, economist at the Centre for Liberal Strategies. He noted, on the Internet page of the institution, that the figures published on November 30, 2011, had shown a continuous increase in the unemployment rate in Bulgaria, which, in October 2011, was above 12%, reaching 12.1%. "The table, attached to the Eurostat press release, showed a constant increase in the rate of unemployment”. In November 2011, a total of 23.67 million people in Europe were unemployed - 55 thousand more than in October. Compared to a year earlier, there were 723 thousand more unemployed people. The lowest percentage of unemployment was recorded in Austria – 4%, Luxembourg and the Netherlands (both 4.9%) and the highest levels were reached in Spain - 22.9% and Greece - 18.8% (in September). Compared to 2010, the unemployment rate decreased in 14 EU member states and it increased in 13 ones. In the third quarter of 2011, the greatest decline was recorded in Estonia from 16.1% to 11.3%, on an annual basis. The situation on the labour market has improved substantially in Latvia and Lithuania. The most serious deterioration in the employment data was reported in Greece. The unemployment rate has jumped from 13.3% to 18.8% in a year. Bulgaria ranks close to the average figures for EU member-states in terms of unemployment, along with Poland, France and Hungary. Romania, however, is ahead of Bulgaria with an unemployment rate of 7.3%.
Source: Class (09.01.2012)

The average price of sold and acquired businesses is ˆ500,000 The acquisition price of businesses sometimes can reach millions or even billions worldwide, while investors in the country buy and sell companies and ideas for ˆ500,000 on average. “It is just this kind of business ventures that are being implemented most quickly at a time of crisis and everything above this price is hard to sell in Bulgaria,” said for Klassa daily Nikola Stoyanov, Managing Director of the BusinessForsale.bg consulting company dealing with business mergers and acquisitions. According to him, last year was very sluggish in terms of buyers of businesses and quite active in terms of people who wanted to sell. “The negative effects of the crisis seem to deepen and many companies in Bulgaria have failed to adapt, so their owners prefer to market them,” he stated. The problem is that, generally, there are no buyers and only the smallest businesses, such as retail sites, can be sold and bought successfully. “Last year, the BusinessForsale.bg company made a total of 20 transactions - much less than in previous years,” commented Stoyanov. Furthermore, despite the fact that we thought that the crisis had hit rock bottom in 2010, prices continued to fall further in 2011. “The market remains weak despite the more attractive offers and many businesses are being sold at a loss,” stated the expert. According to him, at least another year must pass in order for the market to recover." Stoyanov believes that buyers and sellers are distressed by the news released and by the economic insecurity in the European Union, and are unwilling to invest. “Currently, they are waiting which presses the market further. There is no fresh money, investors have reserves but they do not want to act now.” But not all experts are pessimistic. Borislav Ivanov, Director of the Official Representation of Deutsche Bank in Sofia, reported a strong revival in the mergers and acquisitions sector over the last 6 months in an interview for Klassa daily. “A business consolidation is under way due to problems, and the larger and more successful businesses are buying smaller ones,” said Ivanov.
Source: Class (09.01.2012)

Bulgaria 3rd in EU Retail Drop for 2011 Bulgaria is in the top tier of EU member states with the most dropped down volume of retail trade for last year, according to a recently released Eurostat study. Retail in Bulgaria for 2011 has dropped by 5.3%, as compared with the previous year. Bulgaria is precede by Portugal, where retail dropped by 9.2%, and Spain, where there was a decrease by 7%. As a whole, retail in the EU has dropped with 1.3%, and that in the eurozone - with 2.5% on a yearly basis. On a monthly basis, comparing November and October 2011, the largest drops have been in Portugal, Malta and Romania, while the highest increases were noted in Lithuania, Ireland and Latvia.
Source: econ.bg (09.01.2012)

Export growth eases down to 20%, trade declines Bulgaria’s export growth has eased down to around 20%. In November, its pace was 19.1% on a monthly basis, the National Statistical Institute (NSI) reported today. A month earlier, exports registered a 23.6% increase, up from 19.4% in September, 20.9% in August and 20.7% in July. NSI’s data clearly showed a downward trend in export growth. In the first six months of 2011, it was growing by 40% while in January-November its growth was 30.6%. For the first 11 months of 2011, Bulgaria’s exports in absolute terms stood at BGN 36.2 bn, and at BGN 3.4 bn in November. Imports for the first 11 months of last year amounted to BGN 41 bn or 20.6% up from the same period of 2010. Thus, our country’s foreign trade balance registered a deficit of BGN 4.822 bn for the period, BGN 1.47 bn less than in January-November 2010. After deducting transport and insurance costs on imports, the deficit in the foreign trade balance will be more than BGN 2.81 bn. NSI reported a 5.3% decline in retail trade in November on an annual basis, excluding the sales of automobiles and motorcycles. The decrease was 0.6%, compared to October. The turnover in almost all sectors fell, an increase of 8.3% from November 2010 being registered by pharmaceutical and medical goods. Statistics about industry are not optimistic either. Industrial production decreased by 0.4% in November, compared to the previous month and year-on-year growth dropped to a mere 0.6%.
Source: Class (10.01.2012)

Bulgarians Continue to Tighten Belts The Bulgarians have further tightened the belts and additionally reduced expenditures. In November 2011, the sales in retail trade dropped by 5.3% compared to the same period of 2010, the National Statistical Institute reported. The sales went down in size by 0.6% compared to the preceding month - October 2011. The most serious reduction has been registered in the trade with home appliances, furniture and other commodities for the home - - by 14,2%. The sales of PC and communication goods have shrunk by 13,4% for a year. The drop in the retail trade with clothes and shoes is down by 11,2%, the sale of foods, drinks and cigarettes by 2,6%. The serious shrinking of the expenditures of Bulgarians seem to have a bad effect on their health as the sales of medicines have increased. The sales of pharmaceutical and medical staffs register a growth of 8.3%.
Source: Standart (10.01.2012)

According to the preliminary data of the NSI, in November 2011, the index of production in the Construction sector, calculated on the base of seasonally adjusted data, was 0.4% below the level of the previous month. In November 2011, the work day adjusted dat4 showed a decrease by 10.3% in the construction production, comparing to the same month of 2010. In November 2011, the construction production was below the level of the previous month. The Index of Production of building construction, calculated from the seasonally adjusted data, showed a decrease by 0.7%, while the production of civil engineering rose by 0.3%. On an annual basis, in November 2011, the decrease of production in construction, calculated from working day adjusted data was determined mainly from the drop by 16.3% in the civil engineering, while the building construction decreased by 5.2 %.
Source: Darik Radio (10.01.2012)

Export for South Africa Grows by 909% Bulgaria’s export to the Republic of South Africa increased by 909% from January to November 2011 and reached 129 million levs, according to information from the National Statistical Institute. As long as changes in the rates of import are concerned, import from Kazakhstan rose most sharply - by 1034% reaching 127 million levs for the same period. In the first eleven months of 2011 Bulgaria’s foreign trade deficit was 2.82 million levs decreasing by 40% on an y/y basis. From January till November 2011 the export totaled to 36.2 billion levs, having increased by 30.6% on an y/y basis. For the same period the export amounted to total 39 billion levs having increasing by 20.4%. In November export amounted to 3.39 billion levs which was by 19% more than for the same month the previous year, according to sources from the National Statistical Institute. Meanwhile the import grew by only 6% amounting to 3.95 billion levs. For a fifth month in a row the export growth average rates have been about 20% y/y and the import marked its first one-digit growth. The stable export growth is telling of very good management of enterprises in times of crisis. The commercial balance in November was 553 million levs, decreasing by 38% on an y/y basis.
Source: Standart (10.01.2012)

Free of charge personal identification code replaces the electronic signature Free of charge personal identification code (PIC) will replace the paid electronic signature, announced yesterday the National Revenue Agency. The service will be launched as of today and will enable both physical persons and legal entities to follow their tax and social-security records. If the physical persons detect that their employer fails to transfer the amounts due, they can approach the NRA bodies. Should the PIC code be lost, NRA must be immediately notified about that in order to delete it and issue a new one. "The PIC code will allow us to check our personal data online. This year, we will launch three new services accessible with a personal code, providing information on the kind of the labour contract declared by the respective employer as well as on the actual working hours. The new configuration will allow us to check our income and the amounts paid for supplementary pension insurance," specified the NRA Spokesman, Rossen Bachvarov. Calculations show that Bulgarian citizens and companies would thus save some BGN 10 mln instead of paying fees on the electronic signature, indicated Boryana Georgieva, Director of Client Services Department with the NRA. The deadlines for paying taxes will not change, but since April 30 was set as the last deadline day for physical persons, the income tax returns will be accepted on May 2 as well. Payments would be made easier as well with the possibility for rounding the amount of the tax to be paid. If we delay our transfer by one day, we will not owe an interest for the day overdue. Thus, companies will save about another BGN 9 mln from tax relief for submission of the annual activity reports only to the NRA or to the NSI (National Statistical Institute) merely, announced the statistical institute. The common electronic entry point for reports will reduce the red tape impediments to businesses. Some 85% of companies have already filed online their income-tax forms along with the other active entities such as corporations operating across Bulgarian country. Until yesterday, a total of 3,500 activity reports were submitted, afigure is three times higher compared to the one for the same period last year, emphasised Diana Yancheva, NSI Head of the Business Statistics Directorate.
Source: Class (11.01.2012)

Misappropriation of money established in every third public procurement order implemented by municipalities Representatives of the Public Financial Inspection Agency (PFIA) discovered the misappropriation of BGN 19 mln during the implementation of procedures under the Public Procurement Act. A total of 103 inspections in 44 municipalities were carried out by PFIA during Q4 2011. The public procurement orders were worth a total of BGN 65 mln. This means that there has been a violation in every third case. For Q3 2011, misuse in municipalities amounted to BGN 11 mln, including procedures held in violation of the law. The Municipality of Mezdra was the ‘leader’ in that respect, where misuse exceeding BGN 3.72 mln was established under public procurement orders. During the inspections of PFIA held at the end of 2011, the ‘leaders’ in terms of violations were the municipalities of Ruse, Pernik, Tsarevo, Kozloduy, Teteven, Nikopol, Cherven Bryag, Pavel Banya, Pomorie, Malko Tarnovo, Gramada (Vidin region), Vetovo, Krushari, Isperih and Hadjidimovo. The largest amounts misused were established in the municipalities of Tsarevo (BGN 4.78 mln), Pomorie (BGN 2.35 mln), Isperih (BGN 1.18 mln), Nikopol (BGN 1.15 mln) and Cherven Bryag (BGN 1.48 mln). In addition to the violations in holding procedures under the Public Procurement Act, the inspections also disclosed numerous accounting and administrative violations. The most common errors in municipalities are connected with the collection of the necessary complete public procurement offers and non-observation of the methodology for conducting the procedure. In state-owned enterprises, irregularities were found in the distribution of funds and accounting procedures. In addition to municipalities, PFIA also inspected state-owned enterprises, companies within the structure of the Bulgarian State Railways, the Agriculture State Fund, the Ministry of Regional Development and Public Works, municipal associations, municipal governments, social institutions and universities.
Source: Class (12.01.2012)

Inflation in Bulgaria Drops to 2.8% The inflation in Bulgaria for the whole 2011 is 2.8%, the National Statistical Institute (NSI) reported. Only in December 2011 the prices in Bulgaria went up by a minimal 0.1%. The yearly inflation at the end of December has dropped to its lowest level from August 2010 on. Due to the global crisis and the reduced consumption, producers and tradesmen cannot increase prices, otherwise they will lose clients. The low inflation rates make bank savings more and more profitable. The annual interest rate on deposits in the banks in Bulgaria ranged between 6-6.6%. This means that the Bulgarians with bank deposits in Bulgarian currency profited 3.30 levs for each deposited 100 levs.
Source: Dnevnik (16.01.2012)

The net effect of Bulgaria's membership in the EU recorded an annual growth of 24% and amounted to ˆ 1.22 bn, according to data of the Bulgarian National Bank for November 2011. The net effect is calculated as a difference between the amounts received from the EU funds and the payments due from our membership together with the contributions to various funds and programs, including the current capital transfers of the State. In the period December 2010 - November 2011, the country received a total of ˆ743.6 mln from Bulgarians permanently living and working abroad, which means an increase of 8.4% on an annual base, showed the BNB data. These transfers account for about 5% of the country’s GDP. As a result, the net effect of our EU membership, together with the transfers from Bulgarians working abroad was ˆ1.99 bn for a year. As noted in the report of Eurostat on emigrants’ cash flows in the EU, the deficit in the country's current account in 2010 would have been nearly 160% higher without the remittances of the Bulgarians working abroad. Tomislav Donchev, Minister for EU Funds Management, said recently that in 2012 Bulgaria expected to receive from the Cohesion and Structural Funds a total of ˆ4.5 bn, which was 5.6% of the expected GDP of the country.
Source: Class (18.01.2012)

Eurostat: Construction industry in Bulgaria and Portugal with the largest decline The construction industry in Bulgaria and Portugal registered the largest decline in Europe, according to the latest data of Eurostat. In November 2011, the decrease in the sector was 0.7% in Spain and Slovakia, and 0.3% in Bulgaria, compared to the previous month. The greatest drop on an annual basis was in Portugal – 12.2% and Bulgaria - 10.3%. The construction industry in Slovenia and Hungary reported the highest monthly increase in November 2011 of 23% and 7.4%, respectively. According to Eurostat, construction output rose in six and fell in eight EU countries on an annual basis. The highest growth was registered in Romania – 16.9%, Poland (14.7%) and Germany (9.9%). According to preliminary data of the National Statistical Institute, in November 2011, the sector reported a decrease of 0.4%, compared to the previous month.
Source: Class (20.01.2012)

Businesses will be looking for financiers and IT specialists After 2011 when a real growth in the number of jobs vacancies was registered the first time following the crisis, in 2012, the trend would be maintained as well Businesses will looking to hire mostly financiers and IT specialists. This opinion was shared by the leading websites for recruiting personnel and HR companies. According to Nadya Vassileva, Director General of Manpower, the specialists in demand are mostly financiers, analysts and accountants, due to the uncertainty of the economy. An apparent paradox, however, is that the sectors with the highest number of ads for job vacancies face difficulties in finding highly qualified employees. Deyan Sultov, Managing Partner at Buljobs.bg said that highly qualified specialists are traditionally sought for the IT and Telecommunications sector and it is difficult to fill the vacancies in it because employers usually look for a number of professional skills. There are positions which generate more than 1000 applications, while others - ie. those in the IT sector can hardly be filled according to the jobs.bg site. “It is difficult for employers to find highly qualified technicians, engineers, managers and IT professionals for their job vacancies, while job seekers are most numerous in the sectors Transport and Logistics, Manufacturing, Construction and Architecture, Trade and Sales and Restaurants and Food and Drinks,” said Deyan Sultov from Buljobs.bg. Outsourcing will continue to develop in Bulgaria in 2012 and will develop in new directions, according to Jobs.bg. “Within months, a foreign company will step on the domestic market and will hire some 200-300 employees in 2012 alone in the field of accounting, finance, document management,” said Anna Dimitrova, Corporate Communications Director, of an Internet platform.
Source: Class (21.01.2012)

Bulgaria Sees EU's 2nd Largest Hotel Nights Increase 2011 Bulgaria registered an 18.3% increase in the number of nights spent in its hotels in 2011, the second largest increase among EU member states, according to Eurostat's latest data. The Balkan country also saw the largest increase in the number of nights spent in its hotels by non-residents (+19.5%). The largest increase in the total number of nights spent in hotels was recorded in Lithuania (+19.8%), while Estonia and Latvia observed growths of 14.6% and 14.1% respectively. The smallest increases were registered in the United Kingdom (+0.5%), Austria (+0.6%) and Malta (+0.7%). Among the Member States for which data are available, the highest numbers of nights spent in hotels in 2011 were recorded in Spain (288 million nights, +7.8% compared with 2010), Italy (249 mn, -1.2%), Germany (241 mn, +5.4%), France (202 mn, +3.0%) and the United Kingdom (166 mn, +0.5%). These five Member States accounted for 70% of the total number of hotel nights spent in the EU27.
Source: Darik Radio (25.01.2012)

Bulgaria ranks between Croatia and Romania in terms of quality of life Bulgaria and Romania hardly approach the other EU countries in their development. The remain closer to the other Balkan countries in terms of economic state, quality of life, level of democracy and state governance, shows the Catch-up Index, developed by experts of the Open Society Institute. The index compares Bulgaria with the other EU member-states and the candidates for EU membership: Croatia, Iceland, Serbia, Montenegro, Albania, Turkey, Macedonia, Bosnia and Herzegovina. “Our country occupies the 28th position after Croatia, but is before Romania in terms of the four main criteria – state of the economy, quality of life, democracy and governance,” said Asya Kavrakova, an expert at the Open Society Institute when presenting an analysis on Bulgaria’s EU membership and the competitiveness of our country’s economy. A total of 47 criteria have been used for the evaluation and comparison of 35 European countries, which have been divided in six groups according to similarity of development. Bulgaria belongs to the fifth group together with Croatia, Latvia, Romania and Montenegro, which are followed by the candidates for EU accession: Serbia, Macedonia, Turkey, Albania, Bosnia and Herzegovina. Although the index of the Bulgarian economic development is high, the quality of life in our country is lower even than the living standards in Serbia and Montenegro. Comparing the Catch-up Index of the new EU members with regard to the old EU member-states, the experts found that the Czech Republic, Estonia and Slovenia are the countries closest to the first 24 EU members.
Source: Class (31.01.2012)

Bulgaria's Dec Producer Prices Edge down 0.6% M/M, Up 4.0% Y/Y The index of producer prices in industry is at par with the previous month on the domestic market in December 2011, shows a study of the National Statistics Institute (NSI). The price increase was registered in the mining industry. It is symbolic of 1.1 per cent and the reduction in manufacturing - by 0.1%. The production and distribution of electricity and heat and gas will not change. In the manufacturing price reduction compared to November is in production of paper and paperboard and articles of paper and paperboard and production of computer, electronic and optical products - by 0.3 percent. The index of producer prices on domestic market in December 2011 increased by 4.1% compared to same month of 2010. Price increases in manufacturing is by 5.4 per cent and in the production and distribution of electricity and heat gas by 2.7 per cent, while in the mining industry the drop is 3.1%.
Source: Monitor (31.01.2012)

Bulgaria's December Unemployment Rate Reaches 11% Bulgaria's unemployment rate in December 2011 was 11.2%, according to Eurostat's latest data. According to the Bulgarian Employment Agency (which measures unemployment rates by calculating the number of people registered with Labor Bureaus), the December unemployment rate in the country was 10.4%. The seasonally adjusted unemployment rate for the bloc was 9.9% in December, while 10.4% were observed in the Eurozone, Eurostat has revealed. Among the member states, the lowest unemployment rates were recorded in Austria (4.1%), the Netherlands (4.9%) and Luxembourg (5.2%), and the highest in Spain (22.9%), Greece (19.2% in October 2011) and Lithuania (15.3% in the third quarter of 2011).
Source: Dnevnik (01.02.2012)

Bulgaria 2011 Avg Jobless Rate Rises to 10.1% The average jobless rate in Bulgaria last year stood at 10.1%, up from the average of 9.47% registered a year earlier and below the government’s target of 10.5%, official data showed on Thursday. The average number of unemployed totalled 332,601 in 2011, 18,344 less than a year earlier, the government's Employment Agency said in a statement. Bulgaria's end-2011 jobless rate rose to 10.4% from 10.0% at the end of November and 9.24% at the end of 2010.
Source: econ.bg (03.02.2012)

Bulgaria ranks second in the EU in terms of lowest state debt Bulgaria ranked among the best performers in the EU in terms of lowest state debt. According to the official data of the European Statistical Office EUROSTAT, for the third quarter of the year, Bulgaria's debt reached 15% of GDP, or BGN 11.37 bn, which ranks us second among EU member-states. Only Estonia is ahead of Bulgaria - it has a 6.3% debt, or a mere ˆ953 mln. Let us remind our readers that last year's budget projected for the maximum amount of public debt not to exceed BGN 14.3 bn or 18.6 % of GDP. This year, the GERB (Citizens for European Development of Bulgaria) government forecast that state liabilities should not exceed 19% of GDP. Even if we maintaining a large debt, our country will remain among the least indebted EU member-states. EUROSTAT experts reported that the top three performers include Luxembourg, whose debt is 18.5%. Furthermore, Bulgaria ranked among the seven EU member-states which reported a decline in their public debt, while the remaining 20 registered an increase. Bulgaria ranked third in terms of the debt decrease and our debt was reduced by 0.9%. Only Luxembourg and Sweden managed to reduce their public debt by over 1%. Greece, Portugal and Ireland recorded the largest increase in their state debt at the end of the third quarter of 2011, compared to the same period a year earlier, according to EUROSTAT data. From early 2011 until the end of September, the state debt of Greece - the most indebted EU country - reached ˆ347 bn, or 159.1% of GDP. Despite the imposition of large-scale austerity measures, the Greek economy is obviously failing to tackle the debt crisis. Italy, in turn, ranked second in the EU with a debt of 119.6%, or ˆ1.884 trln. Portugal's public debt stood at 106.5% of GDP, while that of Ireland amounted to 104.9% of GDP. These three countries are being pointed out by analysts as the next victims of the debt crisis and their bankruptcy should not be ruled out. Belgium, France, the UK, Hungary, Germany and Austria are also among the top ten performers.
Source: Class (07.02.2012)

Collective shopping sites offer deals on credit We can now buy goods and services on credit through the websites for collective shopping. Today, Kolektiva.bg launched this service in partnership with TBI Credit. All deals worth BGN 150 and more offered on the site will now include the option to apply for credit online as part of the purchasing process. Thus, with just one click customers will be able to apply for TBI credit and get a reply within an hour. The loan contract will be delivered to the address as soon as possible and the voucher will be validated. Kolektiva.bg is the first site for collective shopping in Bulgaria offering this additional service. “I am glad we can offer this new service to our clients. The option to get credit will not only facilitate online shopping but will also enable more people to take advantage of the good bargains offered. I am grateful to our partners - TBI Credit – who helped us put this idea in practice and promote the development of online trading in Bulgaria,” said Paris Childress, Manager of Kolektiva.bg. Despite the fact that the service is being launched for the first time on a site for collective shopping, it is already available in some online stores. For example, since October 2011, we have had the opportunity to shop on credit from the online store of Multirama in partnership with JetCredit. The online store of Technomarket also offers options for shopping on credit. Several more options are offered as well – through CrediBul, which is part of the international consumer financing division of Societe Generale Group; JetCredit; UniCredit Consumer Financing and TBI Credit. Easy Asset Management (Easy Credit) offers loans for shopping in large supermarkets and hypermarkets. The loans are for amounts of BGN 100 and BGN 200, and are extended within 20 minutes with minimum requirements.
Source: Class (07.02.2012)

The industry sector ends 2011 with a decline After registering annual growth throughout 2011, the industry sector reported the first decline in December. According to National Statistical Institute (NSI) data, during the last month of the year, industrial output dropped by 0.6%, compared to a year earlier. The deterioration of the indicator, according to experts, is mainly due to the 20.4% decline in the extracting industry, and the 3% decrease in the processing industry. On an annual basis, a drop was also registered in the production of investment goods (9.9%), while growth was reported in the output of energy products (1.9%) and intermediate goods (1.2%). The price index in industry fell by 1.3%, compared to November. The processing industry decreased by 13.8% in December, compared to the previous month, while the output of the extracting industry rose by 17.3%. A considerable decline in the processing industry was reported by the pulp and paper sub-branch (31.6%) and the sector of metal products and basic metals. The most significant annual decline was registered in the construction sector, which ended 2011 with an annual drop of 11.1% and a decrease of 1.1%, compared to November. The year-on-year decline in the construction output was mainly due to the decrease in civil engineering where the decline was 16.6%, while the decline in the construction of buildings was 8.8%. Retail trade also remained below the level of December 2010. At the end of last year, the sector registered a 2.4% year-on-year decrease. However, retail trade is the only sector reporting a slight increase of 0.3%, compared to November. A year-on-year increase in the turnover was registered in December 2011 in the retail trade in pharmaceutical and medical goods - by 10.1% and the sales of foods, beverages and tobacco - by 0.6%.
Source: Class (08.02.2012)

New Wave of Job Cuts in Bulgaria The companies will continue to dismiss employees in 2012, stated the deputy chair of the Bulgarian Industrial Association Kamen Kolev. In his opinion, the job cuts will be most severely felt in the sectors of commerce, construction and services. the reasons for the bad expectations are the increase of prices of raw materials as well as the shrinking of consumption. The Bulgarian National Statistical Institute reported yesterday that the retail trade in December 2011 shrank by 2.4% compared to the same period of 2010. According to Mr Kolev only the export companies could rely on good long-term results.
Source: Standart (08.02.2012)

Industry and Construction sector shrink further Bulgaria's industry shrank by 1.3 per cent in December 2011 compared with November 2011, according to early, seasonally adjusted data released by the National Statistical Institute on Tuesday. The processing industry declined by 13.8 per cent, and electricity, heat and gas production and distribution declined by 6.0 per cent, while the extracting industry grew by 17.3 per cent. Within the processing industry, a more significant decline was recorded in the production of paper, cardboard and products thereof, by 31.6 per cent, and metal products (exclusive of machinery and equipment), by 22.7 per cent. Bulgaria's construction sector shrank by a further 1.1 per cent in December 2011 compared with November 2011, according to early, seasonally adjusted data released by the National Statistical Institute on Tuesday. The decline in building construction was 1.8 per cent, and in civil engineering construction 0.2 per cent. In December 2011 compared with December 2010, the sector shrank by 11.1 per cent, according to calendar-adjusted data. The decline in building construction was 8.8 per cent, and in civil engineering construction 16.6 per cent.
Source: 3e-news (08.02.2012)

In the period January - November 2011 the Bulgarian exports to the EU increased by 33.3 per cent compared to the corresponding period of the previous year and amounted to 22,600 million leva, the National Statistical Institute said Wednesday in a report based on preliminary data. The main trade partners of Bulgaria were Germany, Romania, Italy, Greece and Belgium, that formed 66.8 per cent of the total exports to the EU Member states. The most significant growths were observed in the exports to Malta, Denmark and Portugal. Falls were registered in the exports to Slovenia and Luxembourg. In November 2011 the exports to the EU increased by 29.1 per cent compared to the corresponding month of the previous year and exceeded 2,200 million leva. Bulgarian imports from the EU in the period January - November 2011 increased by 20.7 per cent compared to the corresponding period of the previous year and amounted to 24,100 million leva at CIF prices. The most significant growths were reported in the imports from Cyprus and Spain. Decreases were observed in the imports from Malta, Finland, Portugal and Denmark. In November 2011 the Bulgarian imports from the EU Member States increased by 13.9 per cent compared to the corresponding month of the previous year and exceeded 2,6 million leva at CIF prices. The foreign trade balance of Bulgaria (export FOB - import CIF) with EU in the period January - November 2011 was negative and amounted to 1,440.1 million leva. At FOB/FOB prices (after elimination of transport and insurance costs on imports) the trade balance was also negative and reached 329.2 million leva.
Source: Capital (09.02.2012)

Bulgaria's exports increase by 30% in 2011 In 2011, Bulgaria's exports to the European Union and other countries reached BGN 39.3 bn, announced the National Statistical Institute (NSI). Exports increased by 29.2% on an annual basis, maintaining a constant growth rate. In 2010, exports grew by 33%, compared to 2009. In 2011, exported goods and services to non- EU countries amounted to over BGN 14.8 bn, recording an increase of 24.4%. Imports, on the other hand, increased by 19.2% and amounted to BGN 18.6 bn. Last year, Bulgaria’s imports stood at BGN 45.1 bn or 20% more than the respective figure in 2010. The overall trade balance was negative and amounted to BGN 5.81 bn, or BGN 1.39 bn less than the reported amount for 2010. Bulgaria’s trade balance deficit with EU countries exceeded BGN 2 bn and it amounted to over BGN 3.8 bn with third countries. Last year, most of the production was exported to Turkey, Russia, Serbia, the Republic of Macedonia, China, the Ukraine and the USA. Exports to South Africa, Canada, Egypt, Georgia and China increased substantially, compared to 2010. The largest decline was recorded in exports to Singapore, Syria, Peru and Vietnam. The largest imports came from Russia (over BGN 8 bn), Turkey (nearly BGN 2.2 bn), the Ukraine (more than BGN 1.8 bn) and China (BGN 1.3 bn). These four countries alone accounted for more than two-thirds of Bulgaria’s imports. In December 2011, total exports to the EU and third countries reached BGN 3.1 bn, recording an increase of 13.5% over the same period last year. Total imports increased by 7.9%, on an annual basis to BGN 3.9 bn. In the last month of 2011, the total foreign trade balance was negative - down by BGN 822 mln.
Source: Class (10.02.2012)

Association of Collection Agencies: Bulgaria’s middle class is rapidly falling into debt “Bulgaria’s middle class is becoming more and more indebted, and faces difficulties even concerning the payment of monthly utility bills,” showed the analysis of the Association of Collection Agencies in Bulgaria (ACAB) at the end of January. Contrary to the popular belief that poorer people pay their bill with more difficulty, it appears that, more often, the debtor is between 40 and 50 years of age, a resident of a city - Sofia, Varna and Burgas. "Bulgarians with an average income did not take into consideration the reduction in their revenue on time, and continue to maintain their standard of living of the good economic years, living in practice on the edge of their abilities. For them, even a minimum change in the planned payments means falling into debt," said Raina Mitkova-Todorova, Chairperson of ACAB. “And if the loss of the family car is a matter of prestige, the non-payment on credit cards or other products on lease remains hidden, which automatically leads to lower collection of these debts,” added the expert. It also appears that whereas the payments for using the services of district heating companies can be deferred, people who use electricity for heating have no choice. When money is insufficient, it is the liabilities on credit cards and leases that go unpaid most often . At the same time, after three years of crisis, people with a minimum income have learned how to budget, and have permanently ceased to consume goods and services that they cannot afford. According to the analysis of ACAB, the high bills for electricity and medical services were pointed out by households as the main reason for the delay in payments on loans or leases. On the other hand, every second household has delayed its payments due to the indirect effect of greater inter-company indebtedness, which has led to the deferred payment of salaries. According to the association, in a mere 12% of the cases unemployment was the reason for non-payment. In most of the cases, non-payment was due to bad budgeting and unaffordable costs.
Source: Class (13.02.2012)

Bulgarians Third about Economic Optimism Bulgarians are on third position regarding economic optimism according to a survey made by Gfk in twelve European countries inhabited by 80% of EU population. The index of expectancies in Bulgaria is -25.5 points as the average for all 12 countries is -44. Germans are the most optimistic (-0.9 points) and the Spaniards (-4 points). Greece and the Czech Republic are at the bottom of economic optimism scale with -58.6 and -63 points respectively. In the category assessing expectations for earnings in 2012 Bulgarians are fifth (-27 points) as Germany traditionally leads with its smashing index of +34 points. The citizens of Greece (-65 points), Italy (-61 points), Portugal (-60 points) and France (-60 points) are quite pessimistic about their income. With regard to "purchase intention" Bulgarians are on third position with -6 points at the average of -29 points for the European Union. Germany (+27 points) has lost its first position for the first time since 2008. The leader in this category is Austria with +36 points and at the bottom are Portugal (-44 points) and Great Britain (-54 points).
Source: Standart (14.02.2012)

Bulgaria Excels EU in Business Climate Bulgaria takes the lead in Europe as regards the condition of the business climate for 2012, shows a survey of Eurochambers - the European Association of the Commerce and Industry Chambers of the EU member states. Bulgaria is followed by Sweden, Romania, Belgium, Malta, Great Britain. The states with worst conditions for making business are Greece, Denmark, Austria, Spain and Portugal.
Source: Standart (15.02.2012)

Managers of big companies optimistic about 2012 Against the background of an increasingly gloomy picture resulting from financial, economic and political analyses, more than half (66%) of the managers of big international and Bulgarian companies are surprisingly optimistic about 2012. The prevailing opinion is that the energy sector will have the greatest chance for intensive development this year. The data from the survey conducted by the consulting company Stanton Chase Bulgaria also showed that the top managers in Bulgaria look upon slower economic growth as an opportunity to restructure their teams, focusing on identifying and retaining talented staff. Just like 2011, maintaining a stable cash flow continues to be a priority for businesses. Many top managers are interested in new career opportunities and positions in other countries. Unlike last year, they see such opportunities mainly in the sectors they currently operate in. Stanton Chase has surveyed 140 top managers, including company presidents, CEOs, managers for Bulgaria, etc.
Source: Class (15.02.2012)

With a modest GDP growth of 1.6%, the Bulgarian economy fails to meet the 2011 forecasts The Bulgarian economy failed to meet the Government’s forecasts, recording a growth of 1.6% of GDP for 2011, showed the preliminary estimates of the National Statistical Institute (NSI). The figures are dramatically lower at the background of the initially budgeted 3.6% GDP growth for 2011 and the revised estimates of 2.8% GDP growth at the end of the year. NSI reported lower values even compared to those from the forecasts of economists and experts. The European Commission lowered its forecast to 2.2% GDP growth for 2011. In December, the IMF stated that it expected 1.9% increase in the country’s GDP, similar to the estimate of the World Bank. According to NSI data, in 2011 Bulgaria produced goods and services for a total of BGN 76.17 bn, while for the fourth quarter of 2011 alone the produced GDP stood at BGN 20.45 bn. Our economy recorded a 1.5% growth in the last quarter of the year, given that it was 3.3% in the first one, 2% in the second and 1.6% in the third quarter, on an annual basis. Exports, increased by 10% and again contributed most substantially to the positive economic result. Final consumption recorded an increase of 1.4%, while imports were up by 3.4%. The final data is expected to be released in early March, specified experts from the NSI. Despite the modest growth figure of 1.5%, at the end of the year Bulgaria was among the first seven countries with the highest GDP growth in 2011, showed preliminary data of Eurostat. According to the European statistics office, besides the rapidly expanding Baltic countries, only Romania, Germany and Slovakia recorded higher economic results. In the fourth quarter of 2011, Greece's economy shrank most substantially - by 7% on an annual basis.
Source: Class (16.02.2012)

Bulgaria Registers 2.3% Inflation Y/Y in Jan 2012 According to the preliminary data, the consumer price index, CPI, in Bulgaria, in January 2012 compared to December 2011 was 100.2%, i.e. the monthly inflation was 0.2%. The data was reported Wednesday by the Bulgarian National Statistical Institute (NSI). The annual inflation in January 2012, compared to January 2011 was 2.3%. The annual average inflation, measured by CPI, in the last 12 months (February 2011 - January 2012), compared to the previous 12 months (February 2010 - January 2011) was 4.0%. In January 2012, compared to the previous month the prices of goods and services in the main consumer groups have been changed as follows: food and non-alcoholic beverages - an increase of 0.3%; alcoholic beverages and tobacco - the prices have remained at the level of the previous month; clothing and footwear - a decrease of 1.9%; housing (rentals, maintenance and repair), water, electricity, gas and other fuels - the prices have remained at the level of the previous month; furnishings, household equipment and routine maintenance of the house - a decrease of 0.1%; health - an increase of 0.2%; transport - an increase of 2.7%; communications - a decrease of 0.1%; recreation and culture - a decrease of 1.1%; education - an increase of 2.0%; restaurants and hotels - an increase of 0.2%; miscellaneous goods and service - an increase of 0.1%. According to the preliminary data of the NSI, the harmonized index of consumer prices (HICP) in January 2012, compared to December 2011 was 100.3%, i.e. the monthly inflation was 0.3%. The annual inflation in January 2012 compared to January 2011 was 1.9%. The annual average inflation, measured by HICP, in the last 12 months (February 2011 - January 2012), compared to the previous 12 months (February 2010 - January 2011) was 3.2%.
Source: Darik Radio (16.02.2012)

Bulgarian citizens avoid borrowing new loans because of old debts Bulgarian citizens, in general, want to repay their debts and avoid borrowing new loans. This trend is confirmed by data of the National Statistical Institute (NSI) about households’ expenditures and incomes for the last quarter of 2011. The figures show that, in the last quarter of 2011, each family paid liabilities amounting to BGN 108.94 on average, compared to BGN 60.89 for the same period of 2010. The average amount per person was twice greater - BGN 44.87, compared to BGN 25.75 at the end of the previous year, showed the breakdown of expenditures. If we examine the "loans and credits" part, it appears that, at the end of 2010, households received an average of BGN 31.36 or BGN 12.75 per person under this item, but this amount was reduced to BGN 29.69, or BGN 12.23 per person, in the last quarter of 2011. On the other hand, savings withdrawn decreased from BGN 97.37 to BGN 93.39 per household, while funds deposited increased from BGN 23.66 to BGN 26.87 on an annual basis. In the fourth quarter of 2011, the total average income per household increased by 7.8% to BGN 997. The earnings from wages were up from BGN 480 to BGN 508 and those from other income increased from BGN 13.49 to BGN 18.74, while the pay from self-employment rose from BGN 54.56 to BGN 81.52. According to some analysts, the growth in wages was not in nominal terms, but it was due to layoffs of the most qualified staff. This move raised the average wage, but it does not mean that income has increased. Pension income is the second most important source of cash for Bulgarian households. The part of this income in the family budgets decreased by 1.6%, to 29%. In the fourth quarter of 2011, pension income increased from BGN 283 to BGN 289, per person on an annual basis, showed NSI data.
Source: Class (17.02.2012)

Every Ninth Bulgarian Is Unemployed Unemployment in Bulgaria has reached 11.1%, data of the Employment Agency for January shows. In the first month of the year 366,000 jobless were registered in the labour bureaus, which is by 23,570 people more than in December 2011. In January were registered 50,245 new unemployed, the Employment Agency announced. Half of them have been dismissed by private companies. Most job positions were cut in the industry – about 10 thousand and in the trade – 6,800. The state administration has laid off 7,390 civil servants. At the same time 12,212 unemployed have found a job in January and their number is 3,216 more than in the previous month. These jobs were opened mostly under employment programs supported by the government or EU funds. Unemployment rate in Bulgaria once again reached its highest levels registered in January and February 2011.
Source: Standart (17.02.2012)

13% of Bulgarians have shopped online 13% of adult Bulgarians or 28% of Internet users in our country have shopped online at least once, according to the data from the special sociological study of BBSS Galup International, dedicated to the global financial crisis. With the increase of the share of Internet users in Bulgaria and the development of websites for group online shopping, Internet marketing is becoming an even more popular and accessible alternative for shopping in stores and commercial establishments. Less than a year ago, 5% of the entire population and 11% of Internet users said that they had purchased a product or service through collective shopping websites. Online shopping is most popular among Bulgarians of between 18 and 40 years of age. Besides, 29% of all people aged 18-25 years in our country stated that they had made a purchase through a website at least once in their lives. The percentage of university graduates shopping online is the same. There is a substantially higher proportion of users of the service provided by Internet retailers among Bulgarians with an average and above-average financial standard, as well as among the inhabitants of Sofia. The most frequently purchased goods online are clothing and footwear. 57% of Bulgarians who have ever shopped on the Internet stated that they had purchased clothing or shoes. Technical devices are the second most popular item purchased by 26% of Internet users. These are followed by books, movies and music purchased online by 20% of Bulgarians relying on Internet commerce. Online stores of producers and traders are the most preferred way of shopping online by Internet buyers. 38% of them stated that they prefer to purchase goods from such shopping websites. Furthermore, the collective shopping and auction websites of the ebay type are the next most preferred websites, confirmed by 26% of the respondents. While online stores and auction websites are most popular among younger Internet shoppers, collective shopping websites enjoy greater popularity among citizens of between 26 and 40 years of age. Despite the considerable share of the Internet audience which avails itself of the services of e-commerce, Bulgarian society continues to be rather skeptical in terms of the security of this type of services. 60% of adult Bulgarians are still hesitant as to whether it is safe to shop on the Internet in Bulgaria. 27%, in turn, believe that this undertaking is too risky and uncertain. Only 13% of the entire population consider online shopping to be secure and safe.
Source: Class (20.02.2012)

About 10% of the engineering companies in the country have ceased operations “About 10% of the companies in the mechanical engineering industry have ceased operations because of the crisis,” announced Iliya Keleshev, Chairman of Bulgaria’s Machine Building Branch Chamber. He took part in a presentation of the forthcoming industrial exhibition in Sofia, focusing on key sectors of the Bulgarian industry. Some 2,000 companies in Bulgaria operate in the mechanical engineering branch, and 350-400 of them are are responsible for over 90% of the industry's products in the country. “If the internal market continues shrinking and foreign markets face difficulties, it is quite possible, that even more companies would cease their activities in 2012,” said Keleshev. A total of 110,000 people are employed in the mechanical engineering industry, which is about 28,000 less than those in 2008. In the period 2002-2005, investments in mechanical engineering were equal to the depreciations, according data of the Branch Chamber. Officials from the Machine Building Branch Chamber hope that in 2012, the industry level achieved in 2011 will be maintained, and even growth would be recorded in the second half of 2012. Keleshev predicted a reduced level of exports in January and February. More than half of the industry production is exported, as 60% of exports are to EU countries.
Source: Class (21.02.2012)

Bulgaria Takes Last Place in Size of Salaries Bulgaria lingers last in the European Union regarding minimum salary for January, data from Eurostat reveals. Four months ago the minimum salary in Bulgaria was raised from 240 leva to 270 leva and as of May 1, 2012 it will be increased once again to 290 leva, but even then Bulgaria will remain on its last position among the EU member states. Bulgaria is outstripped by Romania, where the minimum monthly pay is 162 euro. In the Baltic States and Hungary the lowest wage is between 200 and 300 euro, in the Czech Republic, Slovakia and Poland it is between 300 and 400 euro. The highest minimum salary is paid in Luxembourg - 1,801 euro. In Great Britain, France, Belgium, Netherlands and Ireland minimum wage is over 1,000 euro. Between 500 and 900 euro varies the lowest pay in Portugal, Malta, Spain, Slovenia and Greece.
Source: Standart (22.02.2012)

Bulgaria Ranks 5th in EU in Economic Growth Bulgaria ranks fifth in fastest economic growth in the EU for 2012, according to the prognosis of the EC. The forecast economic growth for Bulgaria has been decreased by 0.9 percentage points to reach 1.4 percentage points. The reason for this decrease are the negative forecasts for the whole EU. Brussels even forecasts a recession of 0.3% in the Euro zone. The forecasts is for economic growth in 17 EU member state, among them Bulgaria. 9 EU countries will have negative economic growth, one 0% economic growth.
Source: Standart (24.02.2012)

Business Climate Deteriorates in Bulgaria In February Business climate in Bulgaria has worsened compared to the previous month, a survey made by the National Statistical Institute shows. Business conditions in construction, retail trade and services are bad. Only in industry business conditions have remained on the same level as in the last months. Production activity and orders have dropped in February. However, managers expect business to recover. The unstable economic environment is the main factor that hampers the companies.
Source: Standart (29.02.2012)

Unemployment increases in Euro zone The seasonally adjusted unemployment rate in in the euro area was 10.7 per cent in January 2012, compared with 10.6 per cent in December 2011 and 10 per cent in January 2011. The EU27 unemployment rate in the EU's 27 countries as a whole was 10.1 per cent in January 2012, compared with 10 per cent in December 2011 and 9.5 per cent in January 2011. Eurostat, the statistical office of the European Union, estimates that 24.325 million men and women in the EU27, of whom 16.925 million were in the euro area, were unemployed in January 2012. Among Member States, the lowest unemployment rates were recorded in Austria (four per cent), the Netherlands (five per cent) and Luxembourg (5.1 per cent), and the highest in Spain (23.3 per cent), Greece (19.9 per cent in November 2011), Ireland and Portugal (both 14.8 per cent). In January 2012, 5.507 million young persons (under 25) were unemployed in the EU27, of whom 3.314 million were in the euro area. In January 2012, the unemployment rate was 8.3 per cent in the USA. In December 2011 it was 4.6 per cent in Japan. The last available figures from the UK point to an unemployment rate of 8.4 per cent. In Bulgaria it is 11.5 per cent.
Source: econ.bg (02.03.2012)

Bulgaria's economic growth in 2011 more than that of the EU Bulgaria’s economic growth in 2011 surpassed that of the EU and the Eurozone. According to National Statistical Institute (NSI) data published today, our country’s economy grew by 1.7% and not by 1.6% as according to preliminary estimates. Meanwhile, Eurostat reported a growth of 1.5% for all the 27 EU member-states and of 1.4% for the single monetary union. In 2011, Bulgaria produced goods and services worth BGN 75.265 bn ($53.513 bn/ˆ38.482 bn) or BGN 10,109 ($5,168.7/ˆ7,187.6) per capita. Despite the seemingly optimistic data, our country’s economic growth was much less than planned in the budget. The report for last year’s fiscal plan projected it at 3.6% and the figure was changed to 2.8% in the budget report for 2012. Economic growth in our country is expected to remain at 2.9% this year. The result is lower than forecast by the European Commission, the World Bank and the International Monetary Fund. All these institutions expected it at around 2%. According to NSI data, the gross value added generated by the national economy stood at BGN 64.830 bn or 1.8% up, compared to 2010. The industrial sector accounted for 31.2% of the value added and the sector of services – for 63.2%. If we consider quarterly data, however, the figures clearly show the slowdown in the domestic economy. Year-on-year growth in Q1, 2011 was 3.3%, 2.2% in Q2 , 2011 (revised from 2%) and 1.6% in Q3, 2011. At the end of the year, economic growth was only 0.3% on a quarterly basis and 1.6% on an annual basis. On this background, the NSI’s data showed a higher growth in 2010 - 0.4% on an annual basis, instead of 0.2%. The end of last year was difficult not only for Bulgaria, but for the entire European economy as well. According to Eurostat, in Q4, 2011, a 0.3% decrease, compared to Q3, 2011 was registered both in the EU and in the Eurozone. If this trend persists during the present quarter, Europe will officially fall into recession. In July-September, the figures were still positive - 0.1% growth in the monetary union and 0.3% in the EU.
Source: Class (07.03.2012)

Bulgarian economy grows by 1.7% in 2011 Bulgaria's gross domestic product grew by 1.7 per cent in 2011, data from the National Statistical Institute (NSI) showed on March 6. An earlier flash estimate from the NSI put the figure at 1.6 per cent. The numbers fell well short of the Government's growth target of 3.6 per cent, but also the recent estimates from the International Monetary Fund and the European Commission, which had projected economic growth of 1.9 per cent and 2.2 per cent, respectively. In absolute terms, the gross domestic product (GDP) in 2011 was 75.27 billion leva in current prices. Per capita GDP was 10 109 leva. Fourth-quarter GDP was up 1.6 per cent on an annual basis and 0.3 per cent higher than in the previous quarter. Despite a trade gap in the last quarter of 1.38 billion leva, the full-year figure showed a trade surplus of 509 million leva. NSI also revised the final figures for 2010 GDP, which put economic growth up to 0.4 per cent (versus the earlier figure of 0.2 per cent growth).
Source: Dnevnik (07.03.2012)

Bulgaria among Fastest Economic Runners The growth of the Bulgarian economy in 2011 was 1.7%, announced the National Statistical Institute. The Ministry of Finance had forecasted a GDP growth of 2.8%. However, to the background of the overall situation is Europe, the results are not that bad. In the last three months of 2011 the GDP grew by 1.6% compared to the same period in 2010 and by 0.3% compared to the previous trimester. These figures place Bulgaria among the fast economic runners in Europe. According to the Eurostat data aired so far, only nine European countries made a positive economic growth in the last trimester of 2011 compared to the previous period and there are four countries that have registered a higher economic growth than Bulgaria has. A number of countries like the Czech Republic, Italy, the Netherlands and Slovenia are now officially in recession as for a second trimester on the row their economies have moved downwards. In the last trimester of 2011 Bulgaria's GDP is 19, 46 billion leva as for the entire 2011 it is 75, 26 billion leva. In 2011 Bulgaria's GDP was 5,168 euro per capita. In the last three months of 2011 was registered growth of 6.4% y/y in real estate operations. Creation and diffusion of information as well as telecommunications have marked 6.8% increase. Mining industry, processing industry, delivery of electricity, central heating and natural gas have growth by 6.1%.
Source: Standart (07.03.2012)

Bulgarians Produce 14,7 BGN per Hour The Bulgarians have started working harder and more efficiently, shows the data of the National Statistical Institute (NS). While Bulgaria's economy registers a growth of 1.6% in the fourth trimester of 2011 on an annual basis, the number of the employed Bulgarians dropped by 2.3% to reach 3.3 million people. The total number of worked hours for the trimester is 1.392 billion. As a result of that the GDP per each employed increases by 2.6%. This makes the sum of 5,891 BGN per each employed from the current volume of the GDP as each employed produces an average of 14,7 BGN for one working hour. The labour productivity is the highest in the sector of services where the Gross Added Value (GAV) is 13,1 BGN for one working hours on the average. Each employed Bulgarian in the sector of industry creates 11,7 BGN per hour, in agriculture only 2.8 BGN an hour.
Source: Standart (07.03.2012)

Bulgaria's Industrial Production Sees 3.6% Drop Jan 2012 Y/Y Bulgaria's working day-adjusted industrial production index decreased by 3.6% in January 2012 year on year, the country's National Statistical Institute has informed. According to the Institute's seasonally adjusted preliminary data, Bulgaria's industrial production decreased by 0.6% in January as compared to December 2011. Annual decreases were registered in the production of investment goods by 7.6%, in the production of energy by 4.2% and in the production of intermediate goods by 2.4%. Significant monthly increases of production in manufacturing were seen in the manufacture of paper and paper products (by 20.2%), in the manufacture of basic metals (by 14.4%), in the manufacture of fabricated metal products, except machinery and equipment (by 13.1%), in the manufacture of rubber and plastic products by (12.1%).
Source: Dnevnik (08.03.2012)

Bulgarians Tighten the Belt Bulgarians will have to tighten the belt further. In January 2012 commodity turnover in retail trade has decreased by 0.2% compared to January as sales have dropped in almost every sector, the National Statistical Institute announced. Retail trade with textile, clothing, shoes and leather products has marked the most significant drop of 13.2%. By tradition sales in January slow after the Christmas shopping, but this year retail has went down by 2.6% compared to January 2011. Sales have shrunk also on y/y base - in trade with textile, clothing, shoes and leather products by 17.2%, in trade with house appliances, furniture and other household goods, by 6.4%. Sales in automobile fuels have fallen by 5.6% and in computer and communication, by 1.6%. Apparently cutting of expenses has a negative effect on health - sales of medicine have jumped by 10% in January compared to January 2011.
Source: Standart (08.03.2012)

Some 78% of logistics companies already work at pre-crisis levels “Some 78% of logistics companies report that they are already operating at pre-crisis levels,” said Ivan Petrov, Vice President of the Bulgarian Association for Freight Forwarding, Transport and Logistics. More than 80 companies are members of the organisation, representing two-thirds of the total number of companies providing freight forwarding services. Pharmaceutical, manufacturing, metallurgical and energy companies have reported the highest growth in turnover. The volumes of transport inputs, construction materials and the transit of raw materials have also registered a significant increase. “In 2010, 68 companies from the association made a turnover of BGN 535 mln, compared to BGN 539 million from the turnover of 50 companies in 2008,” said Georgi Minchev, President of the Association. According to him, there is no harmony in Bulgaria’s transport policy - infrastructure sites are built at certain places, but because of politicians or other factors these are not used at full capacity. There is no precise statistics on the turnover and profit for 2011 yet, because the fiscal year ends on March 31. According to data of the association, there were no bankruptcies or major changes in the operation of the logistics market last year. About 15% of the companies made investments in improving and expanding their operation and another 15% are planning similar investments in the next 12 to 18 months. Companies from the sector say the wages of their employees were increased by 20% last year. Moreover, every second company plans to hire new staff in 2011. The ratio between exports and imports is increasing and now stands at 60% to 40%. “This shows that from a predominantly importing country Bulgaria is turning to a country with more exports and this will boost the operation of logistics companies,” commented Petrov. According to him, the main challenge is the lack of adequate infrastructure and not just the construction of facilities.
Source: Class (08.03.2012)

Retail Trade Turnover Fell in January Compared to Previous Month According to preliminary and seasonally adjusted data by the National Statistical Institute (NSI), the turnover in retail trade (excluding motor vehicles and motorcycles) fell by 0.2 per cent in January, 2012 compared to the previous month, and by 2.6 per cent, compared to January 2011. The January, 2012 decline in turnover is observed in almost all economic activities, with the largest fall (13.2 per cent) being in the retail sale of textiles, clothing, footwear and leather goods. The smallest decrease was registred in the dispensing chemist retail sale of medical and orthopaedic goods, cosmetic and toilet articles - by 0.1 per cent. Retail sale of food, beverages and tobacco retained their December, 2011 levels. In January 2012 compared to the same month of 2011, an increase in turnover was observed in the dispensing chemist retail sale of medical and orthopaedic goods, cosmetic and toilet articles (by 10 per cent) and in the retail sale of food, beverages and tobacco (by 0.2 per cent). Drops were observed in the retail sale of textiles, clothing, footwear and leather goods (17.2 per cent), in the retail sale of audio and video equipment, hardware, paints and glass, electrical household appliances (6.4 per cent), in the retail sale of automotive fuel (5.6 per cent) and in the retail sale of computers, peripheral units and software, telecommunications equipment (1.6 per cent).
Source: Darik Radio (08.03.2012)

The crisis hits the engine of growth in the country - exports fall for the first time in two years The crisis has hit the engine of economic growth in Bulgaria - exports. In January, these decreased by 10.2% on an annual basis to BGN 2.8 bn, the National Statistical Institute (NSI) reported today. Exports to the EU shrank by 7.6%, and to third countries – by 14% to BGN 1 bn. This is the first decline in exports after more than two years of growth – for 26 consecutive months from November 2009 until the end of 2011. Compared to January 2010, however, exports rose by nearly 57% and compared to the same month of 2009 - by 76%. Imports also declined but only by 0.3% to BGN 3.15 bn (excluding delivery costs). If the latter are included, the drop is of 0.2% to BGN 3.3 bn. The foreign trade balance was negative in January 2012 and stood at BGN 509.3 mln, compared to BGN 199.4 mln for the same month of 2011, or a some BGN 309.9 mln increase in the deficit. Some BGN 284 mln of it was accounted for by the trade with countries outside the EU (compared to BGN 94.1 mln in January 2011). The main reason for the deteriorating foreign trade balance is the decrease in Bulgaria’s exports to Turkey by BGN 110 mln to BGN 235 mln. If transport costs and imports insurance are deducted, the trade balance will again show a deficit of BGN 345 mln, compared to BGN 37 mln in January 2011. Bulgaria’s main trade partners outside of Europe are Turkey, the United Arab Emirates (UAE), China, Macedonia, Russia and Serbia, accounting for 53.1% of the exports to third countries. Exports to the UAE, Brazil and Korea have increased considerably, while the highest decrease in exports was registered in the trade turnover with Singapore, South Africa, Bosnia and Herzegovina, and Croatia. In January 2012, Bulgaria’s imports from countries outside the EU increased by 0.9% year-on-year and stood at BGN 1.4 bn. According to statistics, the biggest increase was registered in imports from Bosnia and Herzegovina, the Republic of Korea, Peru, South Africa, Taiwan and India, and the biggest drop - from the UAE, Israel and Georgia.
Source: Class (13.03.2012)

Bread prices to increase by less than 10% “The price of bread will certainly increase but the market will hardly be able to cope with a 10% price hike. That is why bread prices will rise below this level,” predicted Mariana Kukusheva, Chairwoman of the Federation of Bakers and Confectioners, on TV7. “There is no cheaper foodstuff than Bulgarian bread in the European Union,” added Kukusheva and gave as example our neighbour Romania where bread is 50% more expensive. According to her, this is one of the reasons for the lack of foreign investments in the sector. “All components are included when calculating the price of bread and when the price of the main input has increased by more than 15% -20% this cannot but affect the cost price of the product, which is quite different from the price consumers pay,” commented Kukusheva. The surcharge varies between 20% and 40%, and Kukusheva proposed that retailers should bear part of it in order to reduce the price increase. She said that the processes in the country affect the entire chain grain-flour-bread. “Bread has no political price but it has a market cost and it is quite normal for its price to increase with the price increase of fuels and gas,” she added. “There is no programme for subsidising bread making and we do not expect Government support. It is not serious to think of fixed bread prices,” Kukusheva pointed out. According her, there is a grey sector in the branch and the bread returned from the retail chain is sold in neighbourhoods inhabited by poor people, mostly minorities.
Source: Class (13.03.2012)

Inflation Rates in Bulgaria Slow down to 2% The annual inflation in Bulgaria slowed down to the record low size of 2%, shows the data of the National Statistical Institute. This is the lowest level for the last 2 years. The previous lowest annual inflation rate of 1.4% was registered in June 2010. Thus, bank saving turns absolutely profitable. The deposit interests in Bulgarian currency are about 6%. Only for February 2012 the inflation rate is 0.9% and for the first two months of the year the hike in prices is by 1.1%.
Source: Standart (13.03.2012)

Bulgaria's Export Drops after 26 Months of Growth Export from Bulgaria dropped by 10.2% y/y to 2.8 billion leva in January, the national Statistical Institute reports. This is the first fall after twenty six months in a row of positive growth y/y as the trend started in 2009. Compared to January 2011 export is still increasing by 57% and compared to 2009 the growth is 76%. In January 2012 import has fallen just by 0.3% y/y to 3.15 billion leva (delivery expenses excluded). The negative trade balance raises to 345M leva in January 2012 with 37M leva deficit in January 2011. In 2011 export has increased by 30% to 39.56 billion leva and the import by 21% to 43.37 billion levs.
Source: Standart (13.03.2012)

Bulgaria’s 2011 Unemployment Rate Rises 1.0 Pct Pt to 11.2% Bulgaria's unemployment rate rose by one percentage point last year reaching 11.2%, official statistics showed on Friday. Last year jobless people totalled 372,300, of whom 215,700 were men and 156,600 were women, the National Statistics Institute (NSI) reported on its website. Long-term jobless, i.e. people without a job for over a year, totalled 209,400 and accounted for 56.2% of all unemployed. The long-term jobless rate stood at 6.3% last year. According to data of the government’s Employment Agency, Bulgaria's unemployment rate was 10.4% at the end of 2011, as the average annual rate stood at 10.1%.
Source: Capital Dàily (19.03.2012)

Bulgarian economic growth forecast down to just 1.4% of GDP in the National Reform Programme 2012-2020 Bulgaria's economic growth would reach a modest figure of 1.4% of GDP in 2011, instead of 2.9% as was set in the budget. This showed a draft of the National Reform Programme, for 2012-2020, which was published by the Ministry of Finance yesterday. Experts specify that the slowdown would be mainly due to the lower contribution of net exports to the economy. Regarding consumption, the forecast is that households would remain cautious, but would contribute positively to the GDP growth. The updated draft of the Reform Programme states that economic growth would be between 2.5% - 4% in the period 2013-2015. Investments are expected to increase because of the absorption of European funds. They would reach ˆ 1.14 bn in 2012, and ˆ2.5 bn - within three years. According to the budget report for 2012, the stable macroeconomic environment and tight fiscal discipline should lead to a more dynamic investment activity. The Reform Programme takes into consideration that amendments to the Investment Promotion Act are due to be passed in 2012, aimed at stimulating investments in the high technology services. This would support the exports of services, which would exert a positive impact on the current account, experts explain. The National Reform Programme also notes that the labour market in 2012 would remain at the same level as in the previous year. According to estimates, in the first half of 2012, the unemployment rate would even be anchored to a higher level, on an annual basis, but after the summer it would be down to the level of the second half of 2011 - 11.3%. A significant improvement in the labour market is expected in 2013. By the end of 2015, the average annual growth in employment would be about 1% and the unemployment rate would gradually decrease to 9.8%.
Source: Class (20.03.2012)

Bulgaria's Labor Costs Grow by Nearly 10% Q4 2011 Y/Y Labor costs in Bulgaria increased by 9.7% in the fourth quarter of 2011 year on year, the country's National Statistical Institute has informed. The total hourly labour cost grew by 6.6% in industry, by 17.4% in services and by 9.6% in construction.by 9.7% compared to the same period of 2010. The highest annual growth in total labor costs was registered in the information and communication sector – by 36.8%, followed by scientific research (29.3%) and the trade and repair of motor vehicles (22.8%). A 10.1% decrease in total labour costs was observed in the real estate sector. In the structure of total labour costs, wage and salary costs per hour worked grew by 9.7% in comparison with a year earlier, while non-wage costs rose by 10.5%.
Source: Capital (20.03.2012)

Bulgaria’s Cabinet was expected on March 21 2012 to name former caretaker prime minister Reneta Indzhova (58), a political economy graduate who spent 10 years living in the United States, as the new head of the country’s National Statistical Institute (NSI). Indzhova is to succeed Mariana Kotseva, who at the end of 2011 was appointed deputy director-general of the European Union’s statistics office Eurostat. Indzhova graduated in political economy and sociology from the Karl Marx Institute of Economics in Sofia, which after the end of the communist regime was renamed the University of National and World Economy. She lectured at the university and at the Technical University in Sofia, was an economic adviser to the 1990/91 Grand National Assembly. After heading the Privatisation Agency Indzhova was appointed by then-president Zhelyu Zhelev as acting prime minister after the collapse of the 1992/94 Lyuben Berov administration. She headed the administration from October 1994 to January 1995, and was nicknamed the Iron Lady for making cutbacks to the public administration. She is a former bank director at United Bulgarian Bank and was a consultant to the Tokuda Group.
Source: Standart (21.03.2012)

Services and trade influence positively the business climate The business climate in the country has improved slightly in March, due to more favourable attitudes in the retail and service sectors, according to the National Statistics Institute. Managers from the industry and the construction branches are optimistic for the next 3-6 months. In March, company executives were by 2.3% more optimistic than in February, when the indicator reverted to its crisis time levels. The services sector contributed most to the improvement. The business climate within the sector went up by 9.2%, on a monthly basis. So far, companies refrain from forecasts on dismissals and are more optimistic about the next quarter. Again, managers mentioned the uncertain economic environment, competition and financial difficulties as major problems, but they did not envisage any price increases in the coming months. In the retail sector, business attitudes also improved by 2.4% in March, compared to February. Furthermore, companies are more optimistic in their forecasts for the next three months, in terms of volume of sales and orders to suppliers. Most obstacles came from the economic environment. Last month, however, the factor "competition in the industry" reinforced its negative impact with 11.5%, ousting the factor “demand". When it comes to selling prices, retailers do not expect an increase over the next three months. The business climate remained unchanged in the manufacturing industry, shows further the NSI data. Meanwhile, production and orders from abroad are dwindling. However, the survey among managers in the sector reported optimism about the state of the businesses in the next six months and there is not intention to raise prices yet.
Source: Class (29.03.2012)

Our homes depreciate by BGN 12.6 bn in a year Residential property purchased with private funds or credits, depreciated by 12.65 bn in the last year. At the end of 2011, these assets stood at BGN 207.9 bn, compared to BGN 220.6 bn in December 2010, showed an analysis of the wealth and liabilities of households, conducted by UniCredit Bulbank. In general, however, the financial wealth of Bulgarians increased by a record figure of BGN 4 bn in 2011. In the last quarter of the year alone it surged by BGN 1.8 bn to the amount of BGN 19.2 bn. This was primarily due to the bank deposits, which jumped by BGN 1.4 bn in the period September - December. According to the analysts of the bank, deposits recorded a double-digit annual growth in the last quarter of 2011. By the end of December, these were 77.3% of the total financial assets. Only in a year, the savings increased from a total of BGN 27.34 bn to BGN 30.88 bn. Deposits in the national currency (BGN) increased nearly four times faster than those in foreign currency and even outstripped them. By the end of 2011, deposits in BGN exceeded the amount of BGN 15.5 bn, showed the data further. The great increase in the savings in BGN is due to the higher yields. Along with the increase in savings, the population continues to settle its debts - by the end of 2011, debts came below 52%, compared to the record figure of 71% in early 2009. "Liabilities are expected to decrease to about 47% at the end of this year, and to start stabilizing in 2013 at the earliest," said Milen Kasabov, senior economist at UniCredit Bulbank.
Source: Class (06.04.2012)

According to EU data, less than 7% of our scientists are directly involved in the manufacturing sector Just 6.7% of the scientists in Bulgaria are employed in the manufacturing sector, given that the respective average figure in the EU is nearly 50%, and in the USA - more than 80%, showed data of the European Commission, quoted by the BTA. According to the released information, just 0.4% of GDP is allocated for R&D in Bulgaria, and this is one of the lowest recorded levels in Europe, stated experts from the Euro Perspectives Foundation. The low figure is due to the structure of the Bulgarian economy. A significant part of the companies in the country are small and medium-sized enterprises, which do not have money for R&D activities. The large enterprises in the country are owned by foreign groups, which use them just as production units instead of R&D base. Moreover, there is no clear State policy in this field. There is a National Council for Innovation, which has not met for years, commented for Klassa Vasil Velev, Chairman of the Bulgarian Industrial Capital Association. The Innovative Platform initiative, aimed at identifying more opportunities in this area, is expected to be launched today. The creation of the Platform is carried out under the three year project - South-East European Cooperation for Innovation and Finance. Organizations from Bulgaria, Austria, Greece, Italy, Macedonia, Romania, Serbia, Slovenia, Hungary and Croatia partake in it. Only a small number of companies understand the importance of R&D activities for overcoming the negative effects of the current financial crisis, and those who focus on creating and storing new knowledge are even more limited in number, report experts. They say there are few young people attracted by scientific careers, which, combined with the dynamic processes of outflow of scientists from the country, leads to serious ageing of the scientific staff. A reference to the register of the academic staff of universities, supported by the Ministry of Education Youth and Science, shows that in 2008 there was no professor younger than 35 years of age and just 12 were between 35 and 44 year old. Over 600 professors (out of 1,290) were over 65 year old. There were also some 55 assistants professors, who were older than 65. Bulgarian scientists are lagging behind in terms of publications, mostly because the career development in our country is not necessarily associated with numerous scientific publications. The publications of our scientists are not always at a high level and often are not featured by originality. The high publication costs in internationally recognized journals are an obstacle as well. Strengthening the links between science and businesses is a major focus of the EU R&D policy. Not surprisingly, when formulating the EU objective for allocating some 3% of GDP for R&D activities, it was emphasized that two-thirds of the funds should come from the private sector.
Source: Class (09.04.2012)

Bulgaria's industrial production drops February 2012 Bulgaria's seasonally adjusted industrial production index decreased by 2.1% in February 2012 as compared to the previous month, according to preliminary data released by the country's National Statistical Institute. The most significant decrease was observed in the production of "other non-metallic mineral products" (by 32.4%), while the manufacture of paper and paper products saw the highest increase (by 16.8%). The working day adjusted industrial production index in February decreased by 5.5% year on year. Year on year decreases were registered in the production of intermediate goods by 9.2% and in the production of energy by 8.2%, while the production of investment goods increased by 8.8%.
Source: 3e-news (09.04.2012)

Exports slow down to 6.1%. Imports are on the rise Exports - the engine of economic growth in Bulgaria - are picking up and, for the first two months of the year, the decline in exports slowed down to 6.1%. In absolute value, in January, our country exported goods worth nearly BGN 5.7 bn. After the 10% decline of exports in January, the drop in February was limited to a mere 1.8% or BGN 2.9 bn compared to February 2011, according to the preliminary data of the National Statistics Institute (NSI) published yesterday. Imports for January-February 2012 amounted to BGN 6.9 bn (based on CIF prices), or 7.2% over the same period of 2011. In February 2012 alone, total imports increased by 13.2%, exceeding BGN 3.5 bn. At the beginning of 2012, exports to third countries decreased by 2.6% and amounted to BGN 2.3 bn. Our main trading partners, such as Turkey, China, the United Arab Emirates, Russia, Serbia and Macedonia, accounted for 51.2% of the exports to non-EU countries. There was also considerable growth in exports to the United Arab Emirates, Canada, Syria and Brazil. A serious decline was registered in exports to Singapore, South Africa, India and Croatia. In February alone, exports to third countries increased by 10.6%, up to BGN 1.2 bn compared to the same month last year. In the first two months of 2012, imports increased by 8.6%, up to BGN 2.9 bn. Imports from Kazakhstan, Bosnia and Herzegovina, the Republic of Korea and Syria registered the highest growth rate, while the lowest imports rate was reported for Brazil, the United Arab Emirates and the Ukraine. In February 2012, imports from third countries increased by 16.8% on an annual basis, reaching nearly BGN 1.5 bn.
Source: Class (10.04.2012)

Properties have become cheaper by 34 % for four years Homes’ prices have fallen by 34% for four years from 2008 till 2011, Yavlena calculations based on NSI’s data show. The price has fallen by 37 % in Sofia.Solely in 2011, as compared to 2010 the decrease was by 6.42 % in the capital city and on the average by 6.07 % for the rest of the country. Their number was nearly 310 000 in 2008, as compared to 277 700 in 2011. Deals have fallen down by about 28 % for the past four years. Reduction is bigger in deals with mortgages- by 58%- from 79 500 to 33 500. Thus if in 2008 10.6 mortgages were entitiled to 1000 people, four years on their number is 4.46. Real estate byuers last year were mostly people between 30 and 40 years old, Yavlena says. 2-bedroom apartments, as well as those with an area between 60 and 90 square meters were most preferred. Demand of homes priced between EUR 25 000 and EUR 50 000 has increased though their supply is limited.
Source: profit.bg (17.04.2012)

Personal expenditures of Bulgarians increase twice as fast as incomes In 2011, the total average annual income per household reached BGN 3, 937, which was 3.3% higher than in 2010. The total expenditures per capita showed an increase of 6.6 %, or BGN 3, 494, according to data of the National Statistical Institute, posted yesterday. Thus, the estimated net disposable funds per person stood at BGN 443 for the entire 2011. The bulk of the costs (85-86%) were traditionally spent on meeting of personal needs: 36.2% were spent on food and 5.2% - on payment of taxes. Some 96.1% of the earnings were received in the form of current income based on salaries, pensions, welfare benefits, child allowances as well as revenue gained from entrepreneurship initiatives and the sale of real estate. Only 3.9% of the total income were based on loans, credits and savings. The salary continues to be the major source of revenue in the family budget. Last year, it formed 51.8% of the total income, while in 2010 it constituted 50.9% of it. In nominal terms, last year's average salary per capita amounted to BGN 1, 960 versus BGN 1, 847 in 2010. That is, there is an increase of 5.5%. In contrast, a decline in revenues from pensions was reported. Social transfers (pensions, family allowances for children, welfare benefits, scholarships, unemployment benefits, etc.) formed 33.3% of the total annual income per person in 2011, while in 2010 this share reached 34.2 %. There was also a slump in the relative share of household disposable income. In 2002, it reached 19.7 %, in 2005 it stood at 13.4% and last year it was merely 1.7%. In fact, consumption expenditures on housing, water, electricity and fuels hiked by 4. 9% compared to 2010, according to the NSI data. An increase was also registered in terms of the spending on health care (8.3%), transport (4.1%) and communications (5.9%) services. The funds allocated for leisure, culture and education activities also varied within the same range. The costs of alcoholic beverages and tobacco, however, were higher by 4 - 5%. The share of expenditures on clothing and footwear reached 3% in 2011.
Source: Class (18.04.2012)

Bulgaria Sees EU's 3rd Lowest Inflation Rate March 2012 Bulgaria's inflation rate was 1.7% in March 2012, EU's third lowest after Sweden (1.1%) and Greece (1.4%). The March inflation rate was highest in Hungary (5.5%), Estonia (4.7%) and the Czech Republic (4.2%). Compared with February 2012, annual inflation fell in fourteen Member States, remained stable in four and rose in eight, according to Eurostat's data. The lowest 12-month averages up to March 2012 were registered in Sweden (1.3%), Ireland (1.4%) and Slovenia (2.1%), and the highest in Estonia (4.9%), Romania (4.6%) and Hungary (4.3%). The bloc's annual inflation was 2.9% in March 2012, unchanged compared with February. A year earlier the rate was 3.1%. Monthly inflation was 1.1% in March 2012. The annual inflation in the Euro Area was 2.7% in March 2012, unchanged compared with February2. A year earlier the rate was 2.7%. Monthly inflation was 1.3% in March 2012.
Source: Darik Radio (18.04.2012)

Bulgaria’s negative trade balance increases 2.5 times in a year Bulgaria’s negative trade balance has increased 2.5 times in a year, according to an analysis of the Bulgarian Industrial Association (BIA). In January 2011, it was BGN 200 mln, while during the first month of 2012 it reached BGN 509 mln. This shows that the decline in GDP is mainly due to the passive trade balance, while in 2011 the GDP growth came primarily from the higher exports volumes and a reduction in the negative trade balance, consider experts. According to them, the trade turnover of Bulgaria in 2011 was featured by a higher growth in exports (of BGN 1.1 bn, or 13.5%), compared to the increase in imports. Some 15 major commodity groups, which formed 88% of exports in 2011, reported a growth of over BGN 100 mln. These included: ferrous and nonferrous metals, mechanical engineering products, mineral fuels, agricultural products, chemical and pharmaceutical products, textiles and clothing. Some 12 major commodity groups, which accounted for 89% of the imports value in 2011, recorded an increase of BGN 100 mln. Some 55% of the export growth were due to changes in the price levels of goods and 45% - to larger quantities exported. Vice versa, 71% of the import growth came from larger volumes and 29% were due to price changes. Preliminary results for 2012 (January) show a decline in trade, as exports continued decreasing at a higher rate than imports. Exported goods were worth BGN 317 mln, (10.2% less compared with January 2011). Imports declined by BGN 8 mln (0.2%), shows the analysis of the BIA.
Source: Class (23.04.2012)

The budget deficit shrinks by BGN 622 mln down to BGN 1.576 bn Last year, the budget deficit decreased by 28.3%, or by BGN 622 mln, down to BGN 1.576 bn. This is 2.1% of GDP, compared with BGN 2.198 bn, or 3.1% of GDP in 2010, according to the preliminary report of the National Statistical Institute (NSI). Thus, the Bulgarian deficit is twice lower than the average of 4.5% achieved in the EU or the deficit of 4.1% reached by the Euro area, according to the data released by Eurostat. In fact, the countries with the worst performance in terms of state debt for last year are Ireland (-13,1 % ), Greece (-9,1 % ), Spain (-8,5 % ), UK (- 8.3 % ), Slovenia (-6,4 % ), Cyprus (-6.3 % ), Latvia (-5,5 % ), France and Romania (-5,2 %) and Poland (-5,1 % ). Among the top performers are Finland with only 0.5 % deficit, followed by Luxembourg with 0.6 % and Germany reporting 1 % deficit. Moreover, Hungary realised a 4.3 % surplus of GDP, while Estonia achieved a 1 % GDP surplus and Sweden attained a 0.3 %. Improvement in public finances was reported in 24 EU member states. In two of the EU countries, the fiscal situation last year deteriorated and in one of them it remained unchanged. With respect to the debt-to-GDP ratio, Bulgaria is also coping quite well. According to Eurostat, in 2011 the Bulgarian external debt reached BGN 12.293 bn, or 16.3 % of GDP. Thus, our country ranks second in the European Union. We are outpaced solely by Estonia with a 6% external debt. In contrast, Bulgaria outranks Luxembourg (with 18.2 % debt-to-GDP ratio), Romania (33.3 % ), Sweden (38.4 % ), Lithuania (38.5 % ), Czech Republic (41.2 % ), Latvia (42.6 % ), Slovakia (43.3 %) and Denmark (46.5 %). Bulgaria is also among the front-runners in terms of lower government spending rate of a mere 35.2 % versus 49.1 % and 49.3 % for the EU and the Eurozone, respectively. In the previous years, the governments allowed themselves larger expenditures reaching 37.4 % of GDP in 2010 and 40.7 % in 2009.
Source: Class (24.04.2012)

Bulgaria Q1 Housing Prices Edge down 0.4% Q/Q In the first quarter of 2012 Bulgarian housing prices edged down by 0.4% from the previous three months, with apartments being most expensive in the capital city of Sofia, the National Statistics Institute (NSI) said on Monday. The average price of apartments in Bulgaria fell to 883.85 levs ($596.2/451.9 euro) per square metre (sq m) in the year's first quarter, from 887.57 levs/sq m in the previous three months, the NSI said in a statement. Prices in Sofia went up by 0.8% quarter-on-quarter to 1,465.33 levs/sq m. Bulgaria's port city of Varna was the second most expensive city with prices of 1,439 levs/sq m, down 1.1% from the fourth quarter of 2011. Burgas, a major port city on the Black Sea and a holiday destination, ranked third with prices of 1,158.83 levs/sq m in the three months through March, down by 0.6% on the quarter. The most significant fall in housing prices in the first quarter of 2012, by 4.4% to 602.17 levs/sq m, was registered in the city of Vratsa, in northwestern Bulgaria. The NSI data reflects the prices in concluded apartment sale deals reported by real estate brokers operating in the administrative centres of Bulgaria's 28 regions.
Source: Capital (24.04.2012)

Bulgaria's Budget Gap Shrinks by BGN 622 M in 2011 According to information of the national statistical institute confirmed by the EU pollster Eurostat Bulgaria's budget gap shrank by 622 million levs in 2011. The deficit in the sector of public management reached 1.57 billion levs in 2011, while a year earlier it was 2.19 billion levs. Last year, the budget deficit amounted to 2.1% of the country's GDP. While a year earlier it was 3.1%. The team of finance minister Simeon Djankov is planning to reduce the budget deficit to 1.1 billion levs in 2013. If everything goes well, the state's books will be perfectly balanced by 2015, which is a sign of economic recovery.
Source: Standart (24.04.2012)

Production inflation in Bulgaria continues to grow in March, too. General price index of a manufacturer grows by 3.4 % on an annual base and by 0.8 % monthly. The index measures change in production prices of goods, which are sold not only on the internal market, but also on the external one. The other basic index, which measures changes in prices, but of goods, traded on the local market solely, also goes up, even with a higher rate. It increased by 4.6 % on an annual base and by 0.9 % monthly. Production and distribution of energy and gas is the main engine of the annual production inflation- both total and national. On a monthly base changes are caused by processing industry by far, and mostly by prices in the textile industry. Internal production inflation in March is influenced by textiles and victuals’ prices mostly. Prices in extractive industry go up by 3.6 % on a yearly base, while those in industrial production by 2.7 %; prices in production and distribution of energy and gas increase by 5.9 %. Bigger increase is registered in production of textiles. Without clothes- by 8 %, while at the same time a significant decrease is reported in production of basic metals-by 11.1 %, The decrease in production of products by other non-ferrous mineral products is 0.7 %.
Source: Capital (02.05.2012)

Bulgaria's Business Sentiment Index Rises in April Bulgaria's business sentiment index in April rose by 3.2 percentage points from the previous month, after increasing by 2.3 points in March, the National Statistics Institute (NSI) said on Friday. In April the industrial sub-index rose by 1.8 percentage points on the month as managers changed their assessment of the present situation in the sector from satisfactory to good. They continued to perceive the present production activity as decreased, albeit being somewhat optimistic regarding the sector's development in the next six months, the NSI said in a statement. The sub-index in construction gained 8.7 percentage points from March due to the managers' more favourable assessment of the present business situation and more optimistic expectations regarding its development. In retail the sub-index rose by 2.3 percentage points, and in the services sector the business climate gauge gained 1.5 percentage points reflecting managers' anticipation of a certain improvement in the sector in the following six months. Overall, managers said they do not expect a hike in prices over the next three months, except for those in the services sector, who said they expect a certain increase during the period under review. (SeeNews)
Source: Capital (02.05.2012)

Construction of residential buildings drops, while that of commercial premises grows slightly Housing construction is in a crisis, while the construction of industrial and commercial premises and of hotels registeres a slight recovery, according to the data of the National Statistical Institute. In Q1 2012, commenced buildings declined by 16.8%, compared to the same period of last year. Construction of administrative premises dropped by 34.6%, and that of other types of buildings – by 3.7%. The overall built-up area of residential projects shrank by 17.2% and that of administrative buildings – by 55.4%. A slight growth of 23.5% was registered in the construction for non-residential purposes. In Q1 2012, local authorities issued building permits for the construction of 868 residential buildings with 1,944 flats, of 35 administrative buildings and offices, and 1,014 other types of buildings, showes further the data. Plovdiv is at top of the list for the largest number of issued building permits – 108, followed by Varna - 102, Burgas – 93, and Sofia - 67. At the same time, the construction of 382 residential buildings with 1,262 flats, of 17 offices and of 394 other buildings with a total built-up area of 257,945 sq m has been launched. Compared to Q4 2011, the number of commenced constructions of residential buildings dropped by 40.3% and the flats in them – by 27.5%. A decrease was also registered in the construction of administrative buildings - by 39.3% and of other buildings - by 41.2%.
Source: Class (03.05.2012)

Machine-building and energy are sectors, which show revival after the three-year crisis period, according to the applications of Bulgarian and foreign companies to participate in the International Technical Fair in Plovdiv, which will take place from 24 to 29 September 2012. Companies from these industries are now actively involved in the most prestigious forum of investment goods and technologies in Southeastern Europe, organized by International Fair Plovdiv. Ecology and Water management are the other two sectors that will form strong exposures at Autumn 2012. This follows their impressive presence at last year's International Fair, which passed under the sign of green technologies. It started with deals worth EUR 185 million towards projects for energy saving and recycling. Among a total of 1482 companies from 44 countries, there were 244 new exhibitors and 108 who returned. Visitors came from 16 countries.
Source: expert.bg (04.05.2012)

Economic growth is expected, although minimal Although during the first quarter of the year a slight decline in GDP was observed, on an annual basis as a whole we are expecting a positive economic growth of 1 %, announced yesterday the Chairman of the Center for Economic Development, Georgi Prohasky, who presented the traditional report on the state of the Bulgarian economy. The latest annual data of the National Statistical Institute confirmed that after the GDP decline of 5.5% in 2009, our economic index increased in the last two years by 0.4% and 1.7%. Although the positive growth trend reemerged from the second-third quarter of 2010, it continues to be weak, while decelerating itself at the end of 2011 more than expected up to 0.3% last quarter. In fact, the short-term data for the first 2-3 months of 2012 are not encouraging for the positive overall economic growth for the first quarter. We expect a decline, albeit weak. Due to the uncertain and late recovery of our key external partners and the slow adjustment of our economy to the crisis conditions, the advent of the pre-crisis GDP volume is probably more expected not until the end of 2012, but in 2013. In fact, analysts have never been so divided on the forthcoming economic processes, argued Georgi Prohasky. According to the interim forecast of the European Commission, the recovery of the European economies at the end of 2011 was unexpected. EC provides for the slowdown to continue in the first two quarters of 2012. The restoration of the moderate growth is expected in the second half of the year. For the EU, the forecast of the Commission is reduced to a zero growth for 2012. For Bulgaria, the outlook is also downgraded in comparison with the autumn forecasts of retarding growth up to 1.4%. In the draft of the updated National Reform Programme for 2012-2020, which was published in March, the Ministry of Finance has also lowered its forecast for macroeconomic development of our country up to 1.4% growth for 2012.
Source: Class (04.05.2012)

Three of four Bulgarians consider Bulgaria the most corrupt country in Europe Some 75% of Bulgarian citizens believe that corruption in the country is more widespread than in the other EU member-states, showed data from a survey conducted by Eurobarometer in the European Union. The combat with corruption is one of the main issues on which the countries in Eastern Europe and Bulgaria, in particular, are mostly criticised by the European Union. The attitudes of the residents in this region confirm the criticism on the part of the European community. Greece, Romania and Bulgaria top the EU ranking in terms of the share of their residents, assessing corruption in the respective country as higher than the average for the European community. Only 12% of Bulgaria’s citizens disagree with the position that corruption in our country is more widespread than in the EU member-states as a whole. The assessment of people in Bulgaria, Greece and Romania about the level of corruption in their own country is quite different from that of the population in the European Union as a whole. Only 36% of the EU citizens are generally of the opinion that corruption in their countries is higher than the corruption in the community as a whole. The population in the Netherlands, Denmark and Sweden is least worried about corruption. Over 90% of the people in these EU member-states share the opinion that corruption in their countries is not more widespread than in the European Union as a whole. The residents of countries assessing corruption as higher than in the EU as a whole are mostly inclined to believe that corruption in the European institutions is rare. Some 73% of EU citizens agree that there is corruption in the European institutions. As much as 87% of the Austrians and 85% of the Swedes believe that the EU institutions are not insured against corrupt practices. Against this background, it seems that Bulgaria (together with Poland, Romania and Estonia) is among the countries where people have the greatest confidence in the uprightness of European institutions - only 57% of Bulgarians believe corruption in the EU institutions is possible.
Source: Class (07.05.2012)

Unemployment in Bulgaria in Q1 2012 was 12.9% - National Statistics Institute Unemployment in Bulgaria in the first quarter of 2012 was 12.9 per cent, according to the National Statistics Institute. A total of 422 500 people were jobless in Q1 2012, the statistics said, in a country of 7.3 million. The institute said that in Q1 2012, the economically active population aged 15 to 64 was 3 234 600, representing 65.4 per cent of the population in the same age group. Statistics released by European Union statistics office Eurostat on May 2 2012 said that in Bulgaria, the seasonally-adjusted unemployment rate in January was 12.2 per cent, in February 12.5 per cent and in March 12.6 per cent. Youth unemployment – meaning people aged younger than 25 – in Bulgaria was 31.1 per cent in January, 32.3 per cent in February and 32.8 per cent in March, according to Eurostat. Across the EU, in March 2012 unemployment was 10.2 per cent, Eurostat said. Across the EU, youth unemployment was 22.6 per cent in March 2012.
Source: Capital (07.05.2012)

Bulgarians Tighten Belts Further The Bulgarians tighten the belts further: instead of spending they prefer to save for a rainy day in banks. In March the turnover of the retailers shrunk by about 1.8 percent set against the same period of the last year, the National Statistical Institute announced. This is the tenth consecutive month when this downward trend has been registered. The most significant drop (21.8 percent) has been recorded in the sales of textiles, clothes, shoes and leather products, followed by household appliances and furniture (12.1 percent.) The sales of gas have shrunk by 3.4 percent. Tighter belts, however, are evidently detrimental to people’s health, as the sales of medications have leaped by almost 8.5 percent. There is an upward trend in the sales of computer and communications appliances (4.1 percent), as well as in retail trade of foods, beverages and cigarettes (1.8 percent.)
Source: Standart (09.05.2012)

Retail trade’s turnover grew with 3.9 % just for a month. This is evident by NSI’s data for March 2012, The index is still going down on an annual basis, and as for March the decrease is by 1.8 %. In March, as compared to February, the biggest increase is registered for turnover in retail trade for home appliances, furniture and other consumer goods. In this sector the increase is by 4.6 %. In sale of textiles, clothes, shoes and leather goods NSI reports the second most serious increase equal to 4,3 %. Retail trade in automotive fuels and lubricants as well as shops for foodstuffs, beverages and tobacco are ranked behind. Turnover in catalog and online trade grew on an annual basis by 9,5 %, while that in pharmaceuticals by 8,4 %, as well as in trade with PC and communicational equipment. Preliminary data points growth in Construction and Industry, where indices show increase by 1,8 % and 1 % respectively.
Source: Monitor (09.05.2012)

In the first two months of 2012, Bulgaria's exports to the EU exceeded BGN 3.3 B, decreasing by 8.1% from the same period in 2011. In the period January - February 2012, Bulgaria's imports from EU countries increased by 6.7% on the year to BGN 4.1 B (CIF prices), according to data of the National Statistical Institute (NSI). Two-thirds of Bulgaria's exports to the EU went to five countries – Germany (11.9% decrease from January-February 2011), Italy (7.9% increase), Romania (23.6% decrease), Greece (17.3% decrease) and France (12.6% increase). January and February 2012 were the first two months to bring a decrease after a constant increase in exports in 2011. Exports fell by 7.3% in January and by 8.9% in February, as compared to the same months in 2011. In the period January-February 2012, Bulgaria's foreign trade balance (export FOB - import CIF) with the EU was negative and amounted to BGN 709.4 M. At FOB/FOB prices (after eliminating transport and insurance costs on imports) the trade balance was also negative and amounted to BGN 520 M. According to NSI data published about a month ago, Bulgaria's total exports in the first two months of 2012 came in at BGN 5.7 B, while imports amounted to BGN 6.9 B.
Source: Capital (10.05.2012)

The engine of Bulgaria’s economy stallsExports, considered the main engine of Bulgaria’s economic growth, stalled after the crisis. According to preliminary data of the National Statistical Institute (NSI) for the first two months of 2012, exports dropped by 6%. Our country’s exports to the European Union decreased by 8.1% and those to third countries - by 2.6%. The decline in January alone was 10% and in February exports fell by 1.6%. The aggregate increase in exports for 2011 stood at almost 30% on an annual basis. At the beginning of 2012, however, Bulgarian exporters lost close to BGN 300 mln – BGN 237 mln from export orders from Europe and BGN 60 mln from the rest of the world. In the first two months of 2012, Bulgaria’s exports of goods and services to European partners amounted to BGN 3.392 bn in absolute value, compared to BGN 3.629 bn a year earlier, and those to non-EU countries totaled BGN 2.3 bn, down from BGN 2.362 bn at the beginning of 2011. The opposite trend was observed in imports. Just like at the beginning of last year, imports rose in January and February 2012, albeit at a more modest pace. They grew by 7.4% for the first two months to a total of BGN 6.625 bn. Thus, the deficit in Bulgaria’s trade balance grew three-fold - from BGN 420.4 mln at the beginning of 2011 to BGN 1.262 bn now (BGN 709.4 mln from the EU and BGN 553.2 mln from third countries).
Source: Class (10.05.2012)

Bulgaria's Export for EU Slumps by 8.1% Bulgaria's export for the EU has slumped by 8.1% y/y at the beginning of 2012 and it now amounts to about 3.3 billion levs, the national statistical institute said. Romania, Greece, Germany, Italy and France account for 66% of Bulgaria's European export. At the same time, the export from the EU for the first two months of the year has increased by 6.7% y/y up to 2.1 billion levs. As a result, the foreign trade gap has reached 709 million levs against 154 million levs deficit for the first two months of 2011.
Source: Standart (10.05.2012)

2311 new homes went on the market In NSI’s preliminary data number of commissioned newly constructed buildings in the first quarter of 2012 is 601. If compared to the corresponding quarter of 2011, their number remains unchanged. Newly constructed homes in them are 2 311, or by 25.7% less. The biggest number of buildings and homes were commissioned in Varna region -98 buildings with 448 homes in them, followed by Bourgas region – with 86 buildings and 527 homes and Sofia with 52 buildings and 231 homes. Total useful area in all newly constructed homes in the first three months of 2012 is 201.5 thousand square meters, or by 16.7 % less as compared to the same quarter of 2011. Living area is decreasing by 16.2 % to 128.8 thousand square meters.
Source: profit.bg (10.05.2012)

Bulgaria Jobless Rate Edges down to 11.4% in April Bulgaria's April jobless rate inched down to 11.4% from 11.5% a month earlier, official data from the government's Employment Agency showed on Thursday. A total of 373,524 unemployed were registered with unemployment offices at the end of April, down by 3,053 people from the previous month, the agency said in a statement. The number of people who found a job last month totalled 24,727, up by 5,558 from March. Job vacancies for seasonal employment stood at 14,633 last month, as some 10,656 of them were offered by the private sector. (SeeNews)
Source: Capital (11.05.2012)

Bulgarians are increasingly pessimistic about the economic development April brought improvement in the overall expectations about the family finances of our population, but nevertheless, people remain pessimistic about the positive economic development over the next 12 months, according to data of the National Statistical Institute. Consumers' opinion on the development of the general economic situation over the past twelve months and the overall expectations for the next year have deteriorated since January. The most optimistic estimates were registered at the beginning of 2011, while the most pessimistic ones were those in the early 2009. Throughout the entire past year, the expectations about a favourable economic situation in the next period have been increasingly deteriorating. Regarding the unemployment, the prevailing opinion is about forthcoming staff redundancies, but at a more moderate pace. In its turn, the macroeconomic analysis of Raiffeisenbank reported the highest unemployment rate since the early 2004 - some 13.5% in February and March. According to the experts, the labor market remains one of the most significant risk factors which endangers the sustainable economic recovery. The good news is that according to the NSI data, the assessment of family budgets increased by 1 point, compared with January 2012, whereas the improvement concerns the rural population to a great extent. The index of households in small settlements rose by 6.5 points. People still refrain from buying a car or investing in the construction of a house or villa, although the attitudes towards the purchase of durable goods are improving. Meanwhile, NSI reported yesterday that for the first three months of the year, the volume of Bulgarian exports reached BGN 9 bln and it marked actually a decrease of 3.3% on an annual basis. However, the trend of decline diminished since the slump of 6% was twice as large for the first two months. Our imports for the quarter stood at about BGN 11.2 bln or 8.9% higher over the same period of 2011. Thus, the foreign trade balance of BGN 2.11 bln remains negative. "For the entire 2012, a strong effect on GDP by the amount of Bulgarian imports cannot be expected since a tangible recovery in domestic demand is not projected," commented the Chief Economist at Raiffeisenbank, Kaloyan Ganev.
Source: Class (11.05.2012)

Every third Bulgarian willing to change his/her occupation rather than one's place of residence in case of staff layoffs 35% of employed Bulgarians admitted that, if unemployed, they will seek a different job from their current one, but at the same location, according to data of the Eurobarometer survey conducted in EU member-states. The general situation of labour markets both in the EU and in our country continues to be unstable. Some 15% of the employed residents of the European Union feel that there is a risk of losing their jobs. Our country ranks 5th in the European Union in terms of its share of the working population which believe there is a danger of remaining unemployed. A bit over 27% of employees in our country assessed their workplace as uncertain. Greece, Slovakia, Hungary and Spain outrank Bulgaria in terms of this index. Almost half of Europeans as a whole stated that they would apply for the same job (in terms of specialisation and qualifications) and at the same location as their present job but with a different employer. Slightly over a third of Europeans stated that it would be most realistic to find a new job if applying for a position in their field but not at another location. Overall 21% of EU citizens stated they prefer to maintain their residence place rather than change their occupation. Bulgaria ranks first in the European Union in terms of its share of the population willing to change their profession rather than their residence place. Although 54% of Bulgarians hope to be able to find a similar job at the same location, another 35% of the employed stated that they may be forced to compromise with their professional experience and skills if they want to maintain their place of residence.
Source: Class (14.05.2012)

Cost of living up by 1.6% this year The cost of living rose by 1.6% in the period from the beginning of 2012 until April, registering a 0.2% increase in a single month and a 1.7% increase, compared to April 2011, showed data of the National Statistical Institute. The annual inflation rate for May 2011 - April 2012, compared to the same period last year, was 3.2%. Prices of clothing and footwear registered the biggest increase in April – by 4.2% on an annual basis. Housing prices, transport fares, healthcare and education costs rose by less than 1%, while foods, soft and strong drinks, tobacco products, furniture, entertainment, hotels and restaurants were 0.1% cheaper. Prices of medicines and other pharmaceutical products increased, while those of dental services remained at the level of the previous month. Costs for healthcare increased by 0.1% and transport fares - by 0.9%. At the same time, prices of liquid and gaseous fuels for household purposes declined, by 0.8% and 0.4%, respectively. Holiday and travel services became 6.8% cheaper, reported further the statistics. The money needed for entertainment and cultural recreation decreased by 1.6%, while the costs for education rose by 0.1%. According to the Harmonised Index of Consumer Prices (HICP) used by Eurostat as measure for comparing the inflation rates in the EU, in April the monthly inflation in Bulgaria was 0.2% and the annual inflation - 2%. Prices of foods and soft drinks decreased by 0.1%, compared to March, alcoholic beverages and tobacco products - by 0.1%, while these of clothing and footwear increased by 4.2%. According to preliminary estimates of Eurostat, the annual inflation in the Eurozone was 2.6% in April 2012, compared to 2.7% in the previous four months. If these forecasts are confirmed by official figures, April will be the 17th consecutive month in which the index of inflation exceeds the 2% ceiling set in the EU.
Source: Class (15.05.2012)

Prices in Bulgaria Go up by 1.7% The inflation rate in Bulgaria for April is only 0.2%, the National Statistical Institute (NSI) reporter. For a year the rise in price is by 1.7%. This is the lowest annual inflation for nearly 2 years, the NSI data shows. The reason for that is the low consumption rate which led to a decrease of a series of goods in April. This situation makes bank deposits very profitable. For each 100 levs on deposits, the profit is about 5 levs for a year. The prices of foods, alcohol and home furniture decreased slightly in April. At the same time the prices of clothes and shoes went up by 4.2%.
Source: Standart (15.05.2012)

Zero economic growth both in Europe and in Bulgaria In the first quarter of 2012 Bulgaria’s Gross Domestic Produc recorded a zero growth, compared to the last quarter of 2011, but a modest growth of 0.5% was established on an annual basis. The data is from the flash estimates of the National Statistical Institute, which provided the earliest picture of the economy after the end of the reporting period. The official quarterly figures of the GDP are due to be released on 6 June. In the fourth quarter of 2011, growth slowed to just 0.3% of GDP, on quarterly basis, but it increased by 1.6% on an annual basis. The figures recorded in the EU were similar. According to Eurostat, the EU economy marked a zero growth, compared to the last quarter of 2011, but it increased by just 0.1% over the same period last year. In the period January-March, Bulgaria produced goods and services amounting to BGN 15.661 bn. Gross Value Added amounted to BGN 13.358 bn, a drop of 0.4% on quarterly basis and a decline of 0.3% year-on-year. This means that production declined both on quarterly and on an annual basis. Growth was reported under the "adjustments" item, which measures the appreciation of a product during its movement from the supply chain to the end user. It is just this appreciation, which creates value in the retail companies, which also forms GDP. The indirect taxes such as VAT and excise duties contribute to this item as well. The largest share in the Gross Value Added was formed in the services sector (63.7%), followed by the industry (32.3%) and the agriculture (4%) branches. Final consumption accounted for 86.9% of the amount, while 21.4% went to the fixed capital. Final consumption grew by 0.2% on quarterly basis. Exports of goods and services declined by 4.6% and imports of goods and services - by 2.4%. The registered positive economic result on an annual basis was mainly due to the final consumption, which increased by 2.2%. Within a year, exports of goods and services dropped by 1.9%, and imports of goods and services - by 1.6%.
Source: Class (16.05.2012)

BG Economy Steps on the Breaks The Bulgarian economy has stepped on the breaks and in practice the business in this country is at a standstill. During the first trimester of 2012 the GDP marks a 0.5 percent growth as compared with the same period of the last year. However, set against the previous trimester the growth is zero, shows the flash estimate of the National Statistical Institute (NSI). This is the fourth trimester of the economic stagnation. Bulgaria, though, is doing better as compared to the other EU members. Several countries, such as Czech Republic, Spain, Italy, Cyprus, Holland, Portugal, Romania and the Great Britain have officially declared they are in a state of recession as the economy has been skidding for two trimesters in a row. For the first trimester of 2012, Bulgaria’s GDP is 15,661 billion levs, the NSI reported. The GDP grows by 0.5% compared to the same period of 2011. An increase has been registered in the agrarian and industrial sectors respectively by 12,4% and 2%. The service sector, which takes up the biggest share in Bulgaria’s economy registers a drop of 0.8%. The economic growth is due to the final consumption which grows by 2.2%. Investments in Bulgaria register a drop of 3.4%, the country’s export shrinks by 1.9%.
Source: Standart (16.05.2012)

Expenditures of Bulgarian households increase by 14.7% in Q1. ncomes up by 10%. The expenditures of Bulgarian households increased by 14.7% for the first quarter of the year compared to the same period last year, while our incomes rose by only 10.6% for the same period, showed the data of the National Statistics Institute (NSI). At the begging of this year, the total cost per person in a household reached BGN 888 in value, while the total income per person was BGN 960. Thus Bulgarian citizens are left with a net income of BGN 72 per quarter, showed the statistics. It proved out that more than half of the outlays of Bulgarians referred to food and housing expenses (energy, fuel and water consumption, etc.). The funds spent on the purchase of food and beverages increased by 5.4 % in absolute values. As a result, for the first quarter of 2012, they reached BGN 299 per person in a household. The funds allocated to overhead expenses (on water, electricity and heating consumption as well as on the furniture purchase and housing maintenance) increased from BGN 140 for the same period of 2011 up to BGN 170 per household member on an average at the beginning of 2012. Healthcare costs also increased from BGN 45 to BGN 54, while the transport and communications expenses rose by 13.3% and reached BGN 92 per person on an average. Bulgarian citizens also spent more money on alcohol and cigarettes - up by 22.4 % to BGN 39 per person. We also set aside BGN 23 to buy shoes and clothing. Besides, the funds deposited with savings bank accounts increased by a bit over BGN 9 per person early last year up to over BGN 14 in 2012.
Source: Class (17.05.2012)

Turnovers in the IT industry, travel agency and tour operator activities, security and investigation activities and office administration activities registered annual increases in the first three months of 2012, according to information of the National Statistical Institute (NSI). According to NSI data about turnover indices in services in Q1, 2012, the transport sector registered an annual decrease of over 10%. Turnover indices in the advertising and market research sector and in architectural and engineering activities also posted annual declines. According to preliminary data for Q1 2012, the total turnover index for the "Transportation, storage and post" sector, calculated on the basis of seasonally adjusted data, was 4.4% higher than the previous quarter. The upward trend was registered due to the increases in land transportation activities and in warehousing and transportation support activities by 6.8% and 5.2% from the previous quarter. At the same time, the water transport segment registered a decrease of 7.3%, air transport declined by 1.4% and postal and courier activities fell by 6.7%. The total turnover index in the „Information and communication" sector decreased by 0.7% quarter on quarter.
Source: Capital (22.05.2012)

Bulgaria among the first in terms of tax burden decrease Bulgaria ranks among the best performers both in terms of lower taxes and a decline in the tax burden, highlights the Eurostat report. In 2010, taxes collected in Bulgaria generated 27.4 % of the gross domestic product of our country. In 2009, the share of these revenues as a percentage of the economic output was 29%. As a result, Bulgaria ranked third in the EU in terms of largest decline in the tax burden. We are outpaced by Hungary, where the percentage decreased from 40.1% to 37.7% and by Lithuania, where the rate slumped from 29.2% to 27.1%. There is also a serious decrease in Estonia - from 35.7% to 34.2%, reported also the European statistics. For the same period, the largest jump in the tax burden was indicated by Spain where the tax collections generated 31.9 % of GDP compared with 30.7% in 2009. Besides, the UK percentage jumped from 34.8 % to 35.6 %, while in Latvia, it leapt from 26.7% to 27.3%. In 2010, the frontrunner for the highest share of tax revenue generated by the economic output was Denmark where nearly half of GDP or 47.6 % was generated by the collection of taxes. Based on this indicator, Bulgaria ranked fourth, outpaced only by Romania - by 27.2% and Latvia - by 27.3%. Sweden also reported a high 45.8% share of tax revenues infused to the state Treasury. The average tax burden in the EU reached 38.4% in 2010 and remained unchanged year-on-year, while in the Euro area, there is a slightly decrease from 39% to 38.9% compared to 2009. There is a much wider percentage range in Europe in terms of property taxes. In the Czech Republic, Estonia and Slovakia, the tax revenues infused in the state Treasury reached barely 0.4% of GDP, while in Britain the tax collections generated 4.2 % of GDP and 3.4% in France along with 3.1% in Belgium. In our country, in 2010 as a result of the collection of similar levies, a total of BGN 187 mln were poured into the Treasury or 0.5% of the economic output for a year. Our country is among the best performers in terms of the the lowest income and corporate tax level this year. In Bulgaria, our income tax was 10%, or nearly 4 times lower the EU average of 38% and it is over 43% for the Eurozone. The highest income tax was reported by Sweden (56.6%), Denmark (55.4%), Belgium (53.7%) as well as by the Netherlands and Spain (52%), Austria and the UK (50%), while the lowest income tax rate of 15% was registered by the Czech Republic and Lithuania, indicated also the Eurostat data.
Source: Class (22.05.2012)

NSI reports an increase in visits to cinemas and theatres “Visits to movie and theatre performances in the country grew substantially in 2011, compared to 2010,” announced the National Statistical Institute (NSI) yesterday. Shows in cinemas have increased by 23.1%, and visitors – by 11.8% for a year. The proceeds of tickets have increased by about BGN 2.7 mln. Statisticians reported an increase in the theatre audience as well. In 2011, 12,864 performances took place in the 73 theatres across the country. These were attended by 1.93 million people. Compared to 2010, performances were up by 12.4%, while visits grew by 15.1%. The average number of visitors to a theatre increased from 23,000 to 26,000 spectators, and the number of spectators per performance - from 147 to 150 people. Dramatic theatres are most numerous in our country (40). They staged a total of 5,929 performances, but their share in the total performances decreased by 3.7%. In the meantime, puppet and drama - puppet performances were up by 4.4% and 0.7% respectively. In 2011, a total of 50 music formations were active in the county: six philharmonic orchestras, 27 professional ensembles for folk songs and dances and 17 orchestra. Their concerts dropped by 23.2%, and the visits – by 20.7%. Companies and associations organized 27 recital performances, attended by 1,520 spectators. A total of 705 concerts took place, which attracted some 231,000 music fans. Pop, rock and folk concerts gathered a total of 75,500 visitors. As a result of the construction of new modern cinemas, equipped with modern techniques at the end of 2011 there were 43 cinemas in the country, with a total 150 cinema screens, showed the NSI data. The average annual attendance per screen was about 31, 000 spectators.
Source: Class (22.05.2012)

Academy of Sciences predicts a 1.3 % economic growth for 2012 This year, the expected economic growth will be minimal and approximately 1.3%, predicted yesterday scientists from the Economic Research Institute with BAS (Bulgarian Academy of Sciences). They presented their annual report dubbed "Economic Development and Policy of Bulgaria: Estimates and Expectations." The BAS forecast is closer to the estimates on the the expected growth of 1.4%, which was announced by Deputy Minister of Finace, Boryana Pencheva. Recently, the Head of the Center for Economic Development, Georgi Prohaski also predicted an increase of 1%. The Bulgarian National Bank and the IMF, however, are much more cautious in their projections for our economy. They preditct respectively 0.7 % and 0.8 % growth. The European Commission, in its turn, revised recently its outlook up to only 0.5 %. It is not excluded that over the next two years, a greater GDP growth be observed, but it will advance at a relatively slow pace, commented Victor Yotsov. It is wrong to think that increased exports would play the role of locomotive, which will pull out Bulgarian economy from the economic crisis. This cannot happen because the exports structure is deformed - we rely on export, which has little added value. Consumption is also shrunk. Thus, Yotsov commented on the reasons for the expected low growth. According to him, Bulgaria is statistically in recession, but there is economic uncertainty in the business environment, which is complemented by the dire financial situation of Greece. As a result of the economic crisis and the uncertain economic environment, the profitability of Bulgarian enterprises slumped by 54-85%, while their total intercompany indebtedness is rapidly increasing. Some 90% of companies with liquidity problems are micro-enterprises with a stuff of up to 9 employees. Bulgaria is not facing the danger of large budget deficit, but the irregular payments to the business sector as well as the decline in investments and the postponement of reforms in key sectors worsen the overall business environment, according to the BAS analysis.
Source: Class (22.05.2012)

Over 308,000 Bulgarians Remained Jobless in Crisis Over 308,000 Bulgarians have lost their jobs since the onset of the economic crisis. By end-March the employed in this country amounted to 2.1 million, which is 308,000 fewer people as compared with March 2009, when the global economic meltdown was felt in Bulgaria. Officially registered unemployment has grown by 0.7 percentage points and now accounts for 12.9 percent, show the data of the National Statistical Institute. The jobless registered in employment agencies number 421,4 thousand. Another 250 thousand have given up on seeking a job losing all hope to find anything. The long-term unemployed (over one year) account for 53.8 percent of all people without a job, as their number has soared by 7.9 percent set against the last year.
Source: Standart (23.05.2012)

Bulgaria Has EU's Highest Natural Gas Prices in PPS Natural gas prices in purchasing power standards (PPS) in Bulgaria are record-high, compared to the other EU countries, according to Eurostat data for the period between the second half of 2010 and the second half of 2011. According to the statistical office of the European Union, the average price of natural gas in Bulgaria was EUR 10.1 per 100 kWh. Bulgaria is followed by Hungary (EUR 9.7) and Slovenia (EUR 9.6). The lowest prices of natural gas in purchasing power standards were registered in Luxembourg (EUR 4.8 per 100 kWh), the UK (EUR 5.2) and Romania (EUR 5.4). As regards average prices of natural gas, the commodity was most affordable in Romania (EUR 2.8 per 100 kWh), Estonia (EUR 4.4), Latvia (EUR 4.6) and Bulgaria (EUR 4.7). The highest prices of natural gas were registered in Sweden (EUR 11.7 per 100 kWh), Denmark (EUR 10.9) AND Italy (EUR 8.8). The EU27 average was EUR 6.4 per 100 kWh. In the second half of 2011, natural gas prices in the Eurozone added an average 12.6%. Romania registered a price decrease of 0.1%, while the UK recorded an increase of 27% from the second half of 2010. As regards electricity, the lowest average prices were registered in Bulgaria (EUR 8.7 per 100 kWh), Estonia (EUR 10.4) and Romania (EUR 10.9). The highest rates were recorded in Denmark (EUR 29.8 per 100 kWh), Germany (EUR 25.3) and Cyprus (EUR 24.1). The EU27 average was EUR 18.4 per 100 kWh, up by 6.3% in the second half of 2011. The lowest prices of electricity in purchasing power standards were in Finland (EUR 11.4 per 100 kWh), France (EUR 12.6) and Greece (EUR 13.5). The highest prices of electricity in PPS were in Cyprus (EUR 26.7 per 100 kWh), Hungary (EUR 26.4) and Slovakia (EUE 24.9).
Source: Dnevnik (28.05.2012)

Business climate improves due to trade optimism Business climate in Bulgaria is improving in May, mainly due to the recovery in retail trade, National Statistical Institute data showed. The overall growth index rose by 2.8 points to the highest in this particular sector – 10.3 points. The growth index in construction is 1 and in services - 1.8 points. During the first two months of the year, the business climate registered a seasonal decline of 0.7 points in January and 2.4 points in February. In March, the index rose by 2.3 points and at the end of April - by 3.2 points. The high growth in May in the retail trade is mainly due to managers improved assessments and expectations of the state of enterprises. Increased optimism can be seen in their expectations regarding sales and orders to suppliers for the next three months, NSI reported. The main factors impeding operations in the sector, however, are still the uncertain economic environment and insufficient demand. In May, the negative impact of competition among retail companies increased. Price expectations for the next three months are for an increase. The business climate in construction industry rose by 1 point and managers in the sector count on an improvement of the situation during the active building and on more new orders. Here again, the uncertain economic environment, financial problems, insufficient demand and competition in the sector have an adverse impact.
Source: Class (29.05.2012)

IT business wants a ministry of its own The IT business wants its own ministry which would assume leadership in the establishment and management of the e-government. This became clear during the national forum for business discussions and forecasts BizTech, held today. According to the companies in the sector, all IT systems will be fully centralised and easier to control in this way. The e-government should have a management and a supervisory board, as well as a good project management, experts added. Currently, only 19 people from the administration are responsible for the e-government and have been assigned to draft a policy for it. “Professionals from other ministries have also been involved to help,” said Valery Borissov, Deputy Minister of Transport, IT and Communications. He promised results by the end of this year and much more services to be accessible to citizens and businesses. “The success of this project requires political will and money and we have both,” stated Borissov. He admitted that currently, the project was not progressing at the necessary pace, but hard work should be done on linking 30 registers in a system and introducing some of the planned 50 various electronic services to municipalities. The much criticised e-government portal (http://www.egov.bg) will also be changed. In terms of computer literacy and skills for the use of Internet by Bulgarians, our country ranks among the last in the EU. According to Eurostat data for 2011, less than half of households in Bulgaria have access to the global network, compared to an average of 73% in Europe.
Source: Class (29.05.2012)

Factory prices speed their increase in April, NSI's data shows. The rate of increase on an annual basis is3.7 %, as compared to 3.4 % in March. Production prices are indicative for the sector, as they reflect demand and pressure on companies from prices of basic raw materials and energy products. There is a considerable increase in production of textiles and manufactured products, without clothes-by 7.9 %. Products from processed leather have gone up by 7.2 %, while prices of clothes have increased five times -by 1.5 %. There is a serious increase in tobacco production by 7%. Only two categories of products have registered decrease in comparison with the previous month-in metallurgy- by 13.7 % and in production of products by minerals by 1.1 %.
Source: Capital (31.05.2012)

Number of doctors in Bulgaria up by 414 people, that of dentists – by 300 At the end of last year, the number of doctors in Bulgaria increased by 414 people and that of dentists – by 300, showed data of the National Statistical Institute (NSI). Statisticians counted a total of 28,411 practising physicians and 6,655 dentists. The highest share among doctors is that of GPs (16.5%), surgeons and internists (a total of 10.4%). Medical healthcare professionals total 47,427, including 31,609 nurses. The availability of doctors in the country is 38.8 per 10,000 people of the population and that of dentists - 9.1 per 10,000 people, reported NSI. However, the index of doctors’ availability in different areas varies between 25.6 and 50.2 per 10,000 people, statisticians explained. It is the highest in regions with medical universities and university hospitals. According to this indicator, Pleven ranks first with 50.2 physicians per 10,000 people, followed by Sofia-city with 45.1 and Varna with 45. The level of this index is the lowest in the towns of Razgrad (25.6), Silistra (26.3), Pernik (26.5) and Kardjali (26.6). The availability of GPs is 6.4 per 10,000 people. There is a disproportion in the availability of GPs round the country. For instance, there are 8.2 GPs per 10,000 people in the region of Pleven, while in Kardjali and Razgrad the index is 4.4. A total of 15,264 doctors, 82 dentists and 28,840 medical healthcare professionals work in hospitals, showed NSI’s statistics. Some 10,589 doctors and 6,239 dentists are employed under permanent labour contracts in establishments for outpatient medical aid, while 2,538 physicians and 334 dentists work in other medical establishments.
Source: Class (31.05.2012)

According to NSI data for early 2012, our economy continues to drag along the crisis bottom Bulgaria's economy continues to drag along the crisis bottom. For the first quarter of this year, Bulgaria produced goods and services worth BGN 15.705 bln or overall BGN 2,145.9 per person. Recalculated in dollars, Bulgaria manufactured goods worth $10.5 bln or ˆ8.03 bln. Compared to the last quarter of 2011, Bulgaria's GDP maintained its level, while the gross value added decreased by 0.3%, reported the revised data of the NSI (National Statistical Institute). Compared to the express estimates, no change was registered in terms of the output of our country. Final consumption declined by 0.5% from the end of 2011, while the rate of exports and imports of goods and services decreased by 2.9 and 0.8%, respectively. The total gross value added (GVA) generated by the sectors of the national economy in the first quarter amounted to BGN 13.37 bln calculated at current prices. On an annual basis, in the beginning of 2012, Bulgaria's economic growth reached 0.5%, while the total gross added value decreased by 0.2 % and overall final consumption reported a decline of 2.1%. The rate of imports of goods and services retained its level, compared to the corresponding quarter of the previous year, while the exports level slumped by 0.1 %. The good news is that labour productivity increased slightly. For January-March, based on preliminary data, the GDP per employee increased by 2.6%, compared to the same quarter last year. The total number of those employed in the economy reached 3.213 million people. The total amount of men-hours stood at 1.31 billion. In contrast to the first quarter of 2011, the number of employees decreased by 1.6%, while 1.5% less men-hours were worked. The employment structure, in terms of economic activities in the first quarter of 2011 and 2012, showed an increase in the relative share of those employed in the service sector, indicated NSI statistics.
Source: Class (07.06.2012)

Bulgaria ranks second among the European Union Member States by the production of electric energy with a 7.5% increase. The number one spot is taken by Greece with 12.2%. Poland (3.1%), Slovakia (2.3%) and the Czech Republic (2%) also register an increase. Bulgaria's gross production of electricity in April 2012 is 3 560 GWh, while the net one is 3 231, according to data from the National Statistics Institute, NSI. Import of electricity in April is about 100 GWh, while export - 800 GWh. NSI registers a 2 563 GWh net consumption of electric energy in April. The share of the renewable energy sources in the gross end-consumption of electricity is about 14% annually. After a significant increase in electric production in the EU in 2010 - by 4.5%, there has been a reduction of about 0.6% in 2011, data from Eurostat, the statistical office of the EU, reveals. The electricity generated by nuclear power plants and its share stayed stable between 2010 and 2011.The largest share of electricity generated by nuclear in the 14 EU Member States that have nuclear facilities to produce electricity can be found in France (78.0 %), followed by Slovakia (55.3 %), Belgium (54 %), Hungary (43.5 %), Sweden (39.6 %) and Slovenia (39.5 %). Germany that has decided to close down its nuclear power plants during the next decade has a share of 17.7 %. In 2011, the aggregated EU-27 imports and exports of electricity are nearly identical. When looking at supply statistics at national level, the largest increases could be observed in Greece (+6.3 %), Slovenia (+3.3 %) and Lithuania (+2.8 %). In Turkey, the supply increased by 9 % compared to 2010. The largest decreases in supply figures were observed in Cyprus (-6.7 %), France (-6.1 %), Estonia (-5.6 %), Sweden (-5.4 %), Portugal (-4.7%) and Belgium (-4.6 %).
Source: Dnevnik (07.06.2012)

Construction goes back to increase NSI’s preliminary data reports that index of construction production in Construction sector in April, calculated on seasonally refined data, has gone up by 0.2%, as comapred to the previous month. They show an increase by 4 % in construction production in April 2012, as compared to the same month of 2011. Production of civil/engineering construction has increased by 0.3 %, while that of buildings by 0.2 %. On an annual basis increase in construction production in April 2012 is defined mainly by positive pace in civil/engineering construction, where growth is by 9.2 %. Construction of buildings has increased by 0.1 %.
Source: profit.bg (07.06.2012)

Trade frozen, industry is on the rise In April, the turnover in retail trade maintained its level from the previous month, while industrial production increased by 1.5% and the construction output was up by 0.2%, compared to March, showed preliminary data of NSI for the fourth month of the year. In April, retail trade in household appliances, furniture and other household goods was most active, recording a growth of 1.9%, compared to March. Trade in pharmaceutical goods, cosmetics and toiletries increased by 0.9%. A slight increase of 0.4% was also noticed in the retail sales of food, beverages and tobacco products, of textiles, clothing, footwear and leather goods, and of IT products. In April, in industry, the highest jump was recorded in the distribution of electricity, heating energy and gas - of 6.0%, and in the processing industry- of 1.4%, compared to March. The mining industry recorded a decrease of 6.7%. In the construction branch, the production of civil engineering construction increased by 0.3% and the construction of buildings - by 0.2%. On a monthly basis, however, the picture is somewhat different. Retail trade was down by 0.3%, compared to April 2011, the index of industrial production registered a growth of 0.3% and the construction branch recorded the most substantial increase of 4%. In April 2012, the turnover in retail trade via mail, phone or Internet orders increased by 12.5%, and it was up in the retail trade of pharmaceutical and medical goods - by 8.5% on a monthly basis. A decline was recorded in the turnover of textiles, clothing, and footwear and leather goods of 21.1%. An increase was recorded in the industrial output of the processing industry- of 4.2% on an annual basis, while a decline was noticed in the production and distribution of electricity, heating energy and gas - of 11.9%, and in the mining industry - of 5.1% . A substantial growth was recorded in the production of investment goods - of 10.2% and in the production of intermediate goods - of 4.3%, while the production of energy products was down by 10.1%, showed NSI statistics. In April 2012, the increase in construction output was determined primarily by the growth in civil engineering construction, which increased by 9.2%, and by the rise in the construction of buildings of 0.1% on a monthly basis.
Source: Class (08.06.2012)

According to Eurostat data, Bulgaria ranks second in the EU in terms of growth in electricity production According to Eurostat data, Bulgaria occupies a leading position in the EU in terms of electricity production in 2011, with a growth of 7.5%. The information is based on data from the national statistics. Only Greece is ahead of us with a growth of 12.2%. In April 2012, gross and net electricity production in the country stood at 3,560 GWh and 3,231 GWh, according to NSI data, released on Thursday. Imports of electricity amounted to 100 GWh and exports - to about 800 GWh. NSI reported that, in April, domestic net consumption of electricity was 2,563 GWh. The share of renewable energy sources in final gross electricity consumption was about 14% per annum. After a considerable increase in electricity production in 2010 of 4.5%, in 2011, the electricity generated in the EU dropped by around 0.5% on an annual basis, showed recent Eurostat data. The share of electricity generated by nuclear power plants in the EU has remained stable and is about 28% of the total production of electricity. Photovoltaic electricity production has increased by 58.9% in the EU, according to Eurostat data. The largest growth of electricity production from renewable energy sources was reported in Norway - around 97%, Austria – 60%, Lithuania – 50%. Bulgaria is in the middle of this ranking with about 12-14%.
Source: Class (08.06.2012)

Exports are stalled, imports jump by nearly 10% Exports, which were the main engine of the economy in the years after the crisis of 2008, have been stalled. This fact is confirmed by preliminary data of the National Statistical Institute (NSI) published on the website of the administration. In the first four months of 2012, goods worth BGN 12.291 bn were exported, recording a decline of 1.7% over the same period last year. In April, total exports stood at BGN 3.2 bn, marking an increase of 2.5% over the same month last year. At the same time, imports jumped by 9.8% in the first four months of 2012 to BGN 15.4 bn. In April alone, these increased by 11.2% on a monthly basis to BGN 4.2 bn. Thus, our foreign trade balance remained negative and swelled to BGN 3.125 bn, or BGN 1.592 bn more, compared to the period January - April 2011. After eliminating the costs of transport and insurance on imports, the balance for the period remained negative and amounted to BGN 2.376 bn. In April alone, it was BGN 991.1 or BGN -773.3 mln after subtracting insurance costs. Since the beginning of the year, exports dropped most dramatically in January, on a monthly basis, when these decreased by 10%. In February, the decline was reduced to 1.6% and, in March, it turned into a growth of 1.9%. In April, total exports of the country rose by 2.5%, compared to April 2011. Imports from the EU and third countries recorded sustainable growth of double-digit figures this year. In the period January - April 2012, Bulgaria’s exports to third countries decreased by 2%, compared to the corresponding period of the previous year and amounted to BGN 4.9 bn.
Source: Class (12.06.2012)

Monthly inflation for May 2012, ascompared to April 2012 is minus 0.1%. Inflation form the start of the year (May 2012, compared to December 2011) is 1.6%, while annual inflation for May 2012, in comparison to May 2011 is 1.7%. This is observed by NSI’s data. Average annual inflation for the period June 2011-May 2012, as compared to June 2010-May 2011 is 2.9%.
Source: Trud (13.06.2012)

NCPOR: The interest of Bulgarians in the formation of new parties decreases There is a significant decrease in the number of Bulgarians who are willing to vote for new political entities, reported the National Centre for Public Opinion Research (NCPOR) on Tuesday. According to NCPOR, for April they constituted 31%, while for May – they reached only 15%. This means either that citizens' interest in new parties is reduced or that it is already somewhat satisfied, explained sociologists. Mainly people of active working age tend to vote for such formations, as well as highly-educated residents of Sofia and district towns. The new parties are approved mainly by citizens describing their political views as centrist. However, right-centrist voters welcome new political formations more than left-centrist voters. This, according to NCPOR, is due the process of splitting in the right-wing and in nationalist fractions. The new parties fail to attract politically apathetic Bulgarians, read the survey, according to which, only 18% of non-voters would cast their ballot for a new political entity. The supporters of the new political formation "Bulgaria of the Citizens" formed by Meglena Kuneva, regarded equally GERB (Citizens for European Development of Bulgaria) and BSP (Bulgarian Socialist Party) as potential political partners, reported NCPOR. On the other hand, two-thirds of Bulgarians are not convinced of the need for the ruling party GERB to form a partnership with another political formation, according to the same survey conducted between May 23 and 30. A year before the regular parliamentary elections, there is no sociological agency or analyst to question the leadership of GERB as a political force in Bulgaria, read survey.
Source: Class (13.06.2012)

Bulgaria's unemployment rate dropped to 11% in May 2012 from 11.4% the previous month, according to the country's Employment Agency. Bulgaria's employment offices listed a total of 360 114 unemployed persons in April 2012, 13 410 fewer than a month earlier. A total of 24 352 people found jobs over the month, a 4 213 increase year on year. In May, more jobs became available in manufacturing, tourism and employment and programmes funded by the European Union and state budget took off. The largest number of new jobs in Bulgaria in April 2012 was created by the processing industry – 3 759, followed by trade – 2 158, hotel and restaurant business – 1 608, agriculture – 1 335, and transport – 850.
Source: Capital (14.06.2012)

A total of 100,000 Bulgarians work in EU member-states About 0.1% of the total population of Bulgaria, or approximately 100,000 people, earn their living within the EU, showed official data of Eurostat. Nearly 30% of the Bulgarians, who emigrated to the EU, settled in Spain, 15% - in Great Britain and 13% - in Germany. According to unofficial data, the number of Bulgarians who find seasonal work in the EU has reached half a mln people per year. About 12.5 mln Europeans are citizens of an EU member state, but live and work in another, announced experts from Eurostat. In absolute terms, the highest number of citizens of another country, who live in an EU member state, has been observed in Germany - more than 7 mln people. About 6 mln foreigners live and work in Spain, about 5 mln - in the UK, about 4 mln - in Italy and France. In relative terms, the EU country, with the largest number of people of foreign origin is Luxembourg - nearly 86% of its population is composed of citizens of other countries. Within the 27 EU countries, Romanians who try to make their living in another member EU state recorded the most substantial increase - of over 7 times. From 300,000 in 2001, their number increased to over 2.2 mln in 2011, Eurostat reported. Turks top the ranking, in terms of largest number of foreign citizens, living in EU member states - in 2011 they were in the range of between 4 and 5 mln. The highest share of part-time workers has been observed in the Netherlands - nearly 48%. In the UK, Germany, Denmark, Sweden and Austria over a quarter of all employees work part-time.
Source: Class (14.06.2012)

About 28% of Bulgarians to go on holiday this summer Over a quarter of adult Bulgarians have plans to go on holiday at the seaside, in the mountains or elsewhere this summer, showed a traditional nationally representative survey of BBSS Gallup International devoted to summer vacations and holidays, commissioned by Klassa daily. The share of Bulgarians who will be able to go on holiday this summer is slightly higher, compared to the last few years. In 2008-2011, the portion of the population sharing plans for summer holidays was in the range of 23-24%. More than half of the young Bulgarians of age (18-25-year-old) - 51% - will be able to set aside money for a summer vacation. Almost the same share of people - 45% - from the next age group - 26-40 year-olds – plan holidays at the seaside or in the mountains during their summer vacation. More than half of the university graduates and Bulgarians with a personal monthly income exceeding BGN 700 say they will go on a summer holiday. Four-fifths of those planning to a vacation have chosen a destination in Bulgaria. Holidays at domestic resorts or locations are traditionally among the most preferred options for the majority of Bulgarians. A trend which emerged in the last few years is for about one-tenth of Bulgarians to go on holiday abroad. The share has remained almost unchanged from 2011 - 12% of the respondents will have a holiday abroad. The largest number of people preferring holidays abroad are those aged between 41 and 55 years and university graduates. About one-fifth of the representatives of these two groups have plans for holidays outside Bulgaria. A vacation at the seaside is the most frequently preferred vacation this year, too. Almost three-quarters (72%) of the polled Bulgarians planning holidays will spend their vacation at the seaside and a little than a quarter (23%) will choose a holiday in the mountains. Bulgarians under the age of 40 are the greatest fans of holidays at the seaside. The average length of a planned vacation (whether at the seaside, in the mountains or elsewhere) is just over seven days. Only 5% of the respondents intend to have a vacation longer than 10 days. The average amount of money that Bulgarians can afford to spend for their holidays this summer has stayed almost unchanged from last year – around BGN 787. A considerably higher holiday budget can be set aside by the residents of Sofia, Bulgarians aged between 41 and 55 years and university graduates. Representatives of these groups plan to spend more than BGN 1,000 in order to enjoy a good vacation.
Source: Class (18.06.2012)

In the first quarter of 2012, the total hourly labor cost in Bulgaria rose by 6.2% compared to the first quarter of 2011. These flash figures were released Monday by the Bulgarian National Statistics Institute, NSI. The total hourly labor cost grew by 4.2% in the industrial sector, by 9.5% in the services one, and by 0.4% in construction. The breakdown by economic activities shows that the highest annual growths in total labor costs were recorded in 'Other Service Activities' - 17.1%, in 'Administrative and Support Service Activities' - 14.6% and 'Information and Communication' - 14.4%, while the lowest annual growths were registered in 'Construction' and 'Human Health and Social Work Activities' respectively 0.4% and 1.8%. Decrease in total labor costs was observed in 'Real Estate Activities' by 1.0% and 'Arts, Entertainment and Recreation' by 0.8%. The two main components of labor costs are wages & salaries and non-wage costs. In the structure of the total labor costs, wages and salaries costs per hour worked grew by 7.1% in comparison with the same period of 2011, while the other (non-wage) costs rose by 2.0%. Among the economic activities in the first quarter of 2012, compared to the first quarter of 2011, the growth rate of wages and salaries component ranged from (-0.7%) in 'Real Estate Activities' to 18.9% in 'Other Service Activities'.
Source: Capital (19.06.2012)

A 6.2% growth in labour costs in the first quarter The total cost for employers per employee per hour worked increased by 6.2% year-on-year in the first quarter of 2012, while there was an increase of 4.2% in industry, as well as a 9.5% hike in the service sector and a 0.4% rise in the construction sector, according to data of the National Statistics Institute (NSI) published on Monday. For the last quarter of last year, there was an increase of 9.7%, while for the third quarter of 2011, there was a rise of 7.2%. The largest increase of 17.1% was recorded in the sector "other activities", while there was a growth of 14.6% in administrative and support activities, and a 14.4% increase in the creation and dissemination of information and creative products and telecommunications. The lowest growth was registered in the construction sector, as well as in the activities related to healthcare and social work - of 0.4 % and 1.8 %, respectively. In terms of real estate operations, a 1% reduction in labour costs was also reported, as well as a 0.8% decrease in the sector of culture, sports and entertainment. In the composition of total labour, the overall payroll costs per hour worked rose by 7.1%, compared to the first quarter of 2011, and other expenditures increased by 2%. By comparison, for the fourth quarter of last year, there was a 9.7% growth in wages. In terms of economic activities, salaries over the same period last year ranged from a decrease of 0.7% for real estate operations to a hike of 18.9% for the sector "other activities". Let us remind our readers that, according to the latest Eurostat data, Bulgarians received an average of ˆ4,395 per year, which is the lowest indicator in the European Community, given that in Denmark the figure reached ˆ58,640. Bulgaria was outranked even by Romania with ˆ5,891. Average labour costs per hour ranged from ˆ40 in Sweden to ˆ3.1 in Bulgaria and ˆ4.2 in Romania.
Source: Class (19.06.2012)

Bulgaria’s revenue and spending – the last in the EU A recent survey of Eurostat showed that Bulgaria is again the country with lowest amount of revenue collected by the Government per capita - ˆ1,708. Our country is also at the bottom of the ranking among EU member-states in terms of the expenditures made by the State per capita - only ˆ1,816. This is almost seven times lower than the average in Europe - ˆ12,327 and seventeen times less than in Luxembourg which is the first in this respect with government spending of ˆ34,718 per capita. It’s worth noting that as a percentage of GDP Bulgaria’s expenditures are 35.2%, but they are close to the expenditures of Switzerland - one of the countries with the highest standard in Europe - 34.2%. The highest government expenditures for 2011 were registered in Denmark where the percentage was more than half of GDP (57.9%), followed by France (55.9%) and Finland (54.0%). In absolute terms, total expenditures decreased in both the EU and the Eurozone, compared to 2010, which is proof of the more stringent financial discipline imposed last year. In 2011, the countries spent a total of ˆ6.650 trln, or 49.4% of the output. As a share of GDP, government expenditures rose sharply in 2007-2009 - from 45.6% to 51.1%, and then started to gradually decrease. The revenues of European countries stood at around ˆ11,200 per capita on average, compared to Bulgaria’s ˆ1,708. The leaders in this respect are: Norway with ˆ40,906, followed by Luxembourg with ˆ34,230, Denmark (ˆ24,113) and Sweden (ˆ21,074). The same countries, with the exception of Luxembourg, are also leaders in terms of revenues as a share of GDP, which is over 50%. In Luxembourg, the high revenues per capita are rather due to the good level of output than to the size of the public sector. In Bulgaria, this share is the lowest - only 35% of GDP.
Source: Class (21.06.2012)

Business climate deteriorates for a third time this year Business climate in our country deteriorated in June on a monthly basis mainly due to unfavorable expectations of managers from the industry and retail trade sectors, according to the data of the National Statistical Institute. Thus, for the third consecutive time, the index recorded a decrease. In January, it slumped by 0.7% due to a decline of the indicator on retail trade. In February, it fell by 2.4 percentage points because of the deterioration in the sectors of construction, retail trade and services. In March, the indicator rose by 2.3 %, in April – it increased by 3.2 points, while in May it hiked by 2.8 points. The overall index in June declined by 1.2 points as a result of a 2% slump in industry and as much as 7.7% decline in the trade sector. Business climate remains unchanged in the construction sector and the biggest optimists are those working services sector, where it grew by 5.7 points. The decline in the industry results from the lower expectations of entrepreneurs for the condition of companies. The survey recorded some improvement in the production provision with orders from abroad, which is however not accompanied by increased expectations of the companies in the coming months. The main factors restricting the sectoral development refer to the uncertain economic environment and insufficient domestic demand. Managers also expect a slight increase in sales prices.
Source: Class (29.06.2012)

Regional business: Properties in Turnovo and Gabrovo are leaders in decrease Veliko Turnovo is one of the places with big decrease in prices geographically, along with Rousse, Pleven, Pernik and Gabrovo. Turnovo is the sole regional town among them, in which tourism is seriously developed. NSI’s data points out that from its peak in 2008 till the end of last year, average market price of housing fell by 41%. Only Rousse is ahead with a 48% decrease. Average price per square meter is BGN 730. Last time there was an increase was in the end of 2011. From the beginning of the year prices are falling down again. Last year Turnovo was the second town in Northern Bulgaria, after Varna, with the biggest number of ready-for-use homes- a total of 710. Start of new projects is subtle, construction work continues around Akatsia and Cartala districts, which are located near the center of the town. In Gabrovo, there is a slight decrease in prices, as compared to its peak in 2008 with slightly more than 38%. At present in Gabrovo one can buy a home at an average of price BGN 533 per square meter, while back in 2008 the value was BGN 863. Purchase of properties with prices between BGN 20-40 thousand is the mass case. Generally, there is a great demand for is panels with three rooms and for solid constructions with one or two rooms.
Source: Capital (29.06.2012)

EU unemployment hits new record high of 10.3% Unemployment in the European Union was 10.3 per cent in May 2012, the highest since EU statistics office Eurostat started keeping records in 1995. In the same month, unemployment in the 17-member euro zone was 11.1 per cent. This means that in the 27-member EU, close to 25 million people are jobless. According to Eurostat, unemployment in Bulgaria in May 2012 was 12.2 per cent, the same as the previous month. The jobless rate in Bulgaria hit 12 per cent in February 2012 and increased to 12.1 per cent in March, according to Eurostat’s figures. EU27 unemployment was 10.2 per cent in April 2012 and 9.5 per cent in May 2011. Eurostat said that it estimates that 24.868 million men and women in the EU27, of whom 17.561 million were in the euro zone, were unemployed in May 2012. Among the EU member states, unemployment was lowest in Austria (4.1 per cent), the Netherlands (5.1 per cent), Luxembourg (5.4 per cent) and Germany (5.6 per cent), and highest in Spain (24.6 per cent) and Greece (21.9 per cent in March 2012).
Source: Class (03.07.2012)

The citizens of Russia, Ukraine and Moldova who visited Bulgaria in 2011 can now enjoy eased visa rules for the Balkan country. As of July 1, Bulgaria's consular offices in the aforementioned countries will issue annual multiple entry visas to all citizens who made a holiday or business trip to Bulgaria in 2011. The candidates have to bring a photocopy of their 2011 visa. As of January 2012, Russian holders of Schengen visas have been able to visit and stay in Bulgaria without Bulgarian visas. The number of visas that Bulgaria issued to Russians in 2011 grew by 35% compared with 2010, and by 100% compared with 2009. According to Bulgaria's National Statistical Institute, a total of 469 800 Russians and 38 500 Ukrainians visited the country in 2011.
Source: Dnevnik (04.07.2012)

Three Bulgarian cities rank among "model" EU performers with lowest levels of unemployment Three Bulgarian cities made the list of EU cities boasting the lowest levels of unemployment, according to Eurostat research on urban population within the 27-member union. The capital Sofia is one of the top performers in the list, with only 1.1% of its population officially out of work. Only 2.4% of people living in Burgas are unemployed, with the number slightly higher for Varna – 2.6% of people in active working age. Several other Europen cities, Birmingham, Breda, Tallinn and Ljubljana, enjoy similarly low unemployment rates. About 40% of the EU population lives in predominantly urban areas, showed data from Eurostat. There are 323 major cities within the union, with combined population of over 127 mln. Workers in Munich, Stockholm, Copenhagen, Prague, Amsterdam and Warsaw experience least difficulty in finding a job, the study found. More than 50% of respondents from these cities said they can count on high-payed positions. By contrast, just 10% of people surveyed in Naples, Palermo, Malaga, Riga and Miskolc said they have no problem finding work. Southeast Bulgaria remains the poorest EU region, with unemployment reaching more than 50% in some areas. Only one of every ten people surveyed from Luxembourg, Malmo, Graz, Copenhagen and Stockholm report financial troubles. In comparison, half of those in Sofia, Athens, La Valetta and Palermo commented they had financial difficulties.
Source: Class (06.07.2012)

Businesses expect a new energy price shock in 2013 because of the greenhouse gas quotas The Bulgarian Industrial Association (BIA) forecasts a new energy price shock in 2013, although the State Energy and Water Regulatory Commission (SEWRC) promised there would be no more price hikes such as the last increase of 13-16%. Businesses, however, expect a steep rise in electricity prices next year because of the need to invest in flue gas desulfurisation (FGD) systems in compliance with the plan, approved by Brussels for investing over ˆ1bn in the reduction of air pollution as a condition to give Bulgarian enterprises a postponement of the time when these should begin to pay in full for greenhouse gas quotas. When the Government approved that plan last September, it became clear that the electricity prices would increase by some 11-25% because of the investments in desulphurisation systems, which will be included in the price of electricity. Businesses demanded treatment of energy consumers on an equal footing, creation of conditions for predictability of energy costs, clarity of the expected impact of the plan for derogation on energy prices and a review of the National Energy Strategy. According to Bozhidar Danev, Executive Chairman of BIA, the overall effect of the electricity increase as of July 1 is almost BGN 600 mln – BGN 300 mln for the energy system, BGN 190 mln for renewable energy sources, BGN 40 mln for coal plants and BGN 40 mln for thermal power plants.
Source: Class (09.07.2012)

According to flash estimates, the seasonally adjusted industrial production index in Bulgaria increased by 0.9% in May 2012, compared to April 2012. The preliminary data was released Tuesday by the Bulgarian National Statistics Institute, NSI. In May 2012, the working day adjusted industrial production index also rose by 0.9%, compared to the same month of 2011. In May 2012, as compared to April 2012, the seasonally adjusted Industrial Production Index in the mining and quarrying industry increased by 2.6%, in the electricity, gas, steam and air conditioning supply by 1.9% and in the manufacturing by 0.5%. The most significant increases of production in manufacturing were noted in the manufacturing of chemicals and chemical products - by 22.8%, in the repair and installation of machinery and equipment - by 16.7%, in the manufacturing of fabricated metal products, except machinery and equipment - by 14.0%, in the manufacturing of wood and of products of wood and cork, except furniture; manufacturing of articles of straw and plaiting materials - by 12.3%, in the manufacturing of furniture by 12.0%. There was a decrease in the manufacturing of basic metals - by 15.2%, in the manufacturing of textiles by - 5.9%, in the manufacturing of clothing apparel - by 3.8%. On annual basis, in May 2012, the industrial production index, calculated from work day adjusted data, in manufacturing increased by 3.9%, while decreases were seen in the mining and quarrying industry - by 13.1% and in the electricity, gas, steam and air conditioning supply - by 7.0%. Increases were registered in the production of investment goods - by 4.6% and in the production of energy - by 1.0%, while in the production of intermediate goods there was a decrease of 4.3%.
Source: investor.bg (09.07.2012)

Index of construction production decrease by 34% for 4 years in May, calculations based on NSI’s data show. In 2008 the biggest value of the index for the corresponding month with 177.6 points was registered. In May 2012 the index of construction production, calculated from seasonally adjusted data retains its level from the previous month and production of civil / engineering increased by 0.3% while building construction registerd no change as compared to April. Yoy decline in construction output in May 2012 was mainly driven by negative growth in building construction, where the decline was 8.2%, calculated from the day-adjusted data, while civil / engineering registerd an increase of 4.4 %.
Source: investor.bg (09.07.2012)

Bulgaria’s exports to the EU shrink by 1.4% in the first four months of 2012 In the first four months of 2012, Bulgaria’s exports to the EU fell by 1.4%, compared to the same period of last year and stood at almost BGN 7.4 bn, preliminary data of the National Statistical Institute (NSI) showed. Exports, which were the main engine of growth of the Bulgarian economy last year, slowed down even before exporters began to feel the adverse impact of the steep increase in energy prices. The slowdown in exports for the first four months of 2012 was due to the decline in exports in January and February. In April 2012, Bulgarian exports to the EU increased by 8.2%, compared to the same month of 2011 and amounted to BGN 2 bn. Bulgaria’s main trade partners are Germany, Italy, Greece, Romania and France, accounting for 65.7% of the exports to EU member-states. The strong increase in exports in April shows that the sector resists the negative effects of the crisis in the Eurozone, but it is questionable whether it will withstand the internal factors for the Bulgarian economy, such as the 13% increase in electricity prices as of July 1. The foreign trade balance (exports FOB - imports CIF) of Bulgaria with the EU for the January-April 2012 period registered a deficit of BGN 1.5396 bn. Calculated in FOB/FOB prices (after deducting transport costs and insurance costs on imports), the trade balance reported a deficit of BGN 1.1265 bn.
Source: Class (10.07.2012)

Bulgaria's Import Surpasses Export The growth of Bulgaria's import significantly exceeds the increase of export. For the first 5 months of 2012 the export grows by only 0,9% and it amounts to 15,9 billion levs, investor.bg reported. At the same time the import rates increased by 12,1% to reach 19,1 billion levs. It seems that Bulgaria's export has lost its power as a gear to the development of the country's economy. For the first 5 months of 2012 Bulgaria registers a negative trade balance worth 3.24 billion levs which is a growth of 147% on an yearly basis. Only in May 2012 import grew by 19% on an annual basis while export increased by 10,7%. As a result of that the gap is the foreign trade in May increased by 78% on an annual basis to reach 817 million levs.
Source: Standart (11.07.2012)

Only one-fifth of hotels and cabins were occupied in May Less than one-fifth of lodging capacity in hotels, motels, camping sites, cabins and other supplementary tourist accommodations for more than ten people was occupied this May, showed data from the National Statistics Institute revealed on Tuesday. Still, this is an increase of 51.3% in the number of visitors, compared to the previous month. At the same time, the institute reports a significant growth in the number of supplementary tourist accommodations and available beds in them. As of May, there were 1,932 tourist accommodation establishments and supplementary tourist accommodations with more than 10 beds in the country - hotels, motels, camping sites, cabins and other options for short-term lodging. The number of rooms was 90,100, with total beds counting - 187,400. On a month-to-month basis, the number of tourist accommodation establishments and supplementary tourist accommodations grew by 13%, while the number of beds increased by 54.9%. A modest 19.8% of those were occupied in May. Visitors chose mostly 4- and 5-star hotels, which were booked at 25.6%, followed by 3-star hotels with a 17.1% occupation rate. The poorest performers are tourist accommodation establishments and supplementary tourist accommodations with 1- or 2-star status – 14.3%. Tourist accommodation establishments with 4 and 5 stars registered a 1.7 percentage points increase in the occupation rate from April, while those with 1, 2 and 3 stars suffered a decrease of 1.3 and 1.7 percentage points, respectively.
Source: Class (11.07.2012)

Exports still lag behind imports, but these to third parties increase In May 2012, Bulgaria’s exports totaled BGN 3.6 bn, registering an increase of 10.7% on an annual basis. Meanwhile, total imports to our country increased by 19.3%, compared to the same month of last year and amounted to BGN 4.4 bn, announced the National Statistical Institute (NSI). Bulgaria’s exports to the European Union and other countries for the first five months of 2012 stood at BGN 15.9 bn, reporting an increase of 0.9%. Goods exported in May were worth BGN 3.6 bn. Imports were worth BGN 20.1 bn, having increased by 12.1%. Thus, the overall trade balance registered a deficit of 4.210 bn at the end of May. In January - May 2012, Bulgaria’s exports to third countries alone rose by 3.3%, compared to the same period of last year and amounted to BGN 6.4 bn. The main trade partners of our country in this segment are Turkey, China, Russia, Serbia and Macedonia, accounting for 46.6% of the exports to third countries. Imports from third countries to Bulgaria for the first five months of 2012 rose by 15.8%, compared to the same period of 2011 and were worth BGN 8.5 bn. The largest growth was reported in the imports from Peru, Bosnia and Herzegovina, Iran and Brazil, while the decrease was registered in the imports from Kazakhstan, Israel and the Ukraine. At the end of May, Bulgaria’s foreign trade balance with third countries had a deficit of BGN 2.088 bn.
Source: Class (11.07.2012)

Unemployment in June was 10.8% Unemployment in June was 10.8%, which is by 0.2 percent points under its level in May. Rate of decrease in unemployment is exclusively low, though we are in an active season, when usually temporary employment in tourism and agriculture goes up. According to Employment Agency in June 2011 unemployment rate was 9.56 per cent, and in May 2011 - 8.87%
Source: investor.bg (12.07.2012)

Bulgarian national product (BNP) in current prices decreased by 1.66% on an annual basis to BGN 15.71 billion for the first quarter of 2012. Seasonally and working day adjusted data showed GDP growth of 0.5% on an annual basis. This is based on prices in 2005. The biggest economic sector, namely industry registers a decrease of 7.9% on an annual basis to BGN 3.53 billion for the first quarter of 2012. In trade the decline is by 6.4% on an annual basis to BGN 2.32 billion. The third largest sector in the economy is government, health, education and social work, where the decline is 1% to BGN1.9 billion. In operations with real estate the decrease is by 2.28% on an annual basis to BGN 1.49 billion. Financial and insurance activities have increased by 6.76 percent annually to BGN1.33 billion. There is a significant increase from 22.5% to BGN 493 million in the agricultural sector, forestry and fishing, but it is a small share of the economy. When GDP fell by 1.66 percent annually, the gross value added (GVA) decreased by 4.07 percent to BGN13.37 billion. The difference between GVA and GDP is called adjustments and includes the difference between collected taxes and subsidies paid. Corrective increased by 14.84 percent annually to BGN 2.33 billion in the first quarter of 2012
Source: investor.bg (12.07.2012)

Bulgaria's accumulated inflation rate since the beginning of 2012 was 0.5% as of June, according to the country's National Statistical Institute. The annual inflation in June 2012 compared to June 2011 was 1.6%. Consumer prices in the fell by 1% in June, after shrinking by 0.1% in May, according to the Institute's data. Prices for food and beverages went down by 2.4%. Transportation prices dropped by 1.8%. The annual average inflation, measured by the consumer price index in the last 12 months (July 2011 – June 2012) compared to the previous 12 months (July 2010 - June 2011) was 2.7%.
Source: Capital (13.07.2012)

NSI reports deflation in June The consumer price index for June 2012, compared to May 2012, was 99%, i.e. the monthly inflation rate was minus 1%, showed data of the National Statistical Institute (NSI). This practically means that deflation was registered last month. Since the beginning of the year, the cost of living has increased by 0.5% and the annual inflation in June 2012 was 1.6%, compared to June 2011. The annual inflation rate for the July 2011 - June 2012 period was 2.7%, compared to July 2010 - June 2011. Prices of foods and non-alcoholic drinks registered the biggest drop in June of 2.4% and transport costs were 1.8% cheaper. On the other hand, restaurant and hotel services reported the highest price increase – 0.6%, followed by those for leisure activities, recreation and entertainment – 0.5%. In June, prices of medicines and other pharmaceutical products fell by 0.2%, and prices of medical and dental services rose by 0.5% and 0.3%, respectively. The prices of goods included in the so-called ‘small consumer basket’ (the 100 indispensable goods and services with their relative share in the budget of the poorest 20% of households) declined by 1.2% in June, compared to May. Since the beginning of the year, the inflation rate in the small basket is 0.1%. The prices in the ‘small consumer basket’ changed from the previous month as follows: food products (-2.2%), non-food products (-0.3%) and services (+0.1%).
Source: Class (13.07.2012)

Municipalities to distribute uncultivated lands ex officio Owners of agricultural lands, who do not have concluded contracts for rent have to submit an application if they want to cultivate them till July 31. Otherwise rough terrain will be allocated automatically to the major tenant on the land. They have to pay to an account in the municipality, which is due to the owner, who may request it within three years. The regulation comes from the Ownership and Use of Agricultural Lands. All owners of land, who have not leased, must declare till 31 July if they want to cultivate it themselves, or do not wish to assign it to others. This happens in local agricultural offices, in which range the property is subject. If they do not do it, they plot within the scheme of distribution based on official agreement, which is concluded with the municipality and large farmers in the village. The document, which should be signed before the start of the new business year, provides for proportional distribution of derelict land between farmers working in the area for which they pay the average rent. The amounts are imported into off-budget account to the municipality. The owner can get them within a three years term. If not done, all money that is deposited is left in favor of local administration. Even though no extensive research on the quantity of land that is cultivated unlawfully has not been made, over the years it has been estimated that between 15 and 25% of all fields in the country are such. Revisions of the State Land Fund has also shown that in not rented or leased areas there are companies that settled. This led to gradual changes in legislation providing for official distribution of the so-called. white spots (abandoned fields) among farmers working in a particular territory, and by introducing the obligation to pay rent for them in the municipality. According to latest data of the ministry farmland in the country is about 36 million acres, of which 33 million acres are cultivated. The remaining approximately 3 million acres are fallow fields and local authorities often can not find their owners. An extensive study of Eurostat, took last year reported that since 2003 the highest increase of arable land from all countries, members of the EU - 24.7% has been registered. The average area per farm however, in the country is 9.8 hectare while the average percentage in the EU is over 14 hectares
Source: Capital (16.07.2012)

NCSPO: Some 52% of Bulgarians will not go on a summer holiday The data shows that 52% of Bulgarians will not go on a holiday this summer. In most cases, these are elderly people of over 60 years of age, residents of smaller towns and villages, people with primary or lower education, as well as people with lower-than-average living standards, according to a representative national survey by the National Centre for the Study of Public Opinion (NCSPO), conducted between June 27 and July 3 among 1,000 people and quoted by BNA. The older the Bulgarians, the lower their ability to afford a summer vacation, according to sociologists. Some 48% consider going on a summer vacation. Sociologists have found out that the share of Bulgarians who consider taking a summer holiday has increased more than four times since 1993, from 11% to 48%. Thus, 2012 resembles pre-crisis 2007, according to NCSPO. Some 21% of respondents have said that they will spend between BGN 200 and BGN 500 on their holiday. Some 11% can spare up to BGN 1,000, while only 4% can spare more than BGN 1,000. About 12% can afford a holiday for less than BGN 200. In general, there is no considerable difference in the amount of money that respondents will spend on their holiday, compared to last year. The youngest ones, below 29 years, are the least inclined to do without a summer holiday: 77% of them will afford a summer holiday, up 10% compared to last year. The share of Bulgarians with higher education who will have a summer holiday has increased by 4% - from 62% in 2011 to 66% in 2012. NCSPO has posted an 8% increase in the intentions of people with higher-than-average living standards to take a summer holiday compared to 2011. The share of people with average living standards who will take a summer holiday has also increased by 8% - from 48% in 2011 to 56% in 2012.
Source: Class (17.07.2012)

Official data confirms expectations of 10-15% growth in the number of Russian tourists Actual figures for the growth in the number of Russians coming to Bulgaria on holiday meet initial expectations, as the country granted its 10,000th visa to a Russian citizen, according to Focus news agency, citing Ivo Marinov, Deputy Minister of Economy, Energy and Tourism. In terms of visas issued, the increase is 15%, compared to last year. As of the end of June, there was a 75% rise in the number of Ukrainian vacationers from 2011. A similar picture emerges from figures for the Belarus tourist market, where the increase is 31% year-on-year as of June 30. The adoption of looser visa requirements and new visa centres in Russia, the Ukraine, Turkey and the Gulf region helped boost the numbers. Big travel agencies, who arrange holiday trips to Bulgaria for Brits, report a 10% expansion in business for the summer season. This should be enough to offset the drop recorded during the winter. The German market is on track towards a modest growth from last year. The higher number of charter flights and tourists serviced by Varna and Burgas airports indicates as much, Marinov said. Infrastructure investments in new roads, the Meden rudnik road connection between Burgas and Sozopol, section 3 of Trakia highway from Nova Zagora to Yambol and the upcoming launch of the segment to Petolatchka have had a positive effect on domestic tourism, according to him. There was a nearly 48.6% rise in revenue from lodging fees from the previous month, showed data from the National Statistics Institute. Earnings from foreign citizens rose by 78%, while Bulgarian vacationers brought to the sector almost 19% more money. The total number of night stays in all types of tourist accommodation establishments and supplementary tourist accommodations is 51% more than in April.
Source: Class (18.07.2012)

Emigrants brought back a record-high sum of money at home. Bulgarians living abroad sent in Bulgaria almost EUR 10 million more in May this year, as compared with a year earlier. Funds amount to a total of EUR 78.2 million. That way the spectacular sum of EUR 72 million, registered in March was surpassed. The highest registered sum, sent to Bulgaria last year was EUR 77 million, which happened in May. The average monthly sum in 2012 of money sent home is EUR 67.8 million. A total of EUR 339 million was poured into the country by Bulgarians living abroad in the first five months of the year. The same period last year, the sum was EUR 334 million. For the whole 2011 the sum amounted to EUR 770.1 million. Highest number of Bulgarians living abroad is registers for Spain. Other preferred countries are Germany, Italy, Belgium, the Netherlands.
Source: Novinar (23.07.2012)

Bulgaria's Dwelling Prices Up by 0.2% in Q2, 2012 Dwelling prices in Bulgaria increased by 0.2% in the second quarter of 2012 compared to the first three months of the year, according to data of the National Statistical Institute (NSI). The increase was due to an increase in prices of apartments in 13 district cities (most notably in Targovishte, up by 3.5%, Razgrad, up by 3.4 and Veliko Tarnovo, up by 3.1%) and the decelerated price decreases in Sofia compared to end-2011. Price decreases were registered in 14 district cities. Dwelling prices in Bulgaria fell by 2.6% in Q2, 2012 compared to Q2, 2011. In Q2, 2012, the average market price of dwellings for the entire country was BGN 885.32 per square meter. The highest average prices were registered in Sofia (BGN 1457.38 per sq m), followed by Varna (BGN 1429.00 per sq m) and Burgas (BGN 1151.17 per square meter).
Source: Sega (24.07.2012)

Every fourth Bulgarian households live below the poverty Nearly 27% of households in Bulgaria live below the poverty line, relying on a monthly income of less than BGN 205 per person, according to results of a survey of the Confederation of Independent Trade Unions in Bulgaria (CITUB) on prices and monthly allowances in June and in Q2, 2012. The results of the CITUB survey indicate that around 600 000 families live in poverty and their number has increased by 3% from Q1, 2012. During the reporting period, prices of electricity and heating steadily increased, the tariff increase reaching almost 11% for the whole year. Monthly allowance per household member amounted to BGN 547 in June. BGN 2188 per month is the cost of a family of four, the analysis showed. According to forecasts of CITUB, the monthly allowance will reach BGN 556 per person by the end of 2012 and the annual increase will amount to BGN 20. CITUB predicts that by end-2012, the monthly allowance of a 4-member household will increase by BGN 80, the main reasons being the higher prices of electricity and the related price spikes. "This will push up the inflation rate from the level of 1.9% in mid-2012. We believe that the inflation rate will approach 4%," said Plamen Dimitrov, CITUB President.
Source: 3e-news (27.07.2012)

In July 2012, the total business climate indicator, increased by 1.1% on the month, with improvements registered in the spheres of industry and construction and retail trade, while the services sector posted a decline. In July 2012, the complex "business climate in the industry" indicator increase by 1.9 percentage points mainly due to increasingly optimistic expectations of managers for the financial condition of the companies over the next 6 months. The average capacity utilization in July 2012 increased by 1.4 percentage points to 71.3% compared to April 2012. As regards selling prices, managers continue to expect increases over the next 3 months. In July 2012, the business climate in the construction sector increased by 1.6 percentage points. As regards selling prices in the sector, entrepreneurs expect the rates to remain unchanged over the next 3 months. In July 2012, the complex indicator "business climate in retail trade" increased by 1.4 percentage points.
Source: Novinar (30.07.2012)

Bulgaria's Producer Prices in Industry Up by 3.3% June 2012 Y/Y Bulgaria's producer prices in industry in June 2012 grew by 3.3% as compared to the same month of 2011, according to the country's National Statistical Institute. Price increases were registered in the manufacture of chemical and chemical products (by 8.0%), tobacco products (by 7.8%) and textiles by 5.6% A decrease was seen in the manufacture of basic metals (by 2.6%). The producer price index on Bulgaria's domestic market decreased by 0.8% compared to the previous month. Domestic prices decreased in the mining and quarrying industry (by 0.7%), and in manufacturing by (1.2%), while prices remained unchanged in the electricity, gas, steam and air conditioning supply. In manufacturing, the more significant prices decrease compared to the previous month was seen in the manufacture of basic metals (by 3.2%).
Source: Darik Radio (31.07.2012)

26 thousand Bulgarian companies ceased operations in 2009, according to the National Statistics Institute. These are just 8% of the companies operating on the domestic market during the first year in which Bulgaria began to feel the crisis. Following the closure of these companies, nearly 2.2% of the employees in the country then lost their jobs. The most vulnerable companies appear to be working in "Trade, repair of motor vehicles, motorcycles and personal and household goods" because they are the most common victim of the financial doldrums. On the opposite side are the companies in the mining industry, sewage and electrical services, waste management, water supply and financial services as bankrupt firms in these sectors are only 0.2% of all business entities in 2009. Another worrying aspect is that in 2010 only 10% of the companies in the country had staff over 10 people. In 39% of company employees were between 1 and 4 people.
Source: Standart (01.08.2012)

Metals in iron health In 2011, as well as in 2012 the increase is mainly in exports. This shows that metallurgy is competitive on the European markets, chairman of The Bulgarian Association of the Metallurgical Industry /BAMI/ Politimi Paunova said. For last year volume of exported ferrous and non-ferrous metals increased by 16%, while value terms of sales outside the country went up by 40%, reaching BGN 7.6 billion. Sales abroad increase at a slower pace as compared to 2010. The main reason is low basis in 2009, when the sector registered significant decline. According to BAMI’s data about 14% of industrial production in Bulgaria in 2011, together with local consumption is due to metallurgical companies. The ten companies of the sector’s rating concentrate over BGN 8 billion revenues, which rank the sector among the top three industries with the highest turnover (after fuel and energy). Bulgaria is a small market. The crisis made companies to shrink their investment activity, which in addition affected ferrous metallurgy, Anton Petrov says, Chairman of the Board of directors of BAMI and representative of the Greek Viohalco, which owns Steel Industry, Sofia Med, Etem Bulgaria (Steelmet) and Metalvalius.
Source: Capital (01.08.2012)

Bulgaria's real unemployment rate is about 19%, and will most likely keep growing, according to Dimitar Brankov, Deputy Chair of the Bulgarian Industrial Association. He based his forecast of growing unemployment on the potential hike of the minimum monthly salary in Bulgaria from BGN 290 to BGN 310 in 2013 will lead the most vulnerable sectors of the Bulgarian economy to lay off more people. He noted that even Bulgaria's official unemployment rate has kept climbing up, reaching 12.4% in the second quarter of 2012. "The minimum salary and minimum social security threshold have a negative influence on the economy, especially on the service sector, including the hotel business, trade, and construction, that is, the sectors that have low wages," Brankov argued, as cited by Darik Radio. "The next to suffer are the plants that are in a bad economic condition, regardless of their economic sector. So all of these sectors will be forced to lay off more workers," he predicted.
Source: Darik Radio (02.08.2012)

44% of the companies without employees Companies of the type "I am my own boss" are prevalent in Bulgaria, a study by the National Statistics Institute shows. According to him, 44% of active enterprises in the country in 2010 were without staff. This means that the owner is working on own account by not hiring people. Therefore it is surprising that such companies account for only 5.9% of the employment in Bulgaria. Although companies with over 10 employees with the lowest share of active firms - 10%, they hold a share in the employment of 72.7 percent. According to NSI in 2010 the country had 323 872 active companies, as their numbers decreased by 1.2% over the previous year. The tendency for registration of new companies slowed down as well, in 2010 they were 11.4 percent of the total average from 17% in the preceding 5 years. Only 5.8% of the 2005-based companies continue to exist in 2010, the survey shows.
Source: Trud (02.08.2012)

Bulgaria Registers over 12% Unemployment in Q2 2012 In Bulgaria, in the second quarter of 2012, the economically active population aged 15-64 was 3 283.1 thousand or 66.6% of the population in the same age group. The data comes from flash results from the Labor Force Survey, carried out and published Friday by the National Statistical Institute, NSI. In comparison with the second quarter of 2011 the activity rate was by 1.1 percentage points higher. The total number of employed persons was 2 913.5 thousand and their proportion of population aged 15 and over was 46.2%. The number of employed persons aged 15-64 was 2 875.1 thousand. The employment rate for the population of the same age group was 58.3%, by 0.2 percentage points higher than in the same quarter of 2011. The number of unemployed persons was 409.7 thousand and the unemployment rate - 12.3%. In comparison with the second quarter of 2011 the unemployment rate increased by 1.1 percentage points. The Labor Force Survey (LFS) is a continuous sample survey providing quarterly and annual data on the economic activity of the population aged 15 and over. The survey covers non-institutional households. Economically active population (labor force) comprises all employed and unemployed persons. Final Labor Force Survey data for the second quarter of 2012 will be presented on August 21 2012.
Source: Darik Radio (06.08.2012)

Bulgarians' Consumer Confidence Up 8% Jul 2012 In July 2012, the total consumer confidence indicator in Bulgaria increased by 7.8 percentage points compared to its April level, according to data published by the National Statistical Institute (NSI) Monday. For the urban population the increase is 9.1 percentage points and for the rural population it is 4.6 percentage points. The consumers' opinions of the development of the general economic situation in the country over the last 12 months and the expectations about the next 12 months are less negative than they are in the previous survey. In comparison with April, a drop of the pessimism in consumers' assessments about changes in the financial situation of households over the last 12 months and the expectations about the next 12 months is also observed. In July, those living in the cities considered the budget of their households currently to be relatively better in comparison with 3 months earlier (an increase of the balance indicator by 7.4 percentage points), while the rural population' situation was reported as deteriorating. The total assessment of conditions for making savings in the present economic situation in the country continues to be unfavorable, but certain improvement is expected in the next 12 months.
Source: Darik Radio (07.08.2012)

NSI: In July residents of towns in Bulgaria grew richer; those living in villages got poorer Bulgarian town residents said their household budget was relatively higher in July 2012 (the balance index went up by 7.4 points) from three months ago, while village residents said they grew poorer, the National Statistical Institute reports. In addition, in April consumers estimated less pessimistically the changes to the financial state of their households over the last 12 months and their expectations for the next 12 months were more optimistic. The consumer confidence index in July grew 7.8 points from its April level, the increase for town residents being 9.1 points and 4.6 points for people in villages. “Consumers' opinions about the development of the economic situation in Bulgaria as a whole over the last twelve months, as well as their expectations for the next twelve months were less negative compared to the previous survey of the institute,” Reneta Indzhova from NSI commented. Consumers responded that over the last twelve months consumer prices increased, but at a slower pace. Consumers' inflation expectations for the next twelve months remained unchanged as well. Consumers expected that unemployment over the next twelve months would remain unchanged or would show an insignificant decline. The latest survey of NSI shows slight optimism in the general assessment of the current situation in terms of spending on durable goods. The balance index of consumers' sentiments on buying such goods in the next twelve months registered an increase in July.
Source: Class (07.08.2012)

In June, the highest annual growth rate of 14.8% in turnover was reported by the retailers engaged in mail order, telephone and Internet, according to the National Statistical Institute (NSI). Increase in turnover is reported also in the retail sale of pharmaceutical and medical goods - by 7.1% and trade in food, beverages and tobacco - by 3%. Revenue of traders of automotive fuels and lubricants rose by 1.1% yoy. Decline as to last year was reported in the trade of textiles, apparel, footwear and leather goods - by 16.4% and in trade with home appliances, furniture and other household goods - by 0.8%, which is already a lasting trend.
Source: Class (08.08.2012)

Industrial production with a decrease in June Industrial production registers a decline by 0.8% in June, as compared to the previous month. NSI’s preliminary data for indices of industrial production shows this. On an annual basis it registers a slight increase by 1.5%. There is most significant increase in production of vehicles, without cars-57,9%, production of apparel-6,8%, as well as that of tobacco products-6,3%. The biggest shrink is registered for production of chemical produts-17,9% and of metal products, without machinery and equipment-15,3%. At an annual base the increase in extraction production is by 8,5%, in processing-by 3,3%. There is a decrease in production and distribution of electric and heat energy and gas-by 5,5%.
Source: Duma (08.08.2012)

Bulgaria's construction sector is expected to lay off at least 4 000 – 5 000 workers by the end of 2012, according to Ivan Boykov, Executive Director of the Bulgarian Construction Chamber. The number of seasonal workers in Bulgaria's construction firms is smaller in the summer of 2012 than it was the summer before, Boykov announced Tuesday, as cited by Focus. "According to our estimates, the Bulgarian construction sector has laid off 76 000 workers since 2008. The amount of work is declining, that is, we don't have work any more, and that is clearly visible from the data of the National Statistical Institute," Boykov elaborated. "The highways are done, the subway as well, there are no big infrastructure projects coming up save for the water supply projects but these are just tenders now. Our forecast is that people will be laid off, not hired," he added. According to the Bulgarian Construction Chamber, about 17% of the construction workers in the country are unemployed, and there is no end to the slump in the sector in sight. "The local authorities have no money for capital spending, and the central government has limited its capital spending to co-financing of EU funded projects. The number of construction firms remains the same but their turnover and number of workers are collapsing," Boykov summed up the situation in Bulgaria's construction sector, which was the major engine of the Bulgarian economy before the 2008 crisis.
Source: money.bg (08.08.2012)

Average Monthly Salary in Bulgaria Up by 3.7% in Q2, 2012 In the second quarter of 2012, the average monthly salary in Bulgaria increased by 3.7% on a quarterly basis to BGN 758, according to data of the National Statistical Institute (NSI). The average monthly salary in April 2012 amounted to BGN 760, compared to BGN 758 in May, and BGN 755 in June. The biggest increases in monthly salaries were registered in the following sectors: "finance and insurance activities", up by 10%, "education", up by 8.4%, and "agriculture, forestry and fishery", up by 7.9%. In Q2 2012, the average monthly salary went up by 8.4% as compared to Q2 2011, with the biggest salary increases recorded in "other activities", up by 22.1% and "professional activities and scientific research", up by 16.2%. The biggest average monthly salary in Q2 2012 went to people employed in the sectors of "creating and distributing information and creative products and telecommunications" – BGN 1776 and "production and distribution of electrical and heating energy" - BGN 1547. In the sector "finance and insurance activities", the average monthly salary was BGN 1533. The lowest monthly payment was registered in the sector of "administrative and auxiliary activities" - BGN 498, "hotels and restaurants" - BGN 499, "agriculture, forestry and fishery"- BGN 572. In Q2, 2012, as compared to Q2, 2011, the average monthly salary grew by 4% in the public sector and by 10.2% in the private sector.
Source: Darik Radio (10.08.2012)

Bulgaria's exports up by 2.8% year-on-year in the first half of 2012 Bulgaria's combined exports to EU and non-EU states reached BGN 19.4 bn for the first six months of 2012, which is a 2.8% rise compared to the same period of last year, according to data from the National Statistics Institute. Total value of imported goods stood at BGN 24.5 bn, or an increase of 12.9%. May saw Bulgaria's exports to EU member states rise by 5.15% year-on-year to BGN 2.1 bn. Between January and May Bulgarian companies sold the same volume of goods in cash terms within the union as the same period last year, BGN 9.6 bn. Bulgaria's main trading partners, Germany, Italy, Greece, Romania, France and Belgium, account for 71.4% of the country's exports to destinations within the EU. Exports to Germany have slumped by 7% since the start of the year, NSI data showed. Bulgaria exported BGN 1.74 bn worth of goods to Germany, and imported BGN 2.3 bn in German goods, or 13.7% more than a year ago. Exports to Italy rose 9% for the year to date to BGN 1.45 bn. Exports to Greece rose more than 14%, while imports from the neighboring country shrank by more than 10% during the first six months. Bulgaria recorded negative trade balance of BGN 2.073 bn with the EU for the January-May period.
Source: Class (10.08.2012)

The number of unemployed Bulgarians increases by 47,500 for a year At the end of June 2012 the number of employees under labour contracts decreased by 47,500, or 2.2% less compared to the number of employees from last year. Unemployment increased most dramatically in manufacturing (up 18,100 people) and construction (up 7,000 people). Meanwhile, the average monthly working salary was BGN 760 in April 2012, BGN 758 – in May, and BGN 755 in June, according to data of the National Statistical Institute (NSI) for the second quarter of 2012. The average monthly working salary went up 3.7% from the first quarter. The average monthly working salary grew by 8.4% to BGN 758 in the second quarter of the year compared to the same period in 2011. Preliminary data show that the number of employees under labour contracts at the end of June 2012 increased by 47,500, or 2.3% from the end of March 2012, reaching 2.15 mln people. Compared to the end Q1 of 2012, the greatest increase in the number of employed Bulgarians was marked in seasonal economic activities such as hotel and restaurant industry (up 37.3%), agriculture, forestry and fishery (up 7.2%), as well as real property operations (up 6.3%). The number of employees under labour contracts significantly fell in the sphere of education – down 3%. In the economic sphere, the greatest relative percentage of employed Bulgarians is observed in manufacturing and trade, and in repair of motor vehicles and motorcycles – up 22.1% and 17.9% respectively.
Source: Class (10.08.2012)

Bulgaria's Exports to Third Countries Up by 7.8% in H1, 2012 In the period January – June 2012, Bulgaria's exports to third countries increased by 7.8% from the same period in 2011 to BGN 7.8 B, according to data of the National Statistical Institute (NSI). Bulgaria's main trade partners were Turkey, China, Russia, Serbia and the Former Yugoslav Republic of Macedonia (FYROM) which accounted for 46.3% of the total of exports for third countries. A significant growth was registered in exports for the United Arab Emirates, Israel, Canada, Syria, China and Brazil, while the biggest decline was recorded in exports for Singapore, Iran, India and Croatia. In June 2012, exports for third countries increased by 33.0% from the same month of 2011, amounting to BGN 1.5 B. In the first six months of 2012, Bulgaria's imports from third countries increased by 13% from the same period of 2011, reaching BGN 10.2 B at CIF prices. The biggest growth was registered in imports from Canada, Peru, Bosnia and Herzegovina, Iran and Brazil and the biggest decline was recorded in imports from Kazakhstan and Israel. In June 2012, Bulgaria's imports from third countries went up by 1.2% from the same month of 2011 to BGN 1.7 B. Bulgaria's foreign trade balance (export FOB – import CIF) with third countries in the period January – June 2012 was negative and amounted to BGN 2 372.4 M. The trade balance at FOB /FOB prices (after the elimination of transport and insurance costs on imports) was also negative and amounted to BGN 1 858.4 M. In June 2012, Bulgaria's foreign trade balance (export FOB – import CIF) with third countries was negative and amounted to BGN 284.4 M.
Source: Darik Radio (10.08.2012)

Bulgaria's Exports to EU Totaled BGN 9.6 B in Jan-May 2012 In the period January – May, 2012, Bulgaria's exports to the EU retained their level from the same period of 2011, amounting to BGN 9.6 B, according to data of the National Statistical Institute (NSI). Bulgaria's main trade partners were Germany, Italy, Greece, Romania, France and Belgium, which accounted for 71.4% f Bulgaria's exports to EU Member States. The most significant increase was registered in exports to Portugal and Slovenia, while the biggest decrease was recorded in exports to Luxembourg and Malta. In May 2012, Bulgaria's exports to the EU increased by 5.1% compared to the same month of 2011, amounting to BGN 2.1 B. Bulgaria's imports from the EU in the period January – May, 2012 increased by 9.6% compared to the same period of 2011, exceeding BGN 11.6 B at CIF prices. The biggest growth was registered in imports from Cyprus and Portugal, while the biggest slump was recorded in imports from Malta. In May 2012, imports of Bulgaria from EU Member States increased by 15.8% from the same month of 2011 to BGN 2.7 B at CIF prices. Bulgaria's foreign trade balance (export FOB - import CIF) with the EU in the period January – May 2012 was negative and amounted to BGN 2 073.0 M At FOB/FOB prices (after elimination of transport and insurance costs on imports) the trade balance was also negative and amounted to BGN 1 533.3 M.
Source: Darik Radio (10.08.2012)

New homes are by 40% less, but are more spacious 520 residential buildings are put into operation between April and June. They are by 26.3% less, as compared to the same period of last year. They dispose with 2175 homes, which is a decline by 40.1%. Average useful area of a single new apartment went up by 77.9 square meters, as compared to 84.7 square meters a year ago. New buildings are most spacious in the following regions: Targovishte-178.0 square meters and Sofia- 142.8 square meters. Vidin and Shoumen have the smallest homes with area of 36.0 square meters and 57.9 respectively. Most new units were put into operation in Varna-115 buildings with 536 homes, Bourgas-77 buildings and 661 homes. Most homes in Sofia were one-family-50 buildings with 52 homes. Dnevnik, 2012, August 10
Source: Dnevnik (10.08.2012)

Bulgaria's Hotel Revenues Up 15% in H1 2012 Bulgaria's income from hotel stays increased by 14.5% in the first half of 2012 year-on-year, the National Statistical Institute announced Friday. Thus, in the first six months of 2012 the total income from hotel stays in Bulgaria amounted to BGN 275 M, the Institute estimates. The increase in hotel revenue in Bulgaria from foreign tourists is estimated at 19.6%, while the revenue from Bulgarian tourists is up by 11.2%. The total number of hotel stays in Bulgarian hotels in the first half of the year is also up – by 7%, reaching a total of 6.5 million hotel stays. In June alone, Bulgarian hotels registered revenues totaling BGN 115.5 M, of those BGN 92.6 M being income from foreign tourists; in June alone, there were a total of 3.1 million hotel stays in Bulgaria, of those 2.4 million belonged to foreign tourists. More than half of the foreigners staying in Bulgaria in the first half of the year chose four- and five-star hotels, the statistical data indicates; the same goes only for about a quarter of the Bulgarian tourists. The average occupancy rate of Bulgarian hotels in June 2012 was 46%, with four- and five-star hotels having an occupancy rate of 60%. In June 2012, Bulgaria had a total of 2 300 accommodation venues with a total of 242 100 beds.
Source: econ.bg (10.08.2012)

Expensive Electricity Triggers Consumer Prices Hike in Bulgaria The fourteen-percent increase in the retail prices of electricity as of July 1, 2012 has triggered a record high 1.5-percent inflation for the seventh month of the year, the national statistical institute said. This is the highest increase in the inflation rate on a m/m basis within the last four years. Such a hike in the inflation rate for a single month was last registered before the world financial crisis hit Bulgaria. The high unemployment rate and the grey consumption have curbed the consumer prices in the recent years, but they have just hiked by 6.3% as a result of the higher price of electricity. Now, the government is expecting higher revenues to the budget from VAT collections.
Source: Standart (14.08.2012)

In Q2 2012, GDP registers a 0.5% increase year-on-year In Q2 2012, Bulgaria’s gross domestic product (GDP) increased by 0.5%, compared to Q2 2011 and by 0.2%, compared to Q1 2012, showed express data of the National Statistical Institute (NSI). The nominal GDP reached BGN 19.077 bn and the value added amounted to BGN 16.438 bn. The service sector accounted for the largest 59.8% share in GDP, followed by industry with a 35% share. However, the gross value added (GVA) declined by 0.4% year-on-year in Q2 2012, according to NSI. GDP comprises GVA and adjustments (taxes and subsidies). As adjustments increase by 5.4% on an annual basis, domestic GDP increases, too. GVA includes the value produced in the sector of services, industries and agriculture. Agriculture and industries registered an increase on an annual basis of 7.2% and 1.8%, respectively. They have a small share in the economy and the sector of services, with its 1% drop on an annual basis, brought GVA to -0.4%, compared to Q2 2011. Actually, GVA reported a decrease for a second consecutive quarter, after declining by 0.2% in Q1 2012 on an annual basis. The foreign trade balance registered a BGN 1.17 bn deficit, or 6.2% of GDP. Exports of goods and services increased by 2.8% in Q2 2012 and imports of goods and services - by 6.9% year-on-year, showed NSI’s express data.
Source: Class (15.08.2012)

In Q2 2012, monthly household income per capita in Bulgaria stood at BGN 1,071, while costs per member of a family for the same period amounted to BGN 967, showed express data of the National Statistical Institute (NSI). According to statistics, from April to July, the average income increased by 13.8% and the average spending per household member rose by 11.2%, compared to the same period of 2011. Wages continued to be the main source of household income, accounting for 54.5%. The average earnings per household member amounted to BGN 583, or 18% more than the same quarter of last year. Within the same period of time, the share of wages in total family income increased by 2 percentage points. Pensions were the second most important source of income of Bulgarian households. However, their relative share in total income declined by 3.3% to 26.7%. In Q2 2012, incomes from pensions increased by 1.4% in nominal terms, compared to Q2 2011 and reached BGN 286 per household member. At the same time, earnings from self-employment per household member increased on average, compared to the same period of 2011 and reached BGN 81. Incomes from social security and welfare benefits contributed insignificantly to the formation of total household income in Q2 2012. These increased from BGN 32 to BGN 35 per household member for the period and their share in total family income structure remained unchanged, accounting for 3.3%. In Q2 2012, the share of earnings in cash of households in their total budget remained the same as in previous years, accounting for 98.1%, NSI reported.
Source: Class (17.08.2012)

Extraction industry on the rise in 2011 Extraction industry in Bulgaria continues its growth in 2011, though it couldn’t reach its pre-crisis levels. Yield of minerals reached 91.95 million of tones, which is by 13% more, as compared to 2010. Yet, it is still below the record 102.56 million reached in 2008. Value of produce increased by 21% to BGN 2.8 billion, which amounts to nearly 4% of gross domestic product (GDP). This is evident form data of The Bulgarian Chamber of Mining and Geology. Recovery in construction materials’ output is a good sign. Coal and metallic minerals remain leading for the sector. They insured 74% of extracted quantities. There is highest increase in volume of extracted liquid fuels- by 47.8%. Melrose resources and Oil and Gas Exploration and Production are the two companies that operate in the branch. Companies produced a total of 443 cubic meters natural gas and 22 thousand tones of oil. The considerable rise in gas is due to Melrose recourses’ work. Best production results are registered for Overgas Inc, owner of five of gas distributing companies, in the sub sector of liquid fuels. There is considerable increase in extraction of coals (mostly lignite). According to NSI’s preliminary data, extracted quantity went up by 21%. As a whole, extraction of coals is the second sub sector in value of production- a total of BGN 808.3 million for 2011. Production of metallic ores continues to have most impressive contribution to the country’s GDP. It provided for half of the total volume, registered by mining companies in the country. Last year companies of this sub sector ended up with produce, assessed to BGN 1.5 billion, or by 25% more, as compared to 2010. At the same time extracted ore increased by 4%, meaning that big part of the increase is due to prices. Ore-extracting companies are leading in revenues in the sector. Last year The Bulgarian Chamber of Mining and Geology awarded Elatsite-med as a top company. Revenues from gold extracting companies went up by more than 65% in 2011, and thus reached BGN 299.1 million.
Source: Capital (20.08.2012)

Unemployment in Bulgaria reaches 12.3% The share of unemployed people in our country has reached 12.3% of working-age Bulgarians. Discouraged people aged 15 to 64 are nearly 237,000, or 14.4% of the jobless people in this age group, exceeding 1,645,000. According to data of the National Statistical Institute (NSI) on the economic activity of the population in Q2 2012, the number of unemployed in the country was 409,500 - 243,000 men and 167,000 - women. The number of unemployed increased by 10%, compared to Q2 2011. A total of 228,000 Bulgarians, or 55.6% of all jobless people, have been unemployed for over a year. In comparison to Q2 2011, their number increased by 9.8%. The long-term unemployment rate rose by 0.6 percentage points to 6.9% in the second quarter of this year. In Q2 2012, the total number of employed people (aged over 15) reached 2,900,000 and their share of the population of the same age was 46.2%. The number of employed decreased by 32,300, or 1.1%, compared to the second quarter of 2011 and their relative share remained almost unchanged. Just over 1,500,000 (52.5%) of all employed Bulgarian in Q2 2012 were men and nearly 1,390,000 (47.5%) - women. Some 814,100, or 27.9%, were university graduates and 1,773,100 – with secondary education
Source: Class (22.08.2012)

Trips of Bulgarian residents abroad in July 2012 were 404,600, or 12.0% more than in June and 7.0% higher compared with July 2011, the National Statistics Institute informed. Increase of the trips of Bulgarian citizens compared to the same month of the previous year was reported to: Spain - by 92.1%, Austria - by 90.4%, Germany – by 63.9%, France - by 63.0%, and others. There is decrease in travel to Britain - by 56.1%, Serbia - by 31.9%, and Belgium - 22.6%. The largest share of total trips of Bulgarian residents abroad form the trips for other purposes (visits, training, attend cultural and sporting events) - 45.0%, followed by holiday trips - 34.9%, and an business trips - 20.1%.
Source: 24 chasa (28.08.2012)

NSI: Business climate in all sectors of the economy deteriorates in August The National Statistical Institute (NSI) reported an unfavourable business climate in all sectors of the economy - industry, construction, retail trade and services - in August. Polls among managers from these four sectors showed that the total index fell by 3.3%, compared to July and stood at the level of 2001. In industry, the indicator decreased by 2.8 percentage points, compared to July, the main problem being the declining number of orders from abroad. Entrepreneurs also pointed out the uncertain economic environment and the reduced consumption in the country as a problem for the development of their businesses. Expectations about selling prices are for these to remain unchanged over the next three months. Construction is again a “leader” in terms of negative expectations and has registered a 6.9% decline within a month. Construction activity has slowed down despite the fact that the summer is a busy season for the sector and the number of the people employed in it has decreased, too. Financial problems - difficult access to credit and the lack of investment - are the main problems in the sector. Forecasts about the employment rate in the sector are also pessimistic. The problems in retail trade arise from the shrinkage in consumption and strong competition, statistics showed. This decline in the business climate in this sector is of 1.7 percentage points, compared to the previous month, due to the more moderate estimates of retailers about the business situation of enterprises. However, their expectations for the next six months are more favourable. Slight optimism has been also registered in the forecasts for orders to suppliers and the volume of sales for the next three months. In the sector of services, the business climate reported a decrease of 2.0 percentage points within a month. The uncertain economic environment and competition in the sector remain the major factors hindering the development of business in the sector. However, expectations regarding the demand for services over the next three months are higher but this will not be accompanied by additional recruitment of personnel.
Source: Class (29.08.2012)

FDI in Bulgaria's Non-Financial Sector Down 2.2% in 2011 Y/Y According to preliminary data the foreign direct investments in the non-financial sector in Bulgaria as of December 31 2011, amounted to EUR 21 616 M, which is a 2.2% decrease, compared to 2010. The flash data was released Thursday by the National Statistics Institute, NSI. The largest volume of the foreign investments was made in the industry sector - EUR 8 741 M and in the service sector (wholesale and retail trade; repair of motor vehicles and motorcycles; transport, communication and services; accommodation and food service activities) - EUR 4 121 M. In 2011, these activities formed 59.5% of the total foreign direct investments, as their relative share increased by 3.4 percentage points over the previous year. The foreign direct investments in the construction sector fell by 40%, compared to 2010, and amounted to EUR 775 M. According to preliminary data, in 2011 the actual expenditure on acquisition of tangible fixed assets in all sectors of the economy amounted to BGN 17 763 M, as was reported an increase of 9.5% compared with the previous year. The largest volume of investments on tangible fixed assets was invested in the sector of industry - BGN 5 428 M and in the service sector (wholesale and retail trade; repair of motor vehicles and motorcycles; transport, communication and services; accommodation and food service activities) - BGN 3 961 Million. In 2011 these sectors formed 52.9% of total expenditure on fixed assets. The investment in fixed assets in the construction sector reached BGN 1 147 M, less by 16.2% than 2010. In 2011, the structure of expenditure on acquisition of tangible fixed assets by kind was changed. The investments made for buildings and construction equipment decreased by 2.1 percentage points and accounted for 45.4% of the total volume of investments on tangible fixed assets for the current year. However, the expenditure for the purchase of land increased by 1.8 percentage points and the costs incurred for the acquisition of means of transport - by 1.0 percentage points, which formed 8.5% and 9.9% respectively of total investments of tangible fixed assets. Foreign direct investment is an investment, which includes long-term relationship, referring to a significant degree of influence of a resident of a foreign economy (foreign direct investor) on the management of an enterprise - resident of the Bulgarian economy (investment enterprise). Direct investment comprises not only the initial transaction establishing the relationship between the investor and the enterprise but also all subsequent transactions between them.
Source: investor.bg (31.08.2012)

Extracting and processing sectors - with the biggest share in Bulgaria’s industry Non-financial enterprises in Bulgaria produced value added of BGN 34.363 bn in 2011, showed preliminary data of the National Statistical Institute (NSI) published on the website of the institution. A total of 309,892 companies employing 1,913,087 people submitted reports on their operation. Expenses for investments and acquisition of tangible fixed assets stood at BGN 13.933 mln in 2011, specified NSI. The value added produced by industrial enterprises reached BGN 13.950 bn last year, statistics showed. The share of the extracting sector rose by 1.7 percentage points, reaching 11.3%. Growth was also registered in the processing sector - of 0.4 percentage points, reaching 64.9%. The share of the production and distribution of electricity and the gas sector shrank by 1.8 percentage points to 19.1%. A 0.3% decrease was reported by the water supply, sewerage, waste management and recovery sector. The number of people employed in the industrial sector reached 631,296 last year, accounting for the largest share - 33.0% - of the total number of non-financial enterprises’ employees.
Source: Class (31.08.2012)

NSI: The increase in energy prices in July results in 1.9% higher producer inflation The increase in energy prices resulted in 1.9% higher producer inflation in Bulgaria in July, compared to June, showed preliminary data of the National Statistical Institute (NSI). The new prices of electricity and gas as of July 1 inflated producer prices in all sectors of the economy. On an annual basis, producer prices on the domestic market rose by 4.5%, NSI reported. In the processing industry, producer prices increased by 1.3%, compared to June 2011. A more significant increase was registered in the production of textiles and textile articles, except apparel - 10.6%, the manufacture of chemical products - 8.4% and the manufacture of tobacco products - 7.1%. A decrease was observed in the production of basic metals - 10.6% and the manufacture of other non-metallic mineral products - 0.9%. The year-on-year price increase in the processing industry was 2.4%, in the energy sector - 10.6% and in the extracting industry there was no change. The highest price rise was registered in chemical products - 8.4%, tobacco products - 8.1% and drinks - 5.0%. A price decrease was reported in the manufacture of basic metals – 3.4% and electrical equipment - 1.6%. The overall index of producer prices, which includes exports as well, rose by 1.8%, compared to June and by 3.1%, compared to July 2011, NSI data showed.
Source: Class (31.08.2012)

Some 2.2% decline of FDI in Bulgarian companies in a year Foreign direct investments (FDI) in the non-financial sector stood at ˆ21.616 bn at the end of 2011, registering a 2.2% decline, compared to 2010, showed preliminary data of the National Statistical Institute (NSI). The amount of FDI in industry was the biggest - ˆ8.741 bn. In the service sector, including trade, repair of motor vehicles and motorcycles, transportation, storage, postal services and the hospitality industry, FDI totaled ˆ4.121 bn. In 2011, industry and services accounted for 59.5% of the total volume of FDI and their share increased by a total of 3.4 percentage points over the previous year. Investments in construction decreased by 40% last year, compared to 2010 and amounted to ˆ775 mln. In 2011, expenditures for acquisition of tangible fixed assets in all sectors of the economy stood at ˆ17.763 bn, registering an increase of 9.5% over the previous year. Again, the biggest amount of money was invested in the industrial sector – BGN 5.428 bn. Investments in the service sector stood at BGN 3.961 bn. In 2011, these two sectors accounted for 52.9% of the total volume of expenditures for tangible fixed assets.
Source: Class (31.08.2012)

Investment companies report the highest turnover and health insurers - losses at the end of 2011 Last year, investment companies achieved the highest growth of turnover and health insurers were in the red, showed data of the National Statistical Institute (NSI) published on the website of the institution. In 2011, the number of companies specialised in investment activities, including investment companies, investment intermediaries, management companies, mutual funds and the special investment purpose public limited companies (SIPPLC) totaled 249. According to preliminary data, the balance sheet value of their assets stood at BGN 9.024 bn at the end of 2011, or 32.9% up year-on-year. Attracted assets from customers (securities and cash) were BGN 6.477 bn, having increased by 39.5% year-on-year. The turnover of insurance companies at current prices in 2011 stood at BGN 1.710 bn, reporting an increase of 0.8% over the previous year. Life insurance registered a higher increase in turnover - 3.8% - and general insurance – of 0.2%. In 2011, insurance companies reported positive financial results from their operation, amounting to BGN 71 mln, or BGN 62.9 mln up from the previous year. The profit of general insurance companies reached BGN 61.3 mln and that of life insurers amounted to BGN 9.7 mln.
Source: Class (31.08.2012)

Record high unemployment in the EU; 25 million people with no labour income “Unemployment in the EU last month was 11.2%, or more than 25 million people in the entire EU have no job at the moment. That is extremely disturbing and shows that priority should be given to job creation instead of restriction measures,” Ognian Zlatev, Head of Communication Activities at DG for Employment, Social Affairs and Inclusion at the European Commission, told BNR on Sunday. “Such a high level of unemployment was reached for the first time in the EU,” Mr. Zlatev added. These figures are related to young people's unemployment. Young people are twice as much at risk of not finding a job than more experienced workers, according to Mr. Zlatev. “The EU hopes and tries to encourage youth mobility among people looking for a job. This mobility is not related to 'a brain drain' but is aimed at creating opportunities for people to look for a job relevant to their qualification in other countries. You could go abroad to obtain a qualification and then return to your country to apply that qualification there,” Mr. Zlatev added. “The government has set itself a goal to absorb the funds it has. We cannot see the results overnight. These funds should serve to provide young people with additional opportunities to work as apprentices or to encourage employers to hire young people. These measures are not only on paper and the situation is not out of control,” Mr. Zlatev pointed out.
Source: Class (03.09.2012)

Unusual increase in wholesale food prices The prices of wholesale food products increased in an unusual way this summer, as their index went up to 1.379 points in August, or up 9% from the same month in 2011, the Commodity Exchanges and Wholesale Markets State Commission informed, as quoted by BIA on Tuesday. A general trend of appreciation of staple food products, dairy products, fruits and vegetables was detected in the July-August period of 2012. In August, the prices of flour, oil and eggs rose by 3.5%-6.8% month-on-month. The price hike in dairy products, sugar, bean plants and some meat products over the month amounted to about 2%-3%. The price of perishable meat saw a slight decline, while the prices of rice, mackerel, poultry and minced meat remained unchanged from the previous month. The price of eggs went up by 29% from last August on an annual basis, while that of beans rose by 20%. The prices of sugar, rice, cheese, mackerel and sausages fell by 5%-13% on an annual basis. The trends observed in the prices of vegetables are not typical for this time of the year, said the Commission. In August, wholesale prices of filed and greenhouse cucumbers were some 30-40% higher and those of field and greenhouse tomatoes – 4-5% higher. The price increase of potatoes was 11% on a monthly basis. The prices of green peppers registered some 30% decrease from July and grapes prices declined by 43% on average. On an annual basis, the only significant exception from the price increase was garlic. Prices of field and greenhouse tomatoes doubled, increasing by 100%, those of filed and greenhouse cucumbers - by 70%.
Source: Class (05.09.2012)

Bulgaria's exports grow by 30.2% in 2011 Bulgaria exported goods to the total amount of BGN 39.6 bn in 2011, an increase of 30.2% from the year before, according to data from the National Statistics Institute (NSI). Compared to the same month the previous year, January marked the biggest export growth (71.1%), while December was on the opposite side of the performance spectrum with 13.8%. Imports added up to BGN 45.8 bn in 2011, or 21.6% more than in 2010. Imports increased every single month last year on an annual basis, with the highest and the lowest result in January (47.7%) and December (7.3%), respectively. Maintaining the established trend, imports exceeded exports in 2011. The foreign trade balance (exports, as calculated in FOB prices, minus imports, as calculated in CIF prices) showed a deficit of BGN 6.1 bn for 2011, or BGN 1.1 bn less than the figure for 2010. On FOB/FOB basis (after subtracting the cost for shipment and insurance of imported cargo), the deficit for 2011 was BGN 4.2 bn. A break-down of Bulgarian exports using the Standard International Trade Classification shows that each sector, without exception, shipped more goods than in 2010. Exports falling in the category "Crude materials, inedible goods, except fuels" and "Animal and vegetable oils, fats and waxes" topped the growth ranking with 50.2% and 45.3%, respectively. "Crude materials, inedible goods, except fuels" was also the category with the biggest import growth (41%), followed by "Mineral fuels, lubricants and related materials" (24%) and "Animal and vegetable oils, fats and waxes" (24%). In 2011, Bulgarian exports to EU member-states grew by 33.1% from the previous year to BGN 24.7 bn. The country's main trade partners, Germany, Romania, Italy, Greece, Belgium and France combined accounted for 74% of exports to the EU. Exports to Malta and Denmark recorded staggering increases of 399.2% and 134.8%, respectively, while shipments to Slovenia and Luxembourg fell.
Source: Class (11.09.2012)

Construction and industry stir up According to preliminary data of the National Statistical Institute (NSI), in July 2012, the production index in the Construction sector calculated on the basis of seasonally adjusted data was 1.5% above that in June. Calendar adjusted data showed an increase of 3.1% in the construction output in July 2012, compared to the same month of 2011. In July 2012, the index of construction output based on seasonally adjusted data was above the level during the previous month, the production of civil engineering having increased by 2.2% and that of building construction - by 1.1%. According to NSI’s preliminary data, in July 2012, the industrial production index based on seasonally adjusted data rose by 0.4%, compared to June 2012. In July 2012, the calendar adjusted index of industrial production rose by 0.4%, compared to the same month of 2011. In July 2012, the production and distribution of electricity, heat and gas registered some 13.1% increase, compared to the previous month. The increase in the extracting industry was 7.3% and the manufacturing industry reported a decrease of 1.4%. A more significant decrease in the processing industry was observed in the manufacture of chemical products - 11.3%, in the repair and installation of machinery and equipment - 10.2%, in the production of clothing - 8.1%, of tobacco products - 5.5%, of textiles and textile products, except apparel - 4.7%.
Source: Class (11.09.2012)

Some 60% occupancy rate of hotels in July The overall occupancy rate of hotels in July was 59.7%, the highest being that of 4- and 5-star hotels - 68%, followed by 3-star hotels - 63.4%, while that of 1- and 2-star hotels was just 40.5%. In July 2012, a total of 2,517 shelters and accommodation establishments with more than 10 beds - hotels, motels, camping sites grounds, rest-houses, etc. welcomed guests in Bulgaria, NSI specified. The 121,300 rooms in them offered 271,900 beds. As a whole, the occupancy rate of beds increased by 13.6%, compared to the previous month. The increase was greatest at 3-star hotels - 15.1%. The total number of overnights at all accommodation places (hotels, motels, rest-houses, etc.) was 4,845,000, out of which 1,150,000 were Bulgarian citizens and 3,695,000 - foreigners. The number of accommodated people increased by 29.4%, compared to June, reaching 917,800. The share of Bulgarians was 36.7% and most of them (77.4%) stayed at 1-, 2- or 3-star hotels, for an average of 3.5 nights. The number of accommodated foreigners was 580,900 and 55.9% of them stayed at 4- and 5-star hotels for an average of 6 nights. Revenues from overnights in July reached BGN 192 mln – BGN 159.3 mln from foreigners and BGN 32.8 mln from Bulgarians. Total revenues increased by 66.2%, compared to June, revenues from foreigners – by 72% and these from Bulgarian citizens - by 42.7%.
Source: Class (11.09.2012)

Bulgaria saw a monthly inflation of 0.5% in August, according to the country's National Statistical Institute. The inflation rate since the beginning of the year (August 2012 compared to December 2011) was 2.6% and the annual inflation in August 2012 compared to August 2011 was 3.9%. The annual average inflation, measured on the basis of the consumer price index over the last 12 months (September 2011 - August 2012) compared to the previous 12 months (September 2010 - August 2011), was 2.5%. The harmonized index of consumer prices in August 2012 compared to July 2012 was 100.6%, i.e. the monthly inflation was 0.6%. The inflation rate since the beginning of the year (August 2012 compared to December 2011) was 2.4% and the annual inflation in August 2012 compared to August 2011 was 3.1% The annual average inflation, measured by HICP, in the last 12 months (September 2011 - August 2012) compared to the previous 12 months (September 2010 - August 2011) was 2.3%.
Source: Capital (13.09.2012)

Monthly inflation of 0.5% for August and 2.6% since the beginning of 2012 In August, consumer prices increased by 0.5%, compared to July, the National Statistical Institute (NSI) announced on Wednesday. The inflation rate is 2.6% since the beginning of the year and 2.5% for the last 12 months. Year-on-year growth in prices has reached 3.9%, remaining for a second straight month over 3% after being a little over 1.5% four months ago. The largest increase in August was registered by transportation costs (2.9%), food and beverages (0.9%), while prices of clothing and footwear dropped most significantly - 3.3%. At the same time, prices of medical and dental services rose by 0.1% and 0.2%, respectively, and those of drugs and other pharmaceutical products by 0.1%. Prices in the so-called small consumer basket (including the 100 indispensable goods and services with the weight they have in the budgets of the poorest 20% of households) increased by 0.8%, compared to July. The inflation rate of the goods and services in the small consumer basket since the beginning of 2012 is 3.1%. The prices of foods in the small basket rose by 1.2%, those of non-food products by 0.2% and these of services by 0.1%. According to the EU methodology (the so-called harmonised index of consumer prices), the inflation was 0.6% in August and 3.1% on an annual basis. According to this methodology, the inflation rate since the beginning of the year is 2.4% and 2.3% for the last 12 months until August, compared to the previous 12 months.
Source: Class (13.09.2012)

Bulgarian firms have an 8% rate of overdue liabilities, compared to an EU average of 5% Bulgarian businesses report record losses from overdue payments so far this year. Delayed contractual receivables exceed 8%, compared to an average of 5% for Europe as a whole, according to an EOS Group/Ipsos Social Research Institute survey among 2,200 companies in 10 European countries. Of this group, Bulgaria is the country with the second highest rate of payments in default. Data shows that only 66% of financial liabilities are paid on time, with the share showing signs of further decline, said Raina Mikova-Todorova at EOS Matrix Ltd. Official figures also reveal that only half of Bulgarian companies check their partners' and customers' solvency. Faced with difficulties in collecting their payments, most firms are slow to contact professionals and collection agencies. EOS Matrix's Svetla Petrova says firms often lack the documents to verify accumulated liabilities such as contracts, invoices, record of proceedings etc. In many cases, the debtor turns out to be in bankruptcy proceedings or to have filed for bankruptcy retroactively, complicating payment collection. Of the countries surveyed, Romania is the only one with a larger share of receivables written off, with almost 10%. The bottom of the table is occupied jointly by the UK and Germany, each with a bad intercompany debt ratio of 2%. An overwhelming share of Bulgarian corporate defaults come from industry, followed by the trade and service sectors. Greeks form the largest group of debtors with a bad record, Spain also being in the Top 3.
Source: Class (13.09.2012)

Labor Costs in Bulgaria Up 4.8% Q2 2012 Y/Y In the second quarter of 2012 the total hourly labor cost in Bulgaria rose by 4.8%, compared to the second quarter of 2011. These flash figures were released Monday by the Bulgarian National Statistics Institute, NSI. The total hourly labor cost grew by 2.5% in industry and by 8.9% in services. In construction the total hourly labor costs decreased by 2.1%. The breakdown by economic activities showed that the highest annual growths in total labor costs were recorded in 'Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles' - 16.3%, 'Other Service Activities' - 14.7% and 'Professional, Scientific and Technical Activities' - 10.8%, while the lowest annual growths were registered in 'Public Administration and Defense; Compulsory Social Security' and 'Financial and Insurance Activities' respectively 0.5% and 2.0%. The highest decrease in total labor costs was observed in 'Electricity, Gas, Steam and Air Conditioning Supply' by 3.9% and 'Construction' by 2.1%. In the structure of the total labor costs, the wages and salaries costs per hour worked grew by 5.9% in comparison with a year earlier, while the other (non-wage) costs rose by 0.2%. Among the economic activities in the second quarter of 2012, compared to the second quarter of 2011, the growth rate of wages and salaries component ranged from (-3.9%) in 'Electricity, Gas, Steam and Air Conditioning Supply' to 17.4% in 'Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles'. The Labor Cost Index is a short-term indicator measuring the quarterly development of hourly labor costs incurred by the employers as a result of engaging the labor work force. The quarterly survey on employees, hours worked, wages and salaries and other expenditures paid by the employer is the main source used for the labor cost index data calculation. Labor cost index (LCI) is defined as a Laspeyres index of labor costs per hour worked. Since the first quarter of 2009 it is calculated broken down by economic activities at section level according to the new NACE Rev.2 classification and with a reference year 2008=100. Indices are based on Regulation (EC) 450/2003 of the European Parliament and of the Council according to which requirements Labor costs indices shall be provided separately for the following three labor costs categories: Total labor costs (TOT), which includes wages and salaries paid by the employer in cash or in kind, employers' actual and imputed social contribution plus taxes regarded as labor costs; Wage and salary costs (WAG) covers wages and salaries paid in cash or in kind; Labor costs other than wages and salaries (OTH – non-wage costs) include the employers' actual and imputed social contribution plus taxes regarded as labor costs;
Source: Capital (18.09.2012)

Labour costs up by 4.8% Share on twitterShare on emailShare on printMore Sharing Services In Q2 2012, the total hourly labour costs in Bulgaria rose by 4.8% on an annual basis, National Statistical Institute (NSI) data showed. The highest increase of hourly labour costs were in the service sector - 8.9%, followed by industry - 2.5%, while these in construction reported a 2.1% decline. In Q2 2012, the highest growth in total labour costs over the same period of the previous year was registered in the following activities: “Trade; Repair of Motor Vehicles and Motorcycles” - 16.3%, “Other Activities” - 14.7% and “Professional Activities and Scientific Research” - 10.8%, and the lowest - in “State Administration” and “Financial and Insurance Activities – 0.5% and 2%, respectively. The greatest reduction in total labour costs was recorded in the economic activities: “Production and Distribution of Electricity and Heating Energy and of Gaseous Fuels” by 3.9% and in “Construction” - 2.1%. In the composition of total labour costs, these for remuneration per hour worked rose by 5.9%, compared to Q2 2011, while the other costs (except these for wages) increased by 0.2%.
Source: Class (18.09.2012)

Bulgaria 2nd in EU by Annual Growth in Construction Production Bulgaria is one of the three EU Member States to register an annual increase in production in the construction sector in July 2012, according to Eurostat data. In the construction sector, production in Bulgaria grew by 3.0% in July 2012 as compared to July 2011. Bulgaria is only preceded by Hungary, which scored a year on year increase of 7.7%, and is followed by Germany, where production in the construction sector went up by 2.2% on the year. According to data of the EU's statistical office, the largest annual declines in production in July 2012 were registered in Slovenia (-18.3%), Portugal (-18.2%), Spain (-16.1), and Italy (-14.2%). Compared to July 2011, production in July 2012 fell by 4.7% in the euro area and by 6.1% in the EU27. In July 2012, building construction dropped by 4.6% year on year in the euro area and by 5.4% in the EU27. Among the Member States for which data are available for July 2012, production in construction fell in ten and rose in five. The largest declines were recorded in Italy (-2.2%), Spain (-2.1%), and Switzerland (-1.1%), while the highest increases were registered in Hungary (+8.7%), Germany (+1.9%), Bulgaria (+1.6%) and the Czech Republic (+1.6%). In July 2012, production in the construction sector fell by 0.3% in the euro area and by 0.2% in the EU27 as compared to the previous month. In July 2012, building construction declined by 0.8% on the month both in the euro area and in the EU27.
Source: profit.bg (19.09.2012)

Building permits twice as much as completed homes National Statistics Institute ‘s quarterly surveys show for the second quarter of the years that homes with twice as large built-up area granted with a building permit amounted to 472 sq. m, as compared with completed homes in the same quarter - 184 thousand square meters. Homes which construction started in Q2/2012 are as no less than 251 thousand square meters. The number of commissioned newly constructed buildings decreased by 26.3% for the second quarter of 2012, as compared to Q2/2011. Their number is 520. Their total area is 184.1 thousand square meters, or less by 34.9%, as compared to their number one year before. Newly commissioned buildings are most numerous in Varna-115 buildings with 536 homes and in Bourgas-77 buildings with 661 homes. Most spacious is the average home in Sofia-142.8 square meters, while the smallest is in Vidin-36.0 square meters. Construction of 683 residential buildings with an area of 251 701 square meters was started. Number of initiated administrative buildings is 20 with a total area of 5708 square meters. On an annual basis there is a decrease in residential buildings by 6.7%, while in administrative it is by 44.4%.
Source: Construction City (24.09.2012)

Some 150,000 bribes a month given in Bulgaria “The monthly level of bribery in Bulgaria is some 2 or 3 times higher than in the EU as a whole,” Alexander Stoyanov, Director of Research at the Centre for the Study of Democracy, said at a news conference This means that there are around 150,000 corrupt transactions per month on average and their number is beyond the capacity of any controlling institutions of the State. According to the experts of the Centre for the Study of Democracy, a much more reasonable approach would be to change the environment in which society and public institutions operate. “This means the restructuring of interests in various sectors and regions. The people pursuing their own interests can prevent corruption,” stated Stoyanov. The survey conducted by the Centre for the Study of Democracy showed that, in most cases, the administration was the initiator of corrupt transactions. “The conduct of the administration is key to the existence or abolition of corrupt deals. In recent years, we have observed increasing resistance to corrupt practices but also – an increasing number of people who go to institutions with the mindset that they will give a bribe,” specified Stoyanov.
Source: Class (25.09.2012)

UniCredit: The Average Salary in Bulgaria May Reach 805 Levs The average monthly salary in Bulgaria will grow to 805 levs, (413 euros) in 2013, the UniCredit Bulbank's economic analysis for the last trimester reads. The average pay rise that the bank forecasts is 7.5%. Unicredit Bulbank's analysts continue their highly-optimistic analysis saying that in 2014 the average monthly salary in Bulgaria will increase by another 7.9% to 869 levs (446 euros). In their view, the decision of the government to increase the minimum monthly salary from 290 to 310 levs, as well as the retirement payments, frozen for the past two years, is a step in the right direction, which should lead to a three-percent increase in the nominal annual incomes of the households in Bulgaria. The conclusion of their report is just as optimistic: the domestic consumption in Bulgaria will increase considerably over the next two years.
Source: Standart (25.09.2012)

Bulgarians’ trips abroad increase by 3.8% in a year Trips of Bulgarian citizens abroad registered a 3.8% growth in August 2012, compared to the same month of last year, the National Statistical Institute (NSI) reported. Our compatriots were increasingly travelling to Italy. Trips to that country rose by almost 145.2%. Another preferred destination during the period was Austria, trips to which increased by 131.4%. Next on this list come countries like Spain with a 72.3% growth, the UK (58.6%) and Germany (45.6%). According to NSI, vacations and tours accounted for 38.8% of all trips abroad and business trips – for 17.6%. The largest share in the total number of Bulgarians’ trips abroad were those for other purposes (staying as guests, education, attending cultural and sports events, etc.) - 43.6%. Visits aboard for holidays and tours and those for other purposes registered an increase of 48.4% and 30.2%, respectively, compared to August 2011. Business trips declined considerably – by 52.1%. In August 2012, foreigners’ visits to Bulgaria totaled 1,638,000, or 3.3% more than in the same period of last year. An increase was registered in the trips for all monitored purposes, the highest growth being reported in business trips - 22%, followed by visits for other purposes - 3.4%, and those for vacations and tours - 2%.
Source: Class (28.09.2012)

Bulgaria's Business Worried about the Future, Expects Inflation Bulgaria's business is quite worried about its future in the coming months and the retailers expect a hike in prices, shows a survey of the National Statistical Institute (NSI) carried out among company managers. The business climate in Bulgaria in September remains unchanged and this is due to the current better situation but it is connected with negative expectations for the future. The business climate in the sector of industry is unchanged though there is an improvement of the production activity. The number of orders decreases which brings negative expectations for the coming months. The business climate in the construction sector registers an improvement but the number of clients with delayed payments also increases. The forecasts are that the prices in industry and construction sectors keep the same. The company managers in the field of retail trade expect a hike in prices in the next three months and their forecasts for the coming three months are more reserved. The sector of services is also pessimistic for the next three months.
Source: Standart (29.09.2012)

NSI: Home expenses increase by 9.7% The National Statistical Institute (NSI) registered the highest increase in expenses in the Home group (rents, maintenance and repairs), water, electricity, gas and other fuels bills - 9.7%. A price increase has been registered in all groups with the exception of Leisure, Recreation and Culture, Clothing and Footwear, and Communications. In August 2012, the harmonised index of consumer prices rose by 3.1%, compared to the same month of 2011, NSI reported. The index of producer prices on the domestic market increased by 4.5% in July 2012, compared to the same month of 2011. Prices also rose in the manufacturing industry - by 2.4%, in the production and distribution of electricity, heating energy and gas - by 10.6%, while prices in the extracting industry remained unchanged at the level of the corresponding month of 2011. In July 2012, the general consumer confidence index rose by 7.8 percentage points, compared to April’s level, the increase being of 9.1% for the urban population and of 4.6% for the rural population. The opinion of consumers on the development of the overall economic situation in the country in the last twelve months and their expectations for the next twelve months are less negative than in the previous survey.
Source: Class (02.10.2012)

Foreign direct investment increases more than two- fold to ˆ846.2 mln Foreign direct investments in the period January to July 2012 were ˆ846.2 mln (2.1% of forecast GDP for 2012) against ˆ376.5 mln (1% of GDP) for the same period in 2011. Direct investments abroad in the period January to July 2012 were ˆ103.3 mln compared to ˆ88.5 mln for the same period in 2011. For the period January - July 2012 portfolio investments - assets – increased by ˆ 4.7 mln, compared to an increase of ˆ31.3 mln for the same period of 2011. Portfolio investments – liabilities – increased by ˆ580.1 mln against a decrease of ˆ170.8 mln for the same period in 2011. According to estimates by industry executives, in September 2012, compared to August, there was a reduction in orders from abroad by 4.2 points, according to data from the National Statistical Institute. For the period January - July 2012 the current account is negative and amounted to ˆ487.7 mln (1.2% of forecast GDP for 2012) at a surplus of ˆ291.8 mln (0.8% of GDP) for the period January to July 2011. The trade balance for the period January - July 2012 was negative amounting to ˆ2,417 mln (6.1% of forecast GDP for 2012) at a deficit of ˆ1,047.9 mln (2.7% of GDP) for the same period in 2011. Exports of goods (FOB) for the period January - July 2012 was ˆ11,753.8 mln, increasing by 1.7% (ˆ191.9 mln) compared to the same period in 2011 (ˆ11,561.9 mln). The growth of exports from January to July 2011 was 38.3% year-on-year. Imports of goods (FOB) for the period January-July 2012 was ˆ14,170.9 mln, increasing by 12.4% (ˆ1,561.1 mln), compared to the same period in 2011 (ˆ12,609.8 mln). Growth of imports for January-July 2011 was 26.7% year-on-year. External balance of goods and services in the second quarter of 2012 was negative amounting to BGN 1,363 mln. Imports of goods and services grew by 8.6%, compared to the corresponding quarter of the previous year, while exports increased by 3.9%.
Source: Class (02.10.2012)

Q2 2012 GDP registers 0.5% growth, compared to Q2 2011 According to preliminary data of the National Statistical Institute (NSI), Bulgaria’s gross domestic product (GDP) amounted to BGN 19,007 mln at current prices, or BGN 2,602 per capita. At the average quarterly exchange rate of BGN 1.52636 for USD 1, GDP amounted to $12,452 mln, or $1,705 per capita. Calculated in Euros, GDP amounted to ˆ9,718 mln, or ˆ1,330 per capita. According to seasonally adjusted data, the actual GDP growth for Q2 2012, compared to Q2 2012 was 0.5%. According to NSI’s business surveys, in September 2012, the confidence in industry indicator dropped by 0.5 percentage points, compared to August. In July 2012, the calendar adjusted index of industrial production rose by 0.4%, compared to the same month of 2011 (according to preliminary data). An increase was registered in the production and distribution of electricity, heating energy and gas - 3.1% and in the extracting industry - 1.5%, while the processing industry decreased by 1.0%.
Source: Class (02.10.2012)

The International Monetary Fund has predicted a 1% GDP growth in Bulgaria in 2012, increasing its earlier estimate of 0.8%. The country's unemployment rate is to reach 12.5% at the end of the year, IMF believes. "Our forecast is for the real GDP growth to reach 1% in 2012 courtesy of the stronger domestic demand boosted by the European Union's structural funds," Catriona Purfield, Deputy Division Chief at the International Monetary Fund has explained, as cited by the Bulgarian Telegraph Agency. The Bulgarian economy will expand by 1.5% as exports recover, the IMF has also said. The IMF has urged the Bulgarian government to maintain its budget deficit at 1.25% of GDP next year, too. "Strong buffers and steadfast policy implementation have allowed Bulgaria to maintain stability in a challenging environment," the IMF has observed, as cited by Bloomberg. "However, growth remains weak, unemployment is high, and the economy remains exposed to external risks, particularly from the euro area crisis." In June, the World Bank revised sharply downwards forecasts for Bulgaria's economy, estimating it is to expand just 0.6% this year. At the beginning of May the European Commission slashed its forecast for Bulgaria's economy, estimating it is to grow just 0.5% this year. The European Union executive previously estimated that the economy of the Balkan country will grow 1.4% this year due to worsening growth prospects in key trading partners across Europe and stagnant domestic demand. A month earlier Bulgarian analysts and institutions unanimously cut their growth forecast for 2012 to just below 1.5% instead of the previously forecast 2-3%, citing slumping exports and stagnant domestic demand. The central bank BNB estimated Bulgaria's economic growth to slow-down to 0.7% in 2012, citing the sovereign-debt crisis in the euro area. Bulgaria's economy expanded by 1.7% in 2011.
Source: econ.bg (03.10.2012)

Manufacturing inflation in Bulgaria - the highest in the EU Manufacturing inflation in Bulgaria was the highest in the EU in August, announced the European statistical office Eurostat, referring to the preliminary data submitted by the national statistical institutions. In Bulgaria, the growth of producer prices for August was 7.1% on an annual basis. Next comes Greece with a manufacturing inflation of 6.8%, followed by Cyprus (6.7%). The lowest growth was recorded in Malta and Slovenia (0.8% in both countries) and Austria (1.1%). The only annual price decrease in industry, registered by statistics in August, was in Sweden (-0.5%). As a whole, producer prices rose by 2.7% on an annual basis in the Eurozone. Prices in the energy sector rose by 2.4% and 3.2%, respectively. Compared to July, the highest growth of industrial inflation was registered in Denmark (2.9%), the UK (1.8%) and Finland (1.7%), and the lowest - in Slovenia (0.1%) and Lithuania (0.3%). Bulgaria shares the 5th and 6th place with Romania (1.4% in both countries). Prices remained unchanged in Belgium, Hungary and Malta. The increase in producer prices (excluding the energy sector) in the Eurozone within a month - from July to August - was 1% and 1.1% in the entire EU. Inflation in the energy sector rose by 7.9% and 7.2%, respectively.
Source: Class (03.10.2012)

IMF: Bulgarian Economy Set to Grow by 1.5% According to an analysis of the International Monetary Fund (IMF), Bulgaria's economy is expected to grow by one percent in 2012. The forecast was made at a news conference, at which the IMF regular mission in Bulgaria presented their conclusions. "The real term-growth of Bulgaria's GDP will reach one percent in 2012, owing to a stronger home demand," said Mrs. Catriona Purfield, head of the IMF mission in Bulgaria. The expected economic growth in Bulgaria in 2013 is 1.5%, owing to a planned EU funds absorption, revitalization of the domestic business activity and restoration of the export rate. The average annual inflation in Bulgaria for 2012 will reach 2.5%, because of the higher prices of foods and fuels, the IMF report reads further. "Each budget surplus should be used to increase the country's fiscal reserve," the lender also recommends. The IMF forecasts an average unemployment rate of 12.5% this year, which can be reduced by more drastic structural reforms, including encouragement of the business to hire young people, reduction of the early retirement options and reforms in the public healthcare system. The companies in Bulgaria should be deprived of the right to file backdated bankruptcy Mrs. Purfield said.
Source: Standart (03.10.2012)

Bulgaria’s economic growth to reach 1.5% in 2013 “The International Monetary Fund (IMF) expects Bulgaria’s gross domestic product (GDP) to rise by up to 1.5% in 2013,” Finance Minister Simeon Djankov said before the Council of Ministers meeting on Wednesday. According to Djankov, the GDP may increase due to the stronger domestic demand and the better absorption of EU structural funds. However, economic growth and an increase in the employment rate will require even bolder reforms. Higher capital expenses for basic infrastructure, ensured via a still better absorption of EU funds, is the best stimulus for growth, IMF specified. “That is interesting because IMF does not usually give details (and I witness it for the first time in the 18 years I have been working with this institution) or suggest steps for enhancing growth,” added Djankov. Bulgaria’s actual GDP growth will reach 1% in 2012 and will increase to 1.5% in 2013, IMF predicted on Tuesday. “Strong buffers and consistent stringent policy allowed Bulgaria to maintain stability in a complex environment. Nevertheless, economic growth is still weak, the unemployment rate is high and the economy remains exposed to external risks, especially in relation to the crisis in the Eurozone,” said the head of the IMF Mission to Bulgaria Catriona Purfield. According to IMF data, the growth of the Bulgarian economy in 2012 is due to the stronger domestic demand and the absorption of EU structural funds, and in 2013, it will be a result of the recovery in exports.
Source: Class (04.10.2012)

The Government projects a BGN 1.796 bn increase in budget revenue The revenue side of the budget for 2013 will increase by BGN 1.796 bn, compared to 2012 and is expected to total BGN 30.54 bn (37.5% of GDP), according to the Finance Ministry estimates of the 2013 draft budget, published today. The money for pensions will increase by over BGN 585 mln as of April 1, 2013. At the same time, the insurance contribution to the Pension fund for the people working in the sphere of defence and security will increase by more than 20 percentage points (BGN 218 mln). Social spending will grow by over BGN 790 mln. The money earmarked for social benefits and compensations will rise by BGN 135 mln, read the Finance Ministry’s press release. The funding for employment programmes and activities will also grow - by BGN 72 mln. The money set aside for education will increase by more than BGN 120 mln, out of which over BGN 76 mln will finance the education of school children and students, depending on the assessment of the quality of education. The funding for culture will increase by over BGN 31 mln, out of which BGN 26 mln will finance state-run and municipal cultural institutions, including museums, galleries, libraries and community centres. Expenditures for public infrastructure in urban planning and environmental protection are projected to increase by BGN 510 mln. The draft budget plans an increase of pensions and teachers' salaries only and no increase in remuneration in the public sector. The administration of the President will receive BGN 6,136,000, while the Government will spend BGN 72,600,000 (BGN 16 mln from revenues and BGN 56,600,000 from the Treasury). The largest share of government subsidies has been earmarked for the Ministry of Defence (BGN 1.014 bn) and the Interior Ministry (BGN1.013 bn).
Source: Class (04.10.2012)

Plamen Dimitrov: There are no regional minimal wages in the world The announcement of the Minister of Finance for the implementation of the regional minimum wage is not only unacceptable, but also incomprehensible for us, the president of the Confederation of Independent Trade Unions of Bulgaria (CITUB) Plamen Dimitrov said during a round table, called Wages in Bulgaria - Challenges and Prospects. We cannot observe international conventions and norms by which the State is a party, if we tendentiously and intentionally proclaim differences in payment based solely on the fact where we live, and not on the fact how much and what kind of work we put in what we produce, said the leader of CITUB on Wednesday, cited by BTA. Dimitrov said that there is no mechanism for regional minimum wages in the EU. There are some regional projections and only in countries with highly developed collective contractual arrangements - such as Germany, Dimitrov added. There are no regional minimum wages anywhere in the normal world, to which we belong, and therefore there is no way CITUB will accept a similar announcement, Plamen Dimitrov said further. He also commented that the net amount of the minimum wage with a few exceptions remains permanently around or below the official poverty line, which is a prerequisite for maintaining the permanent contingent of working poor. According to him, another source for the reinforcement of this contingent are the so-called low-paid workers, defined by Eurostat as employed on a full-time basis with gross earnings below 67% of the median. In Bulgaria, this contingent does not decrease and reaches approximately 600,000 people who are in the category of the working poor and, during the crisis, their number is increasing, said the leader of the Confederation. These are the workers in the clothing, textile, footwear and leather industry, retail, hospitality, social activities, service building, landscaping, agriculture and forestry. According to this indicator, the country is at the top of the European chart, together with Lithuania and Latvia.
Source: Class (08.10.2012)

About 40% of Bulgarian employers have worked in the services’market. According to the European statistics about 32% of Bulgarians are employed in industry and construction. 22 % of Bulgarians work in the sphere of non-market services, while just 6.7% are employed in agriculture. Bulgarians work 40.9 hours per week on the average. As a comparison, according to the same statistics, almost 70 percent of employees in the EU-27 in 2011, worked in the services sector, compared with 62 percent in 2000.
Source: Darik Radio (08.10.2012)

According to flash estimates, the seasonally adjusted industrial production index in Bulgaria increased by 1.0% in August 2012 as compared to July 2012. The preliminary data was released Monday by the Bulgarian National Statistics Institute, NSI. In August 2012, the work day adjusted industrial production index by 2.0% in comparison with the same month of 2011. In August 2012, as compared to July 2012, the seasonally adjusted industrial production index in the manufacturing increased by 1.1%, while in the electricity, gas, steam and air conditioning supply and in the mining and quarrying industry a decrease by 0.7% was observed. The most significant increases of production in the manufacturing were noted in the repair and installation of machinery and equipment - by 22.7%, in the manufacture of fabricated metal products, except machinery and equipment - by 7.5%, in the manufacture of rubber and plastic products - by 6.2%, in the manufacture of machinery and equipment - by 5.7%. There was decrease in the manufacture of tobacco products - by 18.5%, in the manufacture of basic metals - by 13.2%, in the manufacture of basic pharmaceutical products and pharmaceutical preparations - by 11.7%, in the manufacture of paper and paper products - by 6.2%. On annual basis, in August 2012, the industrial production index, calculated from work day adjusted data in the mining and quarrying industry, increased by 4.5%, in the manufacturing - by 2.5% and in the electricity, gas, steam and air conditioning supply - by 1.3%. In the manufacturing, the more significant increases compared to the same month of the previous year were seen in the manufacture of machinery and equipment - by 20.6%, in the repair and installation of machinery and equipment - by 17.9%, in the manufacture of electrical equipment - by 13.4%, in the manufacture of basic pharmaceutical products and pharmaceutical preparations - by 8.4%. Decreases were registered in the manufacture of textiles - by 28.8%, in the manufacture of basic metals - by 23.0%, in the manufacture of chemicals and chemical products by - 16.6%. According to the preliminary data of the NSI, in August 2012, the index of production in the construction sector, calculated on the base of seasonally adjusted data3, was 0.3% below the level of the previous month. In August 2012, the work day adjusted data showed an increase of 1.2% in the construction production, compared to the same month of 2011. In August 2012, the construction production was below the level of the previous month. The index of production of civil engineering, calculated from the seasonally adjusted data, increased by 0.2%, while the production of building construction fell by 0.7%. On an annual basis, in August 2012, the increase of production in construction, calculated from working day adjusted data, was determined mainly from the positive rate in the civil engineering by 7.0%, while in the building construction a decrease by 3.0% was registered. By preliminary seasonally adjusted data of NSI, in August 2012, the turnover in retail trade, except of motor vehicles and motorcycles, at constant prices kept the level from the previous month. In August 2012, the work day adjusted turnover in retail trade, except of motor vehicles and motorcycles, improved by 0.9% in comparison with the same month of the previous year. In August, compared to the previous month the turnover increased in the 'retail sale of textiles, clothing, footwear, and leather goods' - by 1.5% and in the 'retail sale of food, beverages and tobacco' - by 0.4%. At the same time, more significant decline was registered in the 'retail sale via mail order houses or via Internet' - by 4.0% and by 1.5% in the 'dispensing chemist; retail sale of medical and orthopedic goods, cosmetic and toilet articles' and in the 'retail sale of audio and video equipment; hardware, paints and glass; electrical household appliances'. In August 2012, compared to the same month of 2011, the turnover rose in the 'retail sale via mail order houses or via Internet' - by 5.8%, in the 'retail sale of automotive fuel' - by 5.4%, in the 'dispensing chemist; retail sale of medical and orthopedic goods, cosmetic and toilet articles' - by 4.9%, in the 'retail sale of computers, peripheral units and software; telecommunications equipment' - by 4.5% and in the 'retail sale of food, beverages and tobacco' - by 2.5%. A drop in the turnover was registered in the 'Retail sale of audio and video equipment; hardware, paints and glass; electrical household appliances' - by 11.0%, in the 'retail sale of textiles, clothing, footwear and leather goods' - by 10.0% and in the 'other retail sale in non-specialized stores' - by 6.2%. Seasonal adjustment is a statistical method, which eliminates the seasonal component of time series and it is particularly suitable for long-term comparisons and analysis of the data. Work day adjustment is an adjustment for variations in monthly data, caused by calendar effects, different number of calendar and work days in the month, and national holydays - for example the presence of more days off in May could contribute to the decline in the production in some activities.
Source: Capital (09.10.2012)

Industrial production up by 2% on an annual basis In August 2012, the calendar adjusted index of industrial production rose by 2.0%, compared to the same month of 2011. The index of industrial production, calculated on the basis of seasonally-adjusted data, rose by 1.0%, compared to July 2012, showed preliminary data of the National Statistical Institute (NSI), made public on Monday. In August 2012, the processing industry registered an increase of 1.1%, compared to the previous month, while the production and distribution of electricity, heating energy and gas, and the extracting industry reported a decrease of 0.7%, showed NSI’s preliminary data. A more significant increase in the processing industry was registered in the repair and installation of machines and equipment - 22.7%, the manufacture of metal products, excluding machines and equipment - 7.5%, the manufacture of rubber and plastic products - 6.2% and the manufacture of machines and equipment - 5.7%. A decline was reported in the manufacture of tobacco products - 18.5%, the manufacture of basic metals - 13.2%, the manufacture of pharmaceutical products - 11.7%, the manufacture of pulp, paper and cardboard, and products thereof – 6.2%. A year-on-year increase, calculated on calendar-adjusted data in industrial production was reported in the extracting industry - 4.5%, the processing industry - 2.5%, and the production and distribution of electricity, heating energy and gas - 1.3%.
Source: Class (09.10.2012)

NSI: Construction output down 0.3% in a month and up 1.2% year-on-year In August 2012, the production index in the Construction sector, calculated on the basis of seasonally-adjusted data, was 0.3%, compared to the previous month, showed preliminary data of the National Statistical Institute (NSI). Calendar-adjusted data showed an increase of 1.2% in construction output in August 2012, compared to the same month of 2011. In August 2012, the production index in the construction sector, calculated on the basis of seasonally-adjusted data, was below the level of the previous month, civil engineering production having increased by 0.2% and that of building construction having decreased by 0.7%. The year-on-year increase in construction output in August 2012 was mainly determined by the positive momentum in civil engineering where growth calculated on the basis of calendar-adjusted data was 7%, while building construction registered a 3% decrease.
Source: Class (09.10.2012)

Crisis Eats up Savings in Bulgaria Crisis eats up the wealth of the Bulgarians. Within a year the net assets of the households in Bulgaria stayed at the level of BGN 229 billion, shows the data of the trimester analysis of UniCredit Bulbank on the assets and debts of the Bulgarians. The main reason for this unpleasant result is the global crisis. The real estate market shrinks. The Bulgarians prefer saving money instead of spending or making investments. The financial wealth of Bulgarian households increases by 12% within a year to reach nearly BGN 41,8 billion end-June 2012. The biggest share of this money is the bank savings of the Bulgarians, which increase by 14% in one year to reach BGN 32,4 billion. The savings in pension funds also grow by BGN 196 million due to the compulsory contributions in universal funds. The life insurances also grow by 14%. At the same time the investments in stocks decrease by BGN 140 million, in REITs by BGN 21 million.
Source: Standart (09.10.2012)

Bulgaria’s exports stand at BGN 26.6 bn Since the beginning of the year, Bulgaria has exported goods worth BGN 26.6 bn, exports having increased by 2.3%, compared to the same period of 2011, the National Statistical Institute (NSI) reported on Wednesday. Imports increased more rapidly and were worth BGN 33.1 bn in January - August 2012, having increased by 13.1%, compared to the same period of last year. In August 2012, Bulgaria’s foreign trade balance had a deficit of BGN 439 mln. After deducting transportation and insurance costs on imports, the deficit amounts to BGN 237.5 mln. Total exports were worth BGN 3.6 bn, registering a 6.2% increase, compared to the same month of last year. Imports increased by 16.7%, compared to August 2011 and amounted to BGN 4.1 bn. Since the beginning of 2012, Bulgaria exported goods worth BGN 10.9 bn to countries outside the European Union, registering an increase of 9.4%. Our country’s main trade partners are Turkey, China, Russia, Serbia and Macedonia, accounting for 47.1% of the exports to third countries. In August 2012, exports to third countries increased by 38.5%, compared to the same month of the previous year and stood at BGN 1.7 bn. During the first eight months of 2012, imports into Bulgaria from third countries increased by 14.6%, compared to the same period of 2011 and totaled BGN 13.8 bn. The largest volume of goods was imported from Russia, Turkey and China. In August 2012, Bulgaria’s imports from third countries increased by 27%, compared to the same month of last year and amounted to BGN 1.9 bn. Bulgaria’s trade balance (export FOB - import CIF) with third countries for the January-August 2012 period had a deficit of BGN 2,838.8 mln and a deficit of BGN 187.5 mln for August 2012.
Source: Class (11.10.2012)

Proceeds from overnights in August total BGN 196 mln Proceeds from overnights at hotels and other accommodation places in Bulgaria totaled BGN 196 mln in August, registering a 2.1% increase, compared to July. Overnights of foreign nationals increased by 74%. At the end of the summer, there were over 2,500 accommodation places with more than 10 beds, showed data of the National Statistical Institute (NSI), made public on Wednesday. The survey of NSI includes hotels, motels, camping sites, lodges, rest houses and guest houses, bungalows and private lodgings, where overnights in August alone totaled 4,800. The accommodation places were 2% more, compared to July. Half of foreigners’ overnights were at 4- and 5-star hotels and the most frequent stays were for about six days, specified NSI. According to statistics, nearly half of Bulgarians stay at 1- or 2-star accommodation places. The overall occupancy rate of beds at hotels and other accommodation places was 58.9% in August 2012, being the highest at 4- and 5-star hotels - 71.7%, followed by 3-star hotels - 62.1%, and that at 1- and 2-star accommodation places was 40.5%. The highest increase in the occupancy rate (3.7%), compared to the previous month, was registered at 4- and 5-star hotels.
Source: Class (11.10.2012)

Bulgarians sink deeper into economic trouble Bulgarians are sinking deeper into economic trouble, with half of the population cutting back on staples. This dire picture is painted by the results from a nation-wide representative survey by the National Centre for Studying Public Opinion, conducted at the end of September this year. Some 52% of respondents said that they spend less on staples than before. Another 46% were unable to have their planned vacation in 2012, most of them between the age of 30 and 49, residents of the capital Sofia, in households earning up to BGN 300 a month or families with more than five members. Some 40% of adults in Bulgaria have been forced to put off planned repairs or furnishing of their home, up 5% from November 2011. The share of people struggling with their monthly loan payments remained unchanged at 20%, compared to last year. Some 15% of Bulgarians postponed car purchases. Some 16% of people surveyed confess they have been out of a job for a period of up to six months in the past year. The figure represents a rise of 4% year-on-year. Meanwhile, the number of people that have gone through a spell of more than six months in the ranks of the unemployed rose by two percentage points to 15% of participants in the survey. Most financially-troubled households reduce their spending on luxury goods, services and entertainment. Some 87% of respondents said that they dispense with expensive food when in dire straits, while 81% choose to give up travelling. By comparison, before the start of the economic crisis in late 2008, the figures were 82% and 66%, respectively.
Source: Class (11.10.2012)

Bulgarian Households' Economic Situation Worsens - Poll The economic situation of Bulgarian household has worsened compared to last year, according to newly-released poll of the National Center for Study of Public Opinion (NZIOM). The main hardships faced by the households are paying monthly bills, being able to purchase food and cover some basic needs. 60% of the respondents list as their biggest challenge paying their electric, heating, water and other bills. They include mostly people over the age of 40, retired people, those with low education, ethnic Turks and Roma minorities, people living in small villages or living alone, and those with a monthly income below BGN 200. Compared to November 2011, the share of people who say they have difficulties paying household bills is up 5%. 73% have cut down on consuming a variety of foods and 74% - on the use electric power. A number of households have given up on luxury goods and entertainment or going on vacation during their time off. Many have also limited the purchase of clothing and shoes. 25% have deprived themselves from tobacco and cigarettes; 31% - from alcoholic beverages; 39% from medications; and 42% from owning a phone. In comparison, in 2008 these numbers have been 20%, 24%, 34%, and 41%, respectively. 16% of the respondents report being jobless for at least 6 months during last year, which is 4% higher compared to the fall of 2011. 15% have been jobless for more than 6 months, which is a 2% increase. The poll has been conducted between September 20 and 27 among 1 000 Bulgarians over the age of 18 from 86 cities, towns and villages through face-to-face interviews.
Source: econ.bg (11.10.2012)

NSI announced a 3.7% inflation since the beginning of the year The inflation since the beginning of the year (September 2012, compared to December 2011) has been 3.7% and the annual inflation rate for September 2012, compared to September 2011 - 4.9%, NSI announced. The Consumer Price Index for September 2012, compared to August 2012 was 101.1%, i.e.. the monthly inflation was 1.1%. The average annual inflation for the period October 2011 - September 2012, compared to the period October 2010 - September 2011 was 2.7%, according to statistics data. Prices of food and beverages increased by 2.7% in September 2012, compared to the previous month. Prices of alcoholic beverages and tobacco remained at the previous month's level. Fuel prices rose by 0.4%, transport by 1.6% and education by 1.5%. Prices of health services declined by 0.8%.
Source: Class (15.10.2012)

Over 93% of companies have raised prices because of the rise in the cost of electricity and fuel 93.5% of companies have been affected by increases in the prices of electricity and fuel. The impact has shown in different directions, mainly related to higher prices of companies' production and the taking of measures for energy efficiency. Following recent increases in fuel and electricity prices, 56% of companies have raised the price of their goods or services, and 30% are planning to improve energy efficiency. There are also those who report lay-offs or a reduction in payment - with a share of 22% and 21%, respectively. Increases in the prices of energy resources have not affected only 6.5% of businesses, a survey of the Bulgarian Chamber of Commerce among its members, conducted in early October, showed. The reason to conduct the study was the high consumption of energy resources, placing our country first in the EU in terms of energy use. In this context, a BCCI poll in May 2012 showed that more and more companies are looking to reduce energy costs through energy efficiency measures. The overall improvement of energy efficiency of enterprises still doesn't have enough coverage among businesses - an average of 45% of companies have already implemented partial actions via which they intend to reduce energy costs, driven mainly by the rising prices and the need to reduce costs. The study showed that the least implemented measure in industry is the utilisation of excess heat by production (only 22% of enterprises). It is worrying that almost one-fifth of the companies which have taken energy efficiency measures do not assess positively the results and believe that these have no significant impact, which raises serious questions about the quality of their implementation.
Source: Class (15.10.2012)

Bulgaria continues to lag behind with innovations Bulgaria continues to lag behind in terms of investments in innovations and development, data of the National Statistics Institute showed. In 2011, the total expenditure on research and development (R&D) was 0.57% of GDP, or 0.03 percentage points below the level of 2010. In terms of this indicator, we still seriously lag behind the average level of this index for the EU - 27, which was 2.0 % in 2010. In 2011, R&D expenses were BGN 429.6 mln, or 1.9% more than in the previous year, while their growth, compared to previous years in absolute terms, does not affect R&D's intensity. And it is measured as a percentage of R&D expenditure of GDP, which is one of the key indicators used to measure the progress of the European Union (EU) in achieving the objectives of the new strategy "Europe 2020" - a strategy for smart, sustainable and inclusive growth. The largest relative share in total R&D expenditures in 2011 was that of the Enterprise Sector - 53.3%, as compared to 2010, an increase of 7.8% was registered (from BGN 212.1 mln to BGN 228.7 mln). In 2011, compared to the previous year, a decrease was noticed in the sectors Higher Education and Government Administration - 11.2% (from BGN 49.5 mln to BGN 44.0 mln) and 2.0% (from BGN 157.1 mln to BGN 153.9 mln), respectively. In recent years, foreign sources of funds for carrying out R&D in Bulgaria have become increasingly important - foreign companies, European programmes, international organisations, other governments, etc. For the first time in 2011, they have the largest share in total R&D expenditure - 43.9%, and they leave behind the former major source of funding - the Government Administration sector, with a share of 38.8%. In the structure of R&D expenditure by field of science, same as 2010, the largest relative share of R&D expenditures are in the field of medical sciences - 43.5% (BGN 186.9 mln), followed by science and technology - with 21.9% (BGN 94.1 mln) and 19.1% (BGN 82.0 mln), respectively.
Source: Class (16.10.2012)

Bulgaria ranks first in the EU in terms of occupancy rate of accommodation places in mid-2012 In mid-2012, Bulgaria reported the highest occupancy rate of beds at hotels and other accommodation places among EU Member States - almost 90%, showed a survey of Eurostat, released on Monday. According to data of the National Statistical Institute (NSI), the number of overnights spent in Bulgaria in August 2012 were around 4.8 million, out of which 3.5 million were those of foreigners. Around 1 million vacationers, out of whom 780,000 foreigners, were accommodated in our country during the most attractive month of the summer holiday season. Revenues from these overnights stood at around BGN 200 mln, out of which BGN 158 mln from foreigners. Nearly 5 million people, half of whom foreigners, stayed at Bulgarian hotels and accommodation places throughout 2011, showed NSI’s data. Revenues from those overnights exceeded BGN 730 mln, out of which BGN 520 mln were revenues from foreigners. Countries lagging behind Bulgaria in Eurostat’s ranking of the occupancy rate of accommodation places are: Cyprus, with a 77.4% occupancy rate, Malta (75.7%) and even the UK (72%) which hosted the 2012 Summer Olympics. Even traditionally well-developed tourist destinations, such as France and Spain, reported an occupancy rate of accommodation places of 70% and 60%, respectively.
Source: profit.bg (22.10.2012)

NSI: 2011 budget deficit stands at 2% Bulgaria’s 2011 budget deficit stands at 2% (BGN 1.535 bn) of the gross domestic product (GDP), showed final data of the National Statistical Institute (NSI). The deficit in sub-sectors is as follows: BGN 1.702 bn, or 2.3% of GDP in the Central Government and BGN 19 mln in Local Government, while Social Security Funds had a surplus of BGN 186 mln, or 0.2% of GDP. NSI pointed out that the BGN 40.4 mln difference between the preliminary and final figures about the deficit is due to conclusive data received about tax revenues, the annual reports on the operation of public hospitals and the public companies in the Government sector and the final data from the turnover ledgers of budget-financed organisations and municipalities. According to NSI’s conclusive data, Bulgaria's foreign debt stood at BGN 12.29 bn, or 16.3% of GDP at the end of 2011.
Source: Class (23.10.2012)

Bulgaria Has 2nd Lowest State Debt in EU Bulgaria is among the EU member states with the lowest state debt/GDP ration, EUROSTAT says. At the end of 2011, Bulgaria's state debt was 16.3% of its GDP, trailing only behind Estonia (6.3%) and leading to Luxembourg (18.3%). Greece's foreign debt is 170% of its GDP, followed by Italy (120.7%) and Portugal (108.1%).
Source: Standart (23.10.2012)

Bulgarian Residential Property Prices Slump Further The index of residential property prices calculated each quarter by Bulgaria's National Statistical Institute has gone by 0.5% in the third quarter on a quarterly basis. The decline in Bulgaria's residential property prices is greater when estimated year-on-year – the index is down by 2.2% compared with the third quarter of 2011. All of Bulgaria's 27 district capital cities saw their residential property prices go down in the third quarter of 2012. The largest decreases in the price of residential real estate on quarterly basis was registered in the southwestern city of Kyustendil – 3.5%, in the northwestern city of Montana – 3.4%, and in the southern city of Pazardzhik – 2.7%. The average price per square meter of residential property in Bulgaria in July-Septemer 2012 was BGN 881.21, as estimated by the NSI. The highest average prices per square meter of residential property in Bulgaria were found in the capital Sofia – BGN 1 447.33 per square meter, in Varna – BGN 1 425.83, and in Burgas – BGN 1 135.83.
Source: investor.bg (23.10.2012)

WB Downgrades Business Climate in Bulgaria Bulgaria has lost two positions (from 64th to 66th) in the World Bank's chart Doing Business 2013 since last year. The report of the World Bank assesses the progress the different countries have made in the field of improving their business climate for small and medium-sized enterprises. On the WB's rankings Bulgaria is lagging behind the Czech Republic but is ahead of Azerbaijan. Bulgaria has reported improvement in three of the ten categories reviewed by the report - Bankruptcy settlement, Trans-border trade, Application of contracts. However, deterioration is reported in six categories - Starting business, Obtaining a construction permit, access to power supply, Protection of investors, Access to crediting, Payment of Taxes. No changes have been reported in the category Registration of Property.
Source: Standart (24.10.2012)

Bulgarians 4th in EU by Tourism Spending Bulgarians are fourth in the EU by spending on holiday trips and tourism, according to data of Eurostat. Against the backdrop of the financial crisis and the fact that Bulgarians have the lowest wages in the EU, a Bulgarian national spent an average EUR 2100 on holiday trips and tourism in 2011, according to the EU's Statistical Office. According to data of Bulgaria's National Statistical Institute (NSI), in Q2, 2012, Bulgarians spent a total of over BGN 220 M on travelling, almost BGN 90 M of them on food, accommodation, etc at EU destinations. In August 2012, over 420 000 Bulgarians travelled abroad, half of them to EU countries. In August 2012, the most intense traffic flow was to Greece, which was visited by over 70 000 Bulgarians; Germany, visited by over 25 000 Bulgarians; Spain and Italy, visited by over 16 000 Bulgarians. According to NSI, over 3.8 M Bulgarians travelled abroad in 2011, half of the trips again to EU countries. The largest number of Bulgarians visited neighboring countries, with over 1.1 M Bulgarian tourists traveling to Turkey, over 1 M Bulgarians visiting Greece, and over 300 000 Bulgarians visiting Romania and the former Yugoslav Republic of Macedonia. According to the Eurostat report, the biggest spenders were citizens of Luxembourg, EUR 6500 per person, followed by Danes with EUR 4400, Norwegians with EUR 2400, and Bulgarians with around EUR 2100. In 2011, French spent around EUR 1700 on tourism, Germans around EUR 1500, Spanish citizens and Belgium nationals around EUR 1100. The smallest amount of money on holiday trips and tourism were spent by Romanians spent the smallest amount of money on holiday trips and tourism, EUR 160, followed by Hungary with EUR 290, and Poland with EUR 300. According to the Eurostat report, in the period 2006 – 2011, when the tourism sector was most affected by the crisis, the 65+ age group accounted for the largest share of trips. Eurostat data also indicates that the average duration of holiday trips in 2011 was 4+ nights.
Source: Standart (29.10.2012)

Bulgarians rank fourth in EU on tourism spending Bulgarians rank fourth among the 27 EU Member States on holiday travel and tourism spending, showed Eurostat data. The analysis focuses on the new political framework for tourism in Europe and the target for the Old Continent to become the No 1 travel destination in the world. In 2011, Bulgarians spent ˆ2,100 on average on holiday travel and tourism, showed the analysis of Eurostat. According to the National Statistical Institute (NSI), for the second quarter of 2012, Bulgarians spent more than BGN 220 mln on travelling, out of which almost BGN 90 mln on trips to EU destinations (for food, accommodation, transport and other expenses). In August this 2012, more than 420,000 Bulgarians travelled abroad, half of them having chosen EU countries. Greece was the most preferred destinations in August, having attracted over 70,000 Bulgarians, followed by Germany, visited by over 25,000 of our fellow countrymen, Spain and Italy - more than 16,000 people. According to NSI, over 3.8 million Bulgarians travelled abroad last year, again half of the destinations were EU Member States. Bulgarians visited mostly our neighbouring countries: Turkey (more than 1.1 million), Greece (over 1 million), Macedonia and Romania (more than 300,000 to each of them). According to Eurostat, the residents of Luxembourg spent most lavishly on holiday trips - ˆ6,500 per person, followed by Danes - around ˆ4,400, Norwegians - ˆ2,400, Bulgarians - ˆ2,100, the French - ˆ1,700, Germans - ˆ1,500, Spaniards and Belgians - around ˆ1,100. The least money for holiday trips and tourism were spent by Romanians - ˆ160 per person, Hungarians - ˆ290 and the Polish - ˆ 300.
Source: Class (30.10.2012)

Production prices in the country rise by 0.3% in September The prices of goods produced in Bulgaria and intended for the local market increased by 0.3% in September, according to figures from the National Statistical Institute. The increase is entirely due to the manufacturing industry, where producer prices rose by 0.8% on average from August to September. On an annual basis, compared to September 2011, industrial producer prices increased by 6.6%, again due to the manufacturing industry where commodity prices increased by 5.8% in a year. The highest rise in prices was recorded in the manufacture of tobacco products (+8%), food products (6.7%) and chemical products (5.4%). Local companies' production is also more expensive for customers abroad. This is evident from the national statistics' overall index of producer prices in industry, which includes both domestic prices and prices for the foreign market. On a monthly basis, local produce was 0.9% more expensive in September, compared to August and, on an annual basis, compared to September 2011 the price increase was 5.4%. This means that Bulgarian goods are losing competitiveness in terms of prices on the international market. For consumers in Bulgaria, the higher manufacturing inflation is an indicator for a subsequent jump in prices and a reason for comparisons to income growth. The latest data of the National Statistical Institute showed that the total average income per person in a household amounted to BGN 1,071 in the second quarter of the year, or BGN 357 per month, which is 13.8% more than the same period last year.
Source: Class (31.10.2012)

Bulgarian Producer Prices in Industry Up by 6.6% Sept Y/Y Bulgaria's producer price index on the domestic market grew by 6.6% year on year in September 2012. Domestic prices increased in manufacturing by 5.8% and in the electricity, gas, steam and air conditioning supply by 10.5%, while prices fell by 3.3% in the mining and quarrying industry. As compared to September 2011, prices increased in the manufacture of tobacco products by 8.0%, in the manufacture food products by 6.7%, in the manufacture of textiles by 5.6%, in the manufacture of chemical and chemical products by 5.4%, in the manufacture of beverages by 5.3%. Prices decreased in the manufacture of basic metals by 2.1%, in the manufacture of other non-metallic mineral products by 1.4% and in the manufacture of electrical equipment by 0.8%. In September, Bulgaria's producer price index on the domestic market increased by 0.3% compared to the previous month.
Source: Darik Radio (31.10.2012)

Less residential buildings with smaller area are built Permits for construction of 1 159 residential buildings with 2 715 homes in them and 356 971 square meters of gloss floor area are issued in the third quarter of 2012. As compared to the previous quarter the decrease is by 4.9%. Permits for construction of 46 more administrative buildings are issued, as well. Number of administrative buildings has increased by 12.2%, while gross floor area has gone up by 18.3%. Other types of buildings register decrease by 2.4%. As compared to the third quarter of 2011, issued building permits decrease by 13.2%. Administrative buildings are less by 24.6%. The highest number of buildings permits was issued in Bourgas - 198, Plovdiv - 125, Sofia - 110 and the region around the capital - 104. In 2012’s third quarter construction of 660 residential buildings with 1 378 homes and about 200 062 square meters of total built-up area have begun. Construction of 26 administrative buildings/offices with 17 329 square meters of gross floor area, as well as 588 other buildings have started, too. As compared to the previous quarter number of started residential buildings is less by 3.4%, homes in them – fewer by 31.2%, while the gross floor area is less by - 17.7%.
Source: profit.bg (01.11.2012)

Price stabilization of homes in Bulgaria a fact Prices of apartments in the country have undergone alterations during all past months of 2012. Declines and increases have been minimal though, which enhances trend of price stabilization. In the third quarter of 2012 apartments went back to a drop- by 0.46%. Prices of homes went down nominally by 2.23 % on the average for the country. The real decline of the average prices of apartments is by 1.69%, as compared to the previous quarter and by 5.07% on an annual basis on the average for the country. The average sum of a home in Bulgaria’s regional towns was to the amount of EUR 450 per square meter in the previous quarter. That is to say that the decline is by EUR 3 as compared to the second quarter of the year. Calculated accumulated real decline from the start of the crisis is -43.83% national average. In the period July-September 2012 apartments in the biggest towns were sold within the range of EUR 374 and EUR 740 per square meter. Price of homes in Sofia was traditionally the highest-EUR 740 per square meter. Prices in Varna continue to be the closest to tthat in the capital- EUR729 per square meter, followed by Plovdiv – EUR 478 per square meter, Bourgas – EUR 580 per square meter, Stara Zagora – EUR 460 per square meter, Rousse – EUR 449 per square meter, Veliko Turnovo – EUR 374 per square meter.
Source: Stroitelstvo Imoti (05.11.2012)

Bulgaria's Q3, 2012 Unemployment Rate at 11.5% In the third quarter of 2012, the unemployment rate in Bulgaria increased by 1.3 percentage points as compared to the same period of 2011, according to the Labor Force Survey (LFS) of the National Statistical Institute (NSI). In the period July – September 2012, there were a total of 392.9 thousand unemployed and the unemployment rate in Bulgaria was 11.5%. According to NSI data, in Q3, 2012 the economically active population aged 15-64 was 3.369 million or 68.5% of the population in the same age group, up by 1.8 percentage points from Q3, 2011. According to NSI's Labor Force Survey (LFS), in Q3, 2012 there were a total of 3.016 million employed people, or 47.9% of the population aged 15+.
Source: Capital (06.11.2012)

Consumer confidence down 4.3% In October, the overall index of consumer confidence fell by 4.3 percentage points, compared to its level three months ago, showed National Statistical Institute (NSI) data from a survey of consumers, released on Monday. A decrease in consumer confidence – of 4.6% and 4%, respectively - was observed both in urban and rural areas. The survey in October showed an overall increase in the pessimistic assessments and expectations of consumers, compared to the previous survey in July. Pessimism spread onto consumers’ assessments and expectations about the changes in the financial situation of their households, consumer prices and the unemployment rate over the next 12 months. The current economic situation in the country is assessed by most of the consumers as unfavourable for saving money and their expectations regarding the ability to save over the next 12 months worsened. The most recent poll reported a deterioration of 3.6 percentage points of the total assessment of making expenses for the purchase of durable goods in the current situation. The changes in the indicators about the planned expenses for buying a car, a home, a villa or making home improvements over the next 12 months are also negative. The current economic situation in Bulgaria is assessed by the majority of consumers as bad and the pessimism of consumers about the development of the general economic situation in the country over the next 12 months is increasing.
Source: Class (06.11.2012)

NSI: Q3 2012 unemployment rate stands at 11.5% In Q3 2012, the economically active population in our country, aged 15 to 64, totaled 3,369,300 or 68.5% of the population in the same age group. The coefficient of economic activity of the population was 1.8% higher, compared to Q3, 2011. These are the preliminary figures of the National Statistical Institute (NSI) from its survey on the labour force in Bulgaria. The total number of employees was 3,015,900 and their share of the population aged over 15 was 47.9%. The number of employed people aged 15 to 64 was 2,977,300. The employment rate of the population in the same age group was 60.6%, or 0.8% higher than in Q3 2011. The number of jobless people was 392,900 and the unemployment rate - 11.5%. The unemployment rate coefficient increased by 1.3 percentage points, compared to Q3 2011.
Source: Class (06.11.2012)

Industrialists: the share of the grey economy is decreasing The share of the grey economy in Bulgaria seems to be decreasing, General Secretary of the Bulgarian Industrial Capital Association (BICA) Milena Angelova, announced in Dobrich, cited by BNR. She explained that the share of the grey economy sector has decreased by 6% to almost 37%. If in 2010 the basic "grey" practice was working without any contract at all, now working without an employment contract is not such a big problem, Angelova said. According to her, the problem now is that the contracts do not include the actual wage. "Contracts are either signed under the minimum wage or at a lower amount, but they always include an additional payment in an envelope. This is a new challenge," reckons the business association. According to a survey, 64% of employers admit that working in the grey sector provides quick profits and 85% say that laws are not applied equally to all. The most common "grey" practices are hiding profits, non-invoiced transactions, non-payment of income tax, additional payment by hand, contraband import and export.
Source: Class (06.11.2012)

Bulgaria Sees EU's Largest Increase of Industrial Producer Prices Sept 2012 Y/Y Bulgaria observed the largest annual increase of its industrial producer price index among all EU member states in September 2012 (+6.6%), according to Eurostat. Bulgaria is followed by Cyprus (+6.3%) and Romania (+6.0%), while the smallest increases were registered in Sweden (+0.5%), Malta, Austria and Slovenia (all +0.9%). In September 2012 compared with September 2011, industrial producer prices gained 2.7% in the euro area and 2.6% in the EU27. In September 2012, compared with September 2011, prices in total industry excluding the energy sector increased by 1.2% in the euro area and by 1.3% in the EU27. Prices in the energy sector rose by 7.0% and 6.6% respectively. Non-durable consumer goods gained 2.4% in the euro area and 2.6% in the EU27. In both zones, durable consumer goods rose by 1.3%, capital goods by 0.9% and intermediate goods by 0.7%. In September 2012, compared with the previous month, prices in total industry excluding the energy sector gained 0.3% in both the euro area and the EU27. Prices in the energy sector remained stable in the euro area and rose by 0.5% in the EU27. In both zones, intermediate goods and non-durable consumer goods increased by 0.4%, while capital goods and durable consumer goods remained stable. In September 2012, compared with August 2012, the industrial producer price index1 rose by 0.2% in the euro area (EA17) and by 0.3% in the EU27. In August3 prices increased by 0.9% and 1.1% respectively.
Source: Dnevnik (07.11.2012)

NSI’s statistics on tourists mistaken due to a technical error A technical error was the reason for the National Statistical Institute (NSI) to submit to Eurostat data that Bulgarians spent ˆ2,092 on average on vacations in 2011, announced NSI’s press centre. A joint check with Eurostat showed that the number of tourists who had travelled within the country and abroad for more than four nights was 1,117,119 rather than 416,250 as per earlier submitted data. After a correction was made, the average annual spending per Bulgarian tourist was calculated at ˆ779 instead of ˆ2,092 as per the initial figures. In order to improve the data in the tourism sector, NSI will improve its cooperation with other institutions (Interior Ministry, Ministry of Economy, Energy and Tourism, branch organisations) as additional sources of information about Bulgarian citizens’ trips within the country and abroad. The check was delayed due to national holidays in Luxembourg, NSI reported. Despite the correction, the average amount spent by Bulgarian vacationers still seems quite high, compared to countries with a similar living standard. For instance, Romanians spent ˆ162 and Hungarians - ˆ290.
Source: Class (07.11.2012)

NSI reports a 1.8% decline in industrial output for September In September 2012, the seasonally adjusted index of industrial production decreased by 1.8%, compared to August 2012, the National Statistical Institute (NSI) reported on Wednesday. The calendar-adjusted index of industrial production registered a decline of 1.3% in September 2012, compared to the same month of 2011. The production and distribution of electricity, heating energy and gas dropped by 4.7% in September 2012, compared to the previous month, the output of the processing industry declined by 2.5% on a monthly basis, while the extracting industry registered an increase of 0.6% in output. A year-on-year decrease in industrial production, calculated on the basis of calendar adjusted data, was registered in the processing industry (3.6%) and an increase was reported by the production and distribution of electricity, heating energy and gas (5.7%) and the extracting industry (2.1%). Construction output fell in September by 1.1%, compared to the previous month and by 2.9%, compared to September 2011. Building construction decreased by 1.3% on a monthly basis and civil engineering - by 0.8%. The year-on-year decrease in construction output in September was mainly due to the growth in building construction where the decline was 8%, while civil engineering reported an increase of 4.2%.
Source: Class (08.11.2012)

NSI: The average salary for September is BGN 768, the number of employed – 2,130,000 In Q3 2012, the average monthly wage decreased by 0.5% to BGN 754, compared to Q2 2012. In September, it was BGN 768, according to the National Statistical Institute (NSI). The economic activities where the highest drop in the average monthly wages were registered (7%) are the financial and insurance services. The activities with the greatest increase in the average monthly salary are agriculture (12.2%) and the extracting industry (7.2%). In Q3 2012, the average monthly salary increased by 8.8%, compared to Q3 2011. Compared to the same period of last year, the average monthly wage in Q3 2012 increased by 5% in the public sector and by 10.4%. in the private sector. At the end of September 2012, the number of people employed under a labour contract in Bulgaria decreased by 22,000. Compared to the end of June, the number of employed people fell by 1% to 2,130,000 people. Compared to Q2 2012, the largest decrease in the number of employed people was registered at hotels and restaurants - 17.7%. Meanwhile, the highest increase of employees working under a labour contract was registered in administrative activities (7.7%), and education (1.2%).
Source: Class (09.11.2012)

Bulgaria Sees 7.3% Increase of Hotel Nights Jan-Sept 2012 Y/Y The number of nights spent in Bulgaria's hotels and other accommodation establishments increased by 7.3 % year on year in the period January-September 2012, according to the country's National Statistical Institute. The nights spent by foreign residents increased by 8.1% and by Bulgarian residents - by 5.4%. The total number of the nights spent in all accommodation establishments amounted to 2 255.8 thousands as 648.4 thousands by them were spent by Bulgarian residents and 1 607.4 thousands - by foreigners. In 4 and 5 stars hotels, foreign citizens accounted for 61.3% of all nights spent. Compared to the period January - September 2011 the arrivals in all accommodation establishments in the same period of 2012 increased by 8.7% and reached 17 238.3 thousands.
Source: econ.bg (09.11.2012)

Bulgarian export to the EU keeps on falling Trade balance (export FOB - import CIF) of Bulgaria to the EU for the period January-August 2012 is negative and amounts to BGN 3.58 billion. With prices FOB/FOB (after eliminating the cost of transport and insurance on imports) balance was also negative and amounted to BGN 2.83 billion. Exports of Bulgaria to the EU distributed according to the Standard International Trade Classification, in the first eight months of 2012 compared to the same period last year reported the highest growth (by 37.1%) in sector "Mineral fuels, lubricants and related materials", and the largest decrease (by 36.1%) – in sector "Raw (crude) materials, inedible (except fuel)". In the period January - August 2012 Bulgaria's exports to the EU decreased by 2.1% compared to the same period last year and amounted to BGN 15.7 billion. The main trade partners of the country are Germany, Italy, Romania, Greece, France and Belgium, which forms 71.1% of the export to EU members.
Source: econ.bg (12.11.2012)

Annual Inflation in Bulgaria at 4.4% in October 2012 The consumer price index in Bulgaria in October 2012, compared to September 2012, was 100.3%, i.e. the monthly inflation was 0.3%. The data was reported Tuesday by the Bulgarian National Statistical Institute (NSI). The inflation rate since the beginning of the year (October 2012 compared to December 2011) had been 4.0% and the annual inflation in October 2012 compared to October 2011 was 4.4% The annual average inflation, measured by CPI, in the last 12 months (November 2011 - October 2012) compared to the previous 12 months (November 2010 - October 2011) was 2.8%. In October 2012, compared to the previous month, the prices of goods and services in the main consumer groups changed as follows: food and non-alcoholic beverages - an increase of 0.3%; alcoholic beverages and tobacco - the prices remained at the level of the previous month; clothing and footwear - an increase of 4.7%; housing (rentals, maintenance and repair), water, electricity, gas and other fuels - an increase of 0.4%; furnishings, household equipment and routine maintenance of the house - an increase of 0.5%; health - a decrease of 0.8%; transport - a decrease of 1.7%; communications - a decrease of 0.2%; recreation and culture - an increase of 1.4%; education - an increase of 2.3%; restaurants and hotels - an increase of 0.7%; miscellaneous goods and service - an increase of 0.1%. The harmonized index of consumer prices in October 2012, compared to September 2012, was 99.9%, i.e. the monthly inflation was -0.1%. The group 'transport' had the biggest downward impact on the total HICP that measures the change in prices of the goods and services, consumed by all households (including foreign households) on the economic territory of the country. Differences between CPI and HICP are due to different coverage of the HICP and CPI in respect of treatment of the consumption by both non-resident and institutional households. The inflation rate since the beginning of the year (October 2012 compared to December 2011) had been 2.7% and the annual inflation in October 2012 compared to October 2011 was 3.0% The annual average inflation, measured by HICP, in the last 12 months (November 2011 - October 2012) compared to the previous 12 months (November 2010 - October 2011) was 2.3%. In terms of HICP in October 2012 compared to the previous month the prices of goods and services in the main consumer groups changed as follows: food and non-alcoholic beverages - an increase of 0.3%; alcoholic beverages and tobacco - the prices remained at the level of the previous month; clothing and footwear - an increase of 4.1%; housing (rentals, maintenance and repair), water, electricity, gas and other fuels - an increase of 0.2%; furnishings, household equipment and routine maintenance of the house - an increase of 0.2%; health - a decrease of 0.6%; transport - a decrease of 1.8%; communications - a decrease of 0.2%; recreation and culture - an increase of 0.9%; education - an increase of 2.2%; restaurants and hotels - an increase of 0.9%; miscellaneous goods and service - an increase of 0.3%. The price index of a small basket in October 201, compared to September 2012' was 100.2% and the overall increase since the beginning of the year (October 2012 compared to December 2011) had been 105.0%. In October compared to the previous month the prices of goods and services in the small basket for the 20% households with the lowest income, changed as follows: food products - an increase of 0.2%; non-food products - an increase of 0.6%; services - the prices remained at the level of the previous month. The harmonized index of consumer prices (HICP) is the comparable measure of inflation across EU Member states. It is one of the criterions of price stability and for readiness of Bulgaria to join the Euro Zone. HICP, as well as CPI, measures the total relative price change of goods and services. Both indices are calculated using the same basket of goods and services, but differ with respect to the used weights. HICP is calculated through the use of weights, which reflect the individual and the collective consumption of all households (incl. institutional and foreign households) on the economic territory of the country. The main source of information for HICP weights is the national accounts data. The price index of a small basket (PISB) is a measurement of the relative average price changes of 100 socially useful and vital for the living goods and services. The weights of this index reflect he expenditures of the 20% lowest income households. The source of weights information is the Households Budget Survey in the country.
Source: econ.bg (14.11.2012)

The Gross Domestic Product (GDP) of Bulgaria expanded 0.5% in the third quarter of 2012, compared with the same quarter of the previous year and 0.1% compared with the second quarter of 2012. These flash estimates were released Thursday by the Bulgarian National Statistics Institute, NSI. According to the flash GDP estimates for the third quarter of 2012, the GDP at current prices amounted to BGN 21 735 M. GVA at current prices amounted to BGN 18 571 M for the third quarter of 2012. The services sector has the largest share (57.3%) in total value added, followed by industrial sector (31.2%) and agricultural sector (11.5%). In the structure of GDP by the expenditure approach, the final consumption has the largest share, (70.3%), which in nominal terms amounted to BGN 15 292 M. In the third quarter of 2012, the gross fixed capital formation is BGN 3 580 M and has a share of 16.5% in GDP. The external balance (exports minus imports) has a positive sign. According to the seasonally adjusted data, the GDP growth rate in the third quarter of 2012 has an increase of 0.1%, compared with the previous quarter. In the third quarter of 2012, the gross value added of the total economy increased by 0.1%, compared to the second quarter of 2012. According to flash estimates of GDP by final expenditure in the third quarter of 2012, the final consumption expenditure and the gross fixed capital formation increased by 0.4%, having a major contribution to the registered growth. Compared with the previous quarter, in the third quarter of 2012, exports of goods and services increased by 0.2%, while imports of goods and services decreased by 3.7%. During the third quarter of 2012, GDP increased by 0.5% compared to the same quarter of the previous year. The gross value added increased by 0.2%. The indicator's movement is determined mainly by the increase recorded in the agricultural sector (by 6.3%) and industry (by 3.5%). The services sector has a negative contribution to the value added with a decline of 1.0% over the period. Regarding the expenditure components of GDP, the final consumption registered a positive economic growth of 2.9%, compared to the same quarter of the previous year. The gross fixed capital formation recorded an increase of 1.0%, compared to the same quarter of the previous year. Exports and imports of goods and services increased by 3.5 and 3.0% respectively. Eurostat, the statistical office of the European Union defines flash estimates as: „...the earliest picture of the economy according to national accounts concepts, which is produced and published as soon as possible after the end of the quarter, using a more incomplete set of information than that used for traditional quarterly accounts..." Flash estimates for GDP in the context of general conditions for the preparation of short – term indicators are based on preliminary short – term information (subject to subsequent update and revisions) expert assessments and models for the components of GDP structure, for which direct basic information at the time of calculation is not available. Flash estimates of GDP for the second quarter of 2012 were prepared within 44 days after the reference period. They are presented in a standard format for publication of quarterly national accounts data - current prices, relative shares of the components in the GDP structure and growth rates as compared with the previous quarter and compared with the same period of the previous year. According to the Calendar of statistical surveys, NSI will prepare and publish official quarterly estimates of GDP for the second quarter of 2012 on September 5th 2012.
Source: Capital (16.11.2012)

The average quarterly total income per household member in Q3, 2012 was BGN 1120, up by 14.5% from the same period of 2011, according to the National Statistical Institute (NSI). Wages and salaries continued to be the main source of household income with a relative share of 53.1% of the total. In Q3, 2012, average household income per capita from wages and salaries amounted to BGN 595, up by 19.2% from the same quarter of 2011. The relative share of wages and salaries in the total income decreased by 2.1 percentage points. The second most important source of income for Bulgarian households was pensions. Retirement income comprised 25.7% of the total household income, up by 3.3 percentage points. In Q3, 2012, retirement income amounted to BGN 288 per capita, up by 1.3% from Q3, 2011. In Q3, 2012, income from entrepreneurship increased by 0.6 percentage points from Q3, 2011, to BGN 94 per capita and a relative share of 8.4% of the total income. The weight of other social incomes in the third quarter of 2012 was comparatively insignificant. In Q3, 2012, other social incomes increased to BGN 39 from BGN 36, while their relative share decreased by 0.2 percentage points to 3.5%. In Q3, 2012, monetary income had a relative share of 97.2% of the total household income, similar to the level in Q3, 2011. Total expenditure per household member in the third quarter of 2012 amounted to BGN 1033, up by 12.6% from the Q3, 2011. Expenditure on food and housing (energy, fuel, water, etc.) made up the largest share of total expenditure, at 52.6%. In Q3, 2012 the largest part of the household budget was spent on food and non-alcoholic beverages. Expenditure on food and non-alcoholic beverages amounted to an average of BGN 354 per household member, or 34.3% of the total expenditure, down by 1.9 percentage points as compared to Q3, 2011. Expenditure on housing (water, electricity, heating, furnishing and maintenance) increased from BGN 148 in Q3, 2011 to BGN 190 per capita in Q3, 2012, and its relative share increased by 2.2 percentage points to 18.3% of the total expenditure. In Q3, 2012, health expenditure increased by 4.3% from Q3, 2011 to BGN 48 per capita. In Q3, 2012, health expenditure made up 4.7% of the total expenditure, down by 0.4 percentage points. Transport and communication expenditure went up by 15.9% to BGN 114 capita, its relative share increased by 0.3 percentage points to 11% of the total household expenditure.
Source: mediapool.bg (16.11.2012)

Commission for Protection of Competition defined as unlawful a decision of NSI’s chairman for ranking of candidates for a public order. The contract has a subject: "Delivery of tickets to the needs of NSI”. Commission for Protection of Competition imposed property sanction to the amount of BGN 95 569. The procedure is established after Elite travel international OOD’s complaint. The contracting authority included in the commission’s member external expert, who does not abide by the Law on public orders’requirements, i.e to be qualified in delivery of plane tickets, ensuring of hotel reservations and ground transportation abroad.
Source: Darik Radio (16.11.2012)

Total average Q3 2012 per capita income in a household up by 14.5% The total average Q3 2012 per capita income in a household amounted to BGN 1,120, having increased by 14.5%, compared to the same period of 2011, the National Statistical Institute (NSI) reported. Wages were still the main source of households’ income, accounting for 53.1% of the total amount. The average per capita income from wages stood at BGN 595 in Q3 2012, registering a 19.2% increase, compared to the same quarter of last year. The relative share of wages in the total income increased by 2.1 percentage points over the period. Pensions were the second most important source of income for Bulgarian households. However, their share in the total income declined by 3.3% and accounted for 25.7% of it. In Q3 2012, incomes from pensions increased by 1.3% in nominal terms, compared to Q3 2011, reaching an average of BGN 288 per capital in a household. In Q3 2012, incomes from self-employment per capita in a household increased from the same period of 2011, reaching BGN 94 and their relative share in the total income decreased by 0.6%, accounting for 8.4% of its structure. Social security incomes and benefits had a relatively insignificant importance for the total amount of household incomes. They rose during the period from BGN 36 to BGN 39 per household but their share decreased by 0.2 percentage points over the period and accounted for 3.5% of the total income. The total expenses per capita in a household stood at BGN 1,033 in Q3 2012, registering an increase of 12.6% over the same period of the previous year. Spending on food and housing (electricity, gas, water, etc.) had the largest share in the formation of total household expenses, accounting for 52.6% of all expenditures.
Source: Class (16.11.2012)

GDP grows by 0.5% on an annual basis In Q3 2012, Bulgaria’s GDP grew by 0.5% on an annual basis and by 0.1%, compared to Q2 2012, showed National Statistical Institute (NSI) express data. In Q3 2012, GDP reached BGN 21.735 bn in nominal terms and the value added stood at BGN 18.571 bn, the largest share of it being accounted for by the service sector (57.3%), followed by industry (31.2%) and agriculture (11.5%). In Q3 2012, GDP increased by 0.1%, compared to Q3 2011. Within the same period, the gross value added also increased by 0.1%. The exports of goods and services in Q3 2012 grew by 0.2%, compared to the previous quarter, while imports of goods and services decreased by 3.7%. In Q3 2012, GDP grew by 0.5% over the same quarter of the previous year. Meanwhile, the gross value added increased by 0.2%. An increase was registered in the agricultural and industrial sectors of 6.3% and 3.5%, respectively. The service sector, accounting for the largest share in the value added, had a negative contribution and reported a decrease of 1% over the period.
Source: Class (16.11.2012)

Prices of staple foods rise by 5% to 15% in three months “The prices of staple foods, including vegetable oil, pork and flour, rose by 5% to 15% in the last three months,” Edward Stoychev, Chairman of the State Commission on Commodity Exchanges and Wholesale Markets, announced on Thursday, quoted by Focus news agency. Within this period, however, the prices of eggs did not increase, added Stoychev and specified that he expects a decline of meat prices since this is a global trend. “Consumption should increase during the Christmas season, this is normal and it happens every year. Judging by market principles, I would not expect an increase in the prices of goods. You know that every year during the holidays there is a surprising price hike of a staple food product and after the hysteric holiday shopping it goes back to normal levels. This is not consistent with market principles – it is a typically Bulgarian phenomenon,” commented Stoychev. Consumers look for Bulgarian-made products and, therefore, more than 80% of the commodities advertised as Bulgarian are not actually such,” added Edward Stoychev.
Source: Class (16.11.2012)

Bulgaria's Unemployment Hits 11% in Oct 2012 Unemployment in Bulgaria has reached 11% in October 2012, according to data of the Employment Agency, which is 0.4% higher than September. Most of those who lost their jobs were seasonal workers in the sectors of tourism, transport, trade and farming. 6 000 have started jobs under the EU operational program Human Resources Development and employment programs, while a total of 18 139 have found work in October, which is by 1 200 higher, compared to October 2011. 5 600 job openings were listed for unemployed youth, age 29 and under. On Thursday, Social Policy and Labor Minister, Totyu Mladenov, declared the fight against unemployment will be the priority of his institution during 2013. He has already ordered the opening of 600 offices of the Employment Agency in smaller towns, with the focus being on young people, people over the age of 55, and the disabled. BGN 452 M have been slated for their education and training. Mladenov further promised more daycare centers so that young mothers can quickly rejoin the work force. He voiced hope retirees with the lowest pensions will be able to receive the so-called "Christmas bonuses," on grounds the revenues in the State budget were coming according to the plan
Source: Capital (19.11.2012)

Bulgarian Entrepreneurs Predict 27% Increase in Industrial Investments in 2013 Industrial entrepreneurs in Bulgaria expect an annual increase in investments by 4.3% by end-2012, according to a survey of the National Statistical Institute (NSI) conducted in October. Investments in the energy and water-related industries make up the largest relative share of the projected investments for 2012, at 43.2%, followed by industries producing intermediate goods, at 30.4%, and industries producing non-durable consumer goods, at 17.0%. In 2013, industry investments are expected to grow by 27% on an annual basis, In 2013, investments in energy and water-related industries are expected to have the largest relative share of the total, at 51.1%, followed by industries producing intermediate goods, at 31.5%, and industries producing non-durable goods, at 10.3%. About 40% of the enterprises polled do not plan any expenditure on acquiring fixed assets in 2013. The largest share of investments, 44.2%, is expected to go to the mechanization or automatization of production processes and to the introduction of new production technologies. An estimated 25.6% of investments are to be allocated to increasing production capacity, while another 20.4% are to be used for replacing worn-out equipment, and a mere 9.8% are to be earmarked for environmental protection measures, security measures, etc. As regards the factors of "demand for products", "financial resources or expected profits", and "technical factors", they are mostly expected to have a "stimulating" or "very stimulating" impact in 2013. At the same time, "other factors", 20.7% of the enterprises expect their influence to be "stimulating", while 43.9% abstain from making a forecast.
Source: Darik Radio (19.11.2012)

Commission for Protection of Competition (CPC) fined National Statistical Institute (NSI) with BGN 95,569 because of a tender for the supply of airline tickets, hotel reservations and ground transportation over the next three years. The penalty is equal to 10 percent of the estimated contract value – BGN 955,696, and the reason is that instead of terminating the tender due to procedural violations, NSI signed a contract with the ranked first Bulgarian VIP Travel. Indeed, the Commission itself allowed NSI to sign the contract with the tour operator, despite a complaint made by rival Elite Travel International. However, subsequent investigation showed that the complaint is well-grounded, and the tender was conducted in violation. Bulgarian VIP Travel is one of three companies fined by the regulator in 2010 for a cartel and price-fixing in an order for tickets for the government worth BGN 25 million. Penalty for the company was BGN 47.3 thousand, for Hornit – BGN 48.5 thousand and for Astral Holidays – BGN 2.8 million.
Source: Capital (20.11.2012)

Agricultural goods’ prices up 19% in Q3 2012 In Q3 2012, producer prices in agriculture rose by 19.2%, compared to the same quarter of 2011, showed National Statistical Institute (NSI) data. The drastic surge is mainly due to producer prices in plant-growing, which have increased by 23.1%, while prices of products from livestock-breeding rose by 2.9%. An increase over the previous year was observed in the prices of soft wheat (32.3%), corn (11.7%), barley (22.8%), sunflower (20.8%), vegetables (14.2%) and fruits (32.0%). The price increase of products from animal origin was as follows: 4.8% for meat from cattle, 13.3% for poultry and 22.1% for hens’ eggs. A slight decline was registered only in the wholesale prices of pork (2.5%) and cow’s milk (4%). The index of prices of agricultural goods and services for immediate consumption in Q3 2012 was 7.7% above their level for the same quarter of 2011. The prices of electricity and fuels rose considerably – by 9%, these of fertilisers - by 11.4%, of veterinary medical products - by 7.3% and of fodder – by 17%. The prices of seeds and seedlings have increased by just 2.8% until now
Source: Class (20.11.2012)

Bulgarian Business Becomes More Pessimistic "The expectations of the Bulgarian business about the economic environment in 2013 are deteriorating. More and more companies expect their revenues from sales to contract, along with the investments and the employment rate in the country. On the whole, the business climate in Bulgaria is expected to deteriorate in 2013. This becomes clear from the results of the annual survey of the European Chambers of Commerce and Industry, carried out in 26 EU member states and including 631 Bulgarian companies" said Mr. Tsvetan Simeonov, Chairman of the Bulgarian Chamber of Commerce and Industry. Furthermore, the businessmen expect that the Bulgarian economy will become more unstable next year. Simeonov went on to say that many of the expectations of the Bulgarian business about the economic situation in 2012 never came true - only twenty percent of the companies were aware of what the business climate would be in 2012. About 24% of the Bulgarian companies expect the business climate in the country to deteriorate in 2013, against only nine percent in 2011. Thirty-seven percent of the businessmen who took the survey said they did not expect any changes in the business environment next year, against thirty-four percent last year. About 40% of the companies are still optimistic about the near future, but last year their share was 57%. More and more companies are expecting their revenues from sales to shrink, hence the expectation for more unemployed Bulgarians in 2013. Only eighteen percent of the companies say they may recruit new personnel next year. Simeonov made it a point that the Bulgarian companies should eye markets such as India, China and the Far East.
Source: Standart (21.11.2012)

Turnover of the transport sector shrinks, that of business services - grows The turnover of transport companies shrank in Q3 2012 both on a monthly and on an annual basis, while that of business services reported growth, showed data of the National Statistical Institute (NSI). The comparison with Q3 2011 showed a significant decrease in the turnover of air and water transport - of 15.1% and 21.4%, respectively. The performance of the sector as a whole was positive on an annual basis thanks to the reported 9.8% growth in land transport and the 8.7% increase in postal and courier services. The Q3 2012 decrease in the turnover of transport and logistics was 2.7%, compared to Q2 2012. The biggest decline was reported in air transport (7.9%) and water transport (7.6%), while that in land transport was just 1.4%. The decline of turnover in the telecommunications sector for the quarter was 10.3% for Q3 2012 and 6.1% year-on-year. The companies providing business services reported some 22.1% growth in July-September 2012, compared to the same period of 2011. The highest quarterly growth of turnover - 9.2% - was registered in the area of legal and tax consultations, accounting and auditing services. The performance of employment agents was also good, with a 24.6% increase on an annual basis and a 3.5% growth on a quarterly basis. Tour operators reported an increase of 23.7% year-on-year and of 2.8% for Q3 2012. The turnover in publishing registered a significant drop in Q3 2012 - 18.7% on an annual basis and an increase of 2.1% on a quarterly basis. The situation in advertising agencies was similar. In Q3 2012, their turnover reported a significant decrease - 21.3%, compared to Q3 2011 and an increase of 4.8%, compared to Q2 2012. Movies, television shows and sound recordings produced in July-September 2012 were 9.5% less than in the same period last year and in the previous quarter.
Source: Class (22.11.2012)

Bulgaria's Unemployment Rate Hits 11.5% in Q3 2012 In the third quarter of 2012, the unemployment rate in Bulgaria was 11.5%, by 1.3% higher compared to the same quarter of 2011. This is the final data from the Labor Force Survey (LFS) of the National Statistical Institute (NSI) published Wednesday. According to it, the activity rate of population aged 15 - 64 was 68.6%, by 1.9 % higher in comparison with the third quarter of 20111. The employment rate of population aged 15 - 64 was 60.6%, by 0.8 % above its value for the corresponding quarter of the previous year. Discouraged persons aged 15 - 64 were 210.0 thousand, representing 13.6% of the total number of inactive persons in the same age group. In the third quarter of 2012, the total number of employed persons (aged 15 years and over) was 3 017.1 thousand, representing 47.9% of population in the same age group. In comparison with the same quarter of 2011, the number of employed declined by 19.4 thousand, and their relative share was by 0.2 % higher. Between the third quarters of 2011 and 2012, a decrease of employment was observed only for men - the number of employed men decreased by 1.6%. In the third quarter of 2012, 1 584.6 thousand (52.5%) of all employed persons were men and 1 432.5 thousand (47.5%) were women. From those employed 840.1 thousand have college degrees, or 27.8% of all people with jobs. 1 836.0 thousand (60.9%) have graduated from high school and 341.0 thousand (11.3%) have middle school or elementary education. Compared with the third quarter of 2011, a decrease was registered in the number of employed who have elementary, middle and high school education. Out of the total number of employed persons 3.5% (105.0 thousand) were employers, 7.5% (224.8 thousand) were self-employed (without employees), 88.2% (2 660.7 thousand) were employees and 0.9% (26.6 thousand) were unpaid family workers. In the private sector, there were 1 934.7 thousand (72.7%) employees, and in the public sector - 726.0 thousand (27.3%). In the third quarter of 2012, 1 868.3 thousand people worked in the service sector (61.9% of all employed persons), in industry - 933.9 thousand (31.0%), and 215.0 thousand (7.1%) were in agriculture, forestry and fishing. 2 978.4 thousand employed persons were under the age of 65. The employment rate for the population aged 15 - 64 was 60.6% and by sex it was 63.1% for men and 58.0% for women. The employment rate for population aged 15 - 29 years was 40.3% (44.1% for men and 36.1% for women). The employment rate for population aged 20 - 64 (a European 2020 indicator) was 64.8%, by 0.4 % higher compared to the same quarter of the previous year. The employment rate for women (61.9%) rose by 0.9 % while for men (67.6%) decreased by 0.2 %. Employed persons aged 55 - 64 years were 492.5 thousand, 47.0% of population of the same age group, and compared with the third quarter of 2011 an increase in participation in employment was observed for both women (by 3.0 %) and men (by 1.1 %) from this age group. In the third quarter of 2012, 393.2 thousand persons were unemployed, of whom 231.5 were men and 161.8 were women. In comparison with the third quarter of 2011, the number of unemployed rose by 13.5%. The unemployment rate increased for the same period by 1.3 % and during the third quarter of 2012 was 11.5%. The rate went up by 1.7 % for men and by 0.7 % for women and reached 12.7 and 10.1% respectively. The number of long-term unemployed was 221.7 thousand, which was 56.4% of all unemployed and compared to the third quarter of previous year their number rose by 6.5%. The long-term unemployment rate went up by 0.3 % and achieved 6.5% in the third quarter of the current year, respectively 7.2% for men and 5.7% for women. In the third quarter of 2012, 323.3 thousand (82.2%) of all unemployed persons had previous employment experience, as their number went up by 14.7%, compared to the same quarter of 2011. The number of the unemployed, who were looking for their first job rose by 8.3% and during the third quarter of 2012 reached 70.0 thousand. The unemployment rate for the population aged 15 - 29 was 18.9% (20.4% for men and 16.9% for women) and in comparison with the third quarter of 2011 grew up by 2.7 % as the increase was higher for men (by 4.2 %) than women (by 0.7 %).
Source: investor.bg (22.11.2012)

Foreign direct investment in Bulgaria for January - September 2012 amounted to EUR 971.8 million from the EUR 711.9 million in the first nine months of last year. Despite this growth, September was a critical month in terms of foreign investment. The outflow of EUR 167 million was due to the payment of debts to mother-companies. Greenfield investments and purchases of real estate in the country contribute to EUR 88 million. Revenues from privatization in September and reinvested profit is EUR 7 million. The growth of FDI in the first nine months due to loans made in the first quarter. The largest direct investment in the country comes from the Netherlands (EUR 611.3 million), Russia (EUR 139.9 million) and Switzerland (EUR 101.1 million). The largest negative net flows for the period is to Germany (EUR -249.2 million) to Greece (EUR -67.8 million).
Source: 1kam1.com (22.11.2012)

The number of Bulgarian nationals who made tourist trips in the third quarter of 2012 was approximately 1 205 000, according to Bulgaria's National Statistical Institute. The vast majority of them (83.2%) travelled only within the country, while 12.9% traveled only abroad and 3.9% choose both options. Compared to the same quarter of 2011 the number of Bulgarian tourists aged 15 and older decreased by 20.8%. A 23.5% decrease was observed in the number of the Bulgarian residents who travelled in the country , while the number of Bulgarian tourists abroad decreased by 4.2%.
Source: Capital (26.11.2012)

Trips of Bulgarians Abroad Down 18% in Oct 2012 M/M In October 2012, the number of the trips of Bulgarian residents abroad was 281.5 thousand or by 15.7% less than in September 2012 and by 4.9% under the registered in October 2011. The data was released Tuesday the National Statistics Institute (NSI). In comparison with the same month of the previous year, a decrease in the total number of the trips of Bulgarian residents was reported to: Serbia - by 29.3%, Turkey - by 28.0%, FYROM - 26.4% and Romania - by 19.3%. At the same time, an increase was observed in trips to: Austria - by 108.6%, the United Kingdom - by 103.9%, Italy - by 97.3%, and Spain - by 56.9%. Trips with other purposes (as guest, education and visits of cultural and sport events) composed the greatest share of the total number of trips of Bulgarian residents abroad - 47.2%, followed by the trips with holiday and recreation purposes - 29.3% and with professional purpose - 23.5%. In comparison with October 2011, an increase was observed in the trips with holiday and recreation purpose, as well as these with other purposes, trips with professional purposes registered a decrease. In October 2012, trips with other purposes formed 63.9% from all trips to the United Kingdom, 58.3% - to Germany, 53.7% - to Greece. Trips to Spain and Turkey were predominantly with holiday and recreation purpose - 52.6 and 42.1% respectively, while to Belgium and France they had professional purpose - 66.7 and 50.0% respectively of all trips of Bulgarian residents to these countries. In October 2012, the number of arrivals of visitors from abroad to Bulgaria was 524.0 thousand which was by 51.6% less compared to September 2012 and by 3.0% above the level from October 2011. An increase in visits with holiday and recreation purpose - by 7.3% and with professional purpose - by 3.8% was registered, while visits with other purposes decreased by 1.0%. The visits of the citizens of European Union composed the greatest relative share of the total number of foreigners who visited Bulgaria - 56.5%, followed by these from the other European countries - 34.7%. In comparison with the same month of the previous year, arrivals of visitors from EU Member States increased by 0.4%. A significant increase was observed in the visits of the citizens from France - by 9.0%, Greece - by 8.1%, Austria - by 6.4% and the United Kingdom - by 6.0%. However, visits from Romania - by 5.9% and Italy - by 3.3% registered a drop. The visits of foreigners in the group "Other European Countries" increased by 8.5% as the highest growth was observed in visits of citizens of the Russian Federation and Turkey - by 41.8% and 19.5% respectively. In October 2012, visits to Bulgaria with other purposes (including as guest and passing transit) had the largest share - 42.4%, followed by arrivals with holiday and recreation purposes - 39.3% and with professional purpose - 18.3%. The visits with holiday and recreation purposes formed 80.0% of the arrivals from FYROM, 70.4% - from United Kingdom, 60.4% - from Serbia and 53.0% - from Russia. The visits with professional purpose were 64.0% of all arrivals from Spain and 59.8% - from Austria, while 76.0% of the arrivals from Turkey, 64.6% - from Ukraine and 49.5% - from Greece were with other purpose.
Source: Other (27.11.2012)

Trips of Bulgarians abroad down by 4.9% on an annual basis Trips of Bulgarians citizens abroad in October 2012 totaled 281,500, or 15.7% less than in September 2012 and 4.9% less than a year ago, the National Statistical Institute (NSI) reported on Tuesday. A decrease in the number of Bulgarians’ trips, compared to the same month of last year, was registered in terms of trips to Serbia (29.3%), Turkey (28%), Macedonia (26.4%) and Romania (19.3%). Meanwhile, the number of trips to Austria increased by 108.6%, those to the UK - by 103.9%, to Italy - by 97.3% and to Spain - by 56.9%. The largest share in the total number of Bulgarian residents’ trips abroad was accounted for by trips for other purposes (staying as guests, education, attending cultural and sports events, etc.) - 47.2%, followed by visits abroad for holidays and tours - 29.3%, and business trips - 23.5%. An increase on an annual basis was reported in the number of holidays and tours and trips for other purposes - by 46.6% and 73.1%, respectively, while a decrease was registered in the number of business trips - by 59.3%. In October 2012, some 63.9% of the trips to the UK were for other purposes, as well as 58.3% of those to Germany and 53.7% of those to Greece. The majority of trips to Spain and Turkey were for holidays or tours - 52.6% and 42.1%, respectively, while 66.7% of the trips to Belgium and 50% of those to France were business trips. In October 2012, foreigners’ visits to Bulgaria totaled 524,000, or 51.6% less than the previous month and 3% more than a year ago. An increase was registered in the visits of citizens from France - 9.0%, Greece - 8.1%, Austria - 6.4%, and the UK - 6.0%. At the same time, visits of Romanian citizens dropped by 5.9% and those of Italians - by 3.3%. Visits of citizens from the group of ‘other European countries’ rose by 8.5%, the greatest increase being in trips of Russian and Turkish citizens – 41.8% and 19.5%, respectively. In October 2012, the predominant share of visits to Bulgaria were for other purposes (including staying as guests and transit trips) - 42.4%, followed by those for vacation and tours - 39.3%, and business trips - 18.3%.
Source: Class (28.11.2012)

Bulgaria's business climate has improved slightly in November 2012, according to the country's National Statistical Institute. In November 2012 the total business climate indicator in Bulgaria has increased by 0.9% compared to October. The business climate has improved in industry and in the service sector, while deterioration has been observed in construction and retail trade. The business climate in industry has inproved by 3.5% in comparison with the previous month. The "business climate in construction" indicator has dropped by 5.3 %, while the "business climate in retail trade" indicator has decreased by 1.2% in comparison with the previous month. The "business climate in the service sector" indicator has increased by 3.6% compared to the previous month.
Source: Capital (29.11.2012)

The business climate improves slightly in November In November, the overall business climate indicator increased slightly by 0.9 percentage points, compared to its October level, according to the National Statistical Institute (NSI). A better business climate was registered in the industry and service sectors, while construction and retail trade suffered a worsening economic situation. The business climate index in the industry sector increased by 3.5 percentage points, compared to the previous month, mainly due to managers' more favourable estimates of the business state of enterprises in the next six months. The survey registered some improvement in the production activity, with orders from abroad, which is accompanied by increased expectations about the activity in the next three months. The main factors limiting the development of businesses in the sector are still the uncertain economic environment and the insufficient domestic demand, as their negative impact increased last month. The business climate index in the construction sector, however, fell by 5.3 percentage points. This fact is due to managers' growing pessimism in their assessments and expectations about the business state of enterprises. There is also a downward trend in expectations in terms of employment in the sector. The main factors limiting the activity in the sector are still the uncertain economic environment, as well as financial problems. These have been pointed out by 74% and 51% of surveyed executives, respectively. On the other hand, expectations of construction developers about selling prices of their products are that they will remain unchanged over the next three months. With the oncoming Christmas shopping season, the business climate index in retail trade fell by 1.2 percentage points, compared to October. Managers' assessments and expectations about the business state of enterprises in the industry are worsening. However, retailers expressed optimism in their forecasts for sales volumes and orders to suppliers for the next three months. The uncertain economic environment continues to be the most significant factor limiting the activity of enterprises. Last month, the negative impact of the ‘competition in the sector’ and ‘demand in the sector’ factors has decreased by 8.2 percentage points and 10.5 percentage points, respectively. At the same time, managers' expectations about selling prices in the sector are that they will increase a little over the next three months. Recently, the service sector has become a little more optimistic. Therefore, the business climate index in the service sector rose by 3.6 percentage points, compared to the previous month.
Source: Class (29.11.2012)

Bulgarian Business Community Regains Optimism The business climate in November improves compared to October 2012, the National Statistical Institute (NSI) reported. The business climate in the sectors of industry and services improves while in construction sector and retail trade it is slightly worsening. The optimistic expectations of the company managers in industry for the coming 6 months increases. The number of orders for export production also improves and most of the businessmen in the industry sector do not intend to increase the sale prices in the coming three months. The company managers in the field of services are also more optimistic and they also do not plan to make hikes in the prices. At the same time the managers of companies in the retail trade sector prepare hikes in their prices and their opinion is that the business climate in their field is deteriorating. The construction sector is also quite pessimistic and they expect job cuts.
Source: Standart (29.11.2012)

Bulgaria Concentrates on Export to Non-EU Countries Bulgaria will concentrate its effort on the export to non-EU countries in the coming years, said Minister of Economy and Energy Delian Dobrev. “We will finance concrete projects under “Competitiveness” operational program,” he commented. During the next programming period (2014-2020) Bulgaria will focus on three major sectors – energy efficiency, innovations and export-oriented industry with a special accent on the thriving emerging markets: China, India and Turkey. In 2010-2011 Bulgaria scored over 20-percent growth in exports. This year we have more modest results, which is natural in times of global economic slowdown. Bulgaria exports 72 percent of its produce to the EU countries, only 28 percent is exported to the non-EU states. We have to concentrate more on these economies, Dobrev said further. He also said that in the last decade China has been boasting steady economic growth of 10 percent y/y, while India and Turkey mark 7-8-percent growth. Meanwhile EU can boast a growth of only 1-3 percent. The minister is convinced that Bulgaria will receive more ample EU funds under the “Competiveness” OP in the next programming period as currently they gross 1.17 billion euro.
Source: Standart (29.11.2012)

A BGN 74 mln budget deficit registered in October The budget deficit of the consolidated fiscal programme (CFP) stood at BGN 74.2 mln at the end of October, the Ministry of Finance reported. It is formed from a BGN 477 mln surplus in the national budget and a BGN 551.2 mln deficit of European funds. At the end of October, revenues amounted to BGN 22.13 bn, or 77% of those planned for 2012. Compared to the same period of last year, the revenues registered a nominal growth of 7.8% (BGN 1.61 bn), mainly due to growth in indirect taxes and non-tax revenues. The total amount of tax revenues was BGN 17.81 bn at the end of October, or 82.5% of the annual estimates. Revenues from direct taxes exceeded BGN 3.21 bn (83.7% of those planned for the year) and indirect taxes totaled BGN 9.34 bn (82.1% of the planned for 2012). Proceeds from VAT amounted to BGN 5.82 bn (82% of the planned amount), these from excise duties were BGN 3.39 bn (82.1% of the estimates) and these from customs duties - nearly BGN 100 mln (83.1% of the projected amount). As of October 31, social and health insurance contributions amounted to BGN 4.56 bn, accounting for 82.1% of the estimates for the year. CFP costs totaled BGN 22.2 bn at the end of October, representing 74.4% of the annual estimates. Compared to the same period of last year, an increase was observed in capital expenditures and social and health insurance payments. The fiscal reserve stood at BGN 6.6 bn as of October 31.
Source: Class (04.12.2012)

Bulgaria tops EU poverty risk ranking Bulgaria has the highest rate of persons at risk of poverty or social exclusion in the European Union (EU), Eurostat, the statistics office, warned. Some 49% of Bulgarian citizens are on the brink of poverty, showed the latest report from Brussels. Romania and Latvia occupy second and third place, respectively, with 40% each, followed by Lithuania, Greece and Hungary, with 33% for the Baltic state and 31% for the latter two. The Netherlands and Sweden are at the bottom of the ranking with 16% and the Czech Republic with 15%. Currently, almost one in four EU citizens is plagued by low income and social exclusion, according to Eurostat. Poverty is a palpable threat for another 17% of people living within the currency union. Bulgaria has the worst ranking in terms of one more criteria. Officials in Brussels say nearly 9% of EU citizens lack material wealth, their share reaching 44% in Bulgaria. By contrast, only one percent of the population of Luxembourg and Sweden share the same fate. Unemployment in Bulgaria has risen to 12.6% in October, according to data from Eurostat. There was a slight upward revision of the rate for September to 12.5% from the preliminary reading of 12.4%. The National Employment Agency (NEA) recorded an increase in the number of unemployed in October, which is a serious deviation from the Eurostat figures explained by the difference in methodology. According to NEA the unemployment rate has risen to 11% after the summer season effects wound down. Unemployment rose to 11.7% for the Eurozone in October and 10.7% for the whole EU.
Source: Class (04.12.2012)

Bulgaria's youth unemployment (referring to persons aged under 29) made up 21.5% of the total number of jobless people in the country at the end of October 2012, according to official figures from the State Employment Agency released Monday. According to the Agency, a total of 77 738 people below 29 years of age were registered as unemployed by its offices; pundits have been suggesting that the actual number of unemployed youth in Bulgaria is considerably higher. The Bulgarian Employment Agency does state, however, that in the first 10 months of 2012 almost 10 000 youth have found some form of employment in government-funded or EU-funded programs or internships. For example, a total of 1 500 young people got 9-month paid internships at state institutions under the Career Start Program, while 2 000 got employment under temporary government job programs. Another 6 400 were involved in other government-sponsored employment options. Over 25 000 Bulgarian youth have been hired by private employers around the country in January-October 2012, according to government data. Bulgaria's government plans to sponsor employment measures for 5 000 people aged below 29 in 2013, while another 8 400 are expected to be included in training and employment programs funded from EU Operational Program "Human Resources" worth a total of BGN 53 M.
Source: money.bg (04.12.2012)

NSSI: 1,417 firms wind up operations as of October 2012 Some 1,417 firms have wound up their operations between the start of the year and October, according to data from the National Social Security Institute (NSSI). Of those, 202 are based in Plovdiv, which makes it the fourth largest source of failed businesses among big cities. The bulk of companies which went out of business are headquartered in Sofia – 509, followed by Bourgas with 255 and Varna – 220. Some 128 entrepreneurs from Rousse and 103 more from Stara Zagora have filed for an orderly wind-up procedure. The number of firms that ceased operation has grown markedly in the last three months. In the first nine months of 2012, 10,500 self-employed individuals have closed down their practices, mostly free-lancers such as lawyers, journalists, farmers, etc. Nearly 24,000 firms have wound up their operations since the start of 2005. More than BGN 210 mln in delayed workers' compensation was duly paid out following a series of inspections carried out between the middle of 2009 and November 2012, according to reports from the General Labour Inspectorate Executive Agency. The number of firms with outstanding salary payments has decreased, however small the change might be, showed data from monitoring reports between January and November this year. Only 4% of firms subjected to regulatory review in 2012 have been found out to be in arrears with their workers' pay, compared to 4.31% in 2011.
Source: Class (05.12.2012)

Maximum social security threshold to be BGN 2200 BGN 2200 will be the maximum social security threshold. This was the decision of the lawmakers at the second reading of the Law on Social Security Insurace. For self employed, the minimum income threshold for social security for income of over BGN 5400 would be BGN 420 and for income of over BGN 7,500 – BGN 550. The minimum monthly income for farmers and tobacco-growers will is to remain BGN 240.
Source: Darik Radio (06.12.2012)

Bulgarians Are the EU Pessimists Bulgaria falls into the group of seven most pessimistically minded nations in the EU. The Bulgarians have a gloomy outlook towards the financial future of their households in 2013, shows the analysis of Eurostat. Greeks are the bitterest in their expectations for the future – 45 percent of them think that it is grim. The next on the list of pessimist are Hungary, Malta and Portugal. Bulgaria is in the group together with Lithuania and Italy scoring 40 percentage points. Denmark, Norway and Luxemburg are the EU optimists with only 10 percent of their population look pessimistically into the future. Finland, Great Britain, Romania, Estonia and Holland also fall into the group of optimists.
Source: Standart (06.12.2012)

GDP grows 0.5% in the third quarter Bulgaria's gross domestic product (GDP) recorded a 0.5% growth year-on-year in the third quarter. The increase is just 0.1%, compared to the previous three months, according to the latest NSI data. For the three months to September, GDP amounted to BGN 21.73 bn, based on current prices. In Euro terms, the amount stands at ˆ11.11 bn, or ˆ1,522 per capita. The break-down shows that industry grew by 2.6% year-on-year and by 0.6% from the previous quarter. Agriculture grew by 7%, compared to a year earlier, but was flat on a quarterly basis. The industry makes up 26.2% of GDP, while agriculture accounts for only 10%. The service sector is the biggest – 49%. Finance and insurance grew by 3.6% year-on-year, while the category Professional, Scientific and Technical activities; Administrative and Support Service Activities contributed an additional 9.8% to GDP. The double-digit growth in exports last year has been replaced by a rate of only 3.3%, while imports increased by 4%. Consumer spending took up 70% of the economic output in the third quarter of 2012. Capital spending formed 16.7% of GDP. The trade balance, including goods and services, shows a surplus of BGN 1.84 bn. According to NSI, the highest economic growth in the EU during Q3 2012 vs the previous quarter was reported in Estonia - 1.7%, Latvia - 1.7%, Lithuania - 1.3%, the United Kingdom - 1%, and Slovakia - 0.6%, while the Netherlands, Portugal, Slovenia, Cyprus and Romania registered a decrease by 1.1%, 0.8%, 0.6%, 0.5% and 0.5%, respectively. Compared to Q3 2011, seasonally adjusted data showed a 0.4% decrease in GDP in the EU-27. Within the same period, GDP grew by 0.5% in Bulgaria. During Q3 2012, the highest economic growth vs Q3 2011 was registered in Latvia - 5.3%, Estonia - 3.4%, Lithuania - 3.3%, and Slovakia - 2.5%, while Greece reported a decrease of 7.2%, Portugal - 3.4%, Slovenia - 2.9%, and Italy - 2.4%.
Source: Class (07.12.2012)

The planned deficit for 2013 amounts to over BGN 800 mln The planned budget deficit for 2013 is projected to amount to BGN 802.6 mln and will be covered through internal financing. This was decided by lawmakers at second reading on the parameters of the 2013 Budget Law. Next year's budget revenues will amount to more than BGN 18.41 bn and costs - to about BGN 19.21 bn. The EU's contribution to the common budget will amount to BGN 908 mln. The major part of the budget revenues - BGN 16.64 bn - is expected to be provided through the corporate tax. MPs voted that costs of the Administration of the President in the coming year will amount to BGN 6.33 mln, while those of the Council of Ministers - to BGN 72.6 mln. Ministries, the spending of which will exceed BGN 1 mln in 2013, will be the MIA (BGN 1.31 bn) and the Ministry of Defence (BGN 1.08 bn). The Social Ministry's spending will amount to nearly BGN 1 bn. The budget also provides a nearly BGN 120 mln reserve for so-called "unexpected and urgent expenditures", which will be spent at the discretion of the Government. About BGN 70 mln of these will be allocated for preventing or overcoming natural disasters. Lawmakers voted that, in 2013, the maximum amount of new debt should not exceed BGN 2 bn, and, at the end of the year, the total debt should be less than BGN 14.6 bn. The Government has the right to issue state guarantees next year up to the total amount of BGN 100 mln. "This is the best possible budget, given the money we have," said Prime Minister Boyko Borissov regarding the adoption of the budget for the following year in Parliament. He commented that "No one will ever help Bulgaria. Greece, Spain and Portugal have supporters. No one will ever help us, if we don't do our own job." Asked whether pensioners will enjoy Christmas bonuses, Borissov said: "If there is money - with pleasure, but if there is no money - we will not put the fisc at risk."
Source: Class (07.12.2012)

Bulgaria's gross domestic product (GDP) went up by 0.1% on the quarter and by 0.5% on the year in the three months through September, seasonally-adjusted data of the country's statistics office indicated on Thursday. The figures were in line with flash estimate data released by the statistics office, NSI, last month. In the second quarter of 2012, the country's GDP climbed up by 0.3% from the previous three months and expanded by 0.5% year-on-year, according to seasonally-adjusted data. GDP totalled 21.73 billion levs ($14.5 billion/11.1 billion euro) at current prices in the July-September period, according to preliminary data, NSI said in a statement. Gross value added inched up by 0.1% compared to the second quarter of 2012 and was 0.2% higher compared to the same quarter of 2011. Agriculture increased its share in the gross value added of the economy by 1.7 percentage points on the year to 11.8% in the third quarter of 2012. The share of industrial sector reached 30.8%, down by 0.3 percentage points. The share of services decreased to 57.4% from 58.8% a year earlier. Last year Bulgaria's economy expanded by a real 1.7%, compared to an increase of 0.4% in 2010. The government in Sofia has projected real economic growth of 2.3% in the 2012 state budget. It expects the country's economy to grow by between 2.5% and 4.0% annually in the 2013-2015 period. In October, the International Monetary Fund raised its forecast for Bulgaria's 2012 economic growth to 1.0% from 0.8% projected in May, mostly reflecting stronger domestic demand.
Source: Darik Radio (07.12.2012)

Bulgarian Economy Grows 0.5% in Q3 2012 The Bulgarian economy has grown 0.5% y/y in the third quarter of 2012. The growth of the GDP from the previous quarter is just 0.1%. in fact, the economy has been growing by half a percent in each of the past three trimesters. Although insignificant, this growth means that Bulgaria’s economy is doing much better than the other EU member states - the Eurozone is officially in recession, while the average GDP growth for the whole EU is 0.1% from the previous quarter of 2012 and a 0.4-percent drop year-on-year. Bulgaria’s GDP per capita in Q3 2012 is 1,522 euros.
Source: Standart (07.12.2012)

Bulgaria's seasonally adjusted industrial production index decreased by 0.4% in October 2012 compared with the previous month. In October 2012 the country's working day adjusted industrial production index fell by 4.1% in comparison with the same month of 2011, according to the Bulgarian National Statistical Institute. In October 2012 as compared to September 2012, the seasonally adjusted industrial production index in the electricity, gas, steam and air conditioning supply decreased by 1.0%, while increases were seen in the manufacturing by 0.6% and in the mining and quarrying industry by 0.4%. Compared with October 2011, the working day adjusted industrial production index in the electricity, gas, steam and air conditioning supply decreased by 11.9%. The index in manufacturing decreased by 2.1%, while the mining and quarrying industry saw a 1.9% increase.
Source: Capital (10.12.2012)

Bulgaria's exports to the rest of the EU decreased by 2.6% in the period January-September 2012 compared to the corresponding period of the previous year and amounted to BGN 17.8 B. The main trade partners of Bulgaria were Germany, Italy, Romania, Greece, France and Belgium that formed 70.8% of the exports to the EU member states in that period, according to Bulgaria's National Statistical Institute. In September 2012 Bulgaria's exports to the rest of the EU decreased by 4.8% compared to the corresponding month of the previous year and amounted to BGN 2.1 B. Bulgaria's imports from the EU in the period January - September 2012 increased by 10.4% compared to the corresponding period of the previous year and added up to BGN 21.7 B at CIF prices. The largest amounts were reported for the goods imported from Germany, Italy, Romania, Greece and Spain.
Source: Capital (11.12.2012)

Record-high BGN 673 mln trade deficit for October The National Statistical Institute (NSI) registered a slight increase in imports and exports in October. Exports rose by only 2.8% (vs a double-digit growth last year) on an annual basis to BGN 3.63 bn, while imports grew by 7.9% to BGN 4.3 bn. The trade deficit for October free on border is estimated at BGN 673 mln, which is record-high for the last four years. From the beginning of 2012 till October, exports accumulated to BGN 33.8 bn and imports are estimated at BGN 39.9 bn. Thus, a trade deficit of BGN 6.06 bn was reported for the first ten months of the year. Within this period, Bulgaria’s exports to the EU declined by 3.2% year-on-year, while these to other countries rose by 11.1%. In October 2012 alone, our country’s exports to the EU declined by 8.1% on an annual basis and these to other countries increased by 22.7%. NSI’s data on the imports from the EU showed an increase of 9.3% for the January-October period, while imports from other countries increased by 12.8%. Imports from the EU in October alone increased by 2% and these from other countries grow by 18%. Bulgaria’s main trade partners are Turkey, China, Russia, Serbia, Macedonia and the United States, accounting for 51.4% of the exports to third countries. Imports from Russia, Turkey, China and the Ukraine were the largest in terms of value. The largest growth in exports was recorded in the sectors Beverages, Spirits and Tobacco (27.4%) and Unprocessed Raw Inedible Products (22.5%). The largest percentage increase in imports from third countries was registered in the sector Fats, Oils and Waxes of Animal or Vegetable Origin (43.5%) and a decrease was observed in the Foods and Livestock sector (27.8%).
Source: Class (11.12.2012)

Bulgaria's Population Shrinks to 7 M People Bulgaria's population has shrunk to less than seven million people, the center for demographic policy said. Experts say that if the death rate in the country has not changed for the past six months, as of yesterday, the number of Bulgaria's population officially starts with the figure six. They also said that Bulgaria is the only country in the world whose population has shrunk so much for the past five years. Bulgaria has the ninth highest death rate in the world and one of the lowest birth rates. Bulgaria is also plighted by poverty, corruption, criminality and cardiac diseases.
Source: Standart (12.12.2012)

Bulgaria ranks third in terms of decline in industrial output in the EU for October With a decrease of 4.2%, Bulgaria ranks third in the EU in terms of decline in industrial output on an annual basis for October, showed data of the European statistical office Eurostat. Only Ireland and Italy ranked behind Bulgaria in terms of this major economic indicator, with a decline of 16.2% and 6.2%, respectively. In front of Bulgaria are countries like the Netherlands and Portugal, each with a decline of 3.9%, and Germany (-3.8%). The largest industrial growth on an annual basis was reported by Lithuania (10.3%), Slovakia (8.1%) and Malta (4.5%). In October 2012, the decline in industrial output in the Eurozone was 3.6%, compared to the same month last year, and 3.1% on average across the EU, i.e. the decrease in Bulgaria is considerably higher than the EU average. The biggest decline in October, compared to September, was reported by Estonia (-5.3%), the Netherlands (-4.7%), Slovakia (-3.9%) and Germany (-2.4%). The largest increase was registered by the industries of Portugal (+4.8%), Ireland (+2.7%) and Poland (+1.9%). Meanwhile, Bulgaria reported a 0.4% decrease. The new contraction of industrial production in October was mainly attributed to the strong drop in the production of consumer durable goods (-3.8%) and investment goods (-3%). Production of energy decreased by 1.5% and the output of goods for intermediate consumption - by 1.2%.
Source: Class (13.12.2012)

EU emigrants send more than ˆ39 bn to their homelands in 2011When it comes to the EU, the amount of money sent home by emigrants in 2011 reached ˆ39.1 bn, according to Eurostat data. According to European statistics, a 2% increase in money sent from abroad back home is reported, compared to the previous year. An interesting fact is that a large share of the cash flow goes to countries outside the EU - around 75%. Thus, in 2011, the absolute value of this share amounted to ˆ28.5 bn (a 3% growth), while the share of money sent by emigrants from one EU Member State to another amounted to ˆ10.7 bn. The largest share of money sent back home came from France - up to ˆ9.7 bn, or a quarter of the total volume of all money sent home by emigrants in the EU. From Italy to other countries, emigrants sent ˆ7.4 bn, or 19% of the total volume, from Spain - ˆ7.3 bn, from Germany - ˆ3 bn, and from the Netherlands - ˆ1.5 bn. France reported a decrease of funds flowing out of the country compared to 2010, while Italy and Spain reported a rise. Especially in Italy, the rise was significant - nearly ˆ1 bn. Bulgaria ranks second to last in terms of cash outflow sent by immigrants permanently working in our country. The total volume of funds sent amounted to ˆ7 mln, as ˆ2 mln were sent to another European country and ˆ5 mln - to a country outside the EU. In our country, there is no increase in the funds flowing out of Bulgaria, but a redistribution - more money was sent to other EU Member States, compared to 2010. By comparison, Greece reported a ˆ922 mln cash outflow and Romania - ˆ168 mln. Both countries noted a decrease of money sent back home - by ˆ159 mln in Greece, and by ˆ38 mln in Romania.
Source: Class (13.12.2012)

Consumer price index falls by 0.1% in November November saw a slight decrease in consumer prices of 0.1%, compared to October, according to the latest data from the National Statistics Institute (NSI). The inflation rate for the year to date slowed down to 3.8% from 4% the previous month. Inflation was 3.9% year-on-year in November. The annual inflation rate for the 12 months to November 2012 was 2.8% compared to the December 2010 – November 2011 period. Food prices fell in November as follows: cabbage (34.6%), citrus and tropical fruit (10.5%), tomatoes (6.4%), pepper (2.8%), carrots (2.4%). Prices were higher for cucumbers (14.7%), potatoes (4.6%), garlic (2.6%), onion (1.9%), mineral water and soft drinks (1.5%), yellow cheese (0.9%), poultry (0.9%) etc. Among non-edible goods and services, November saw price reductions for petrol À95 Í (4.1%), petrol À98 Í (3.5%), diesel (2.4%) and oil fuel for household needs (2%). Prices were up for liquefied petroleum gas (3%), clothing (1.4%), taxi fares (1.4%), air-conditioners (1.3%), shoes (1.1%), water-supply (1%) etc. Prices of drugs and other pharmaceutical products also fell in November (0.4%), while the cost of medical and dental care went slightly up by 0.1% and 0.9%, respectively.
Source: Class (13.12.2012)

Nearly 90% of Bulgarian firms have access to the Internet The share of Bulgarian firms with Internet access has reached 87.4%, showed data from the National Statistics Institute (NSI) monitoring the progress of the so-called information society among firms in 2012. The figure is up 0.5% from the previous year. The type and speed of Internet connections has marked a significant improvement – 76.2% of businesses in the country use fixed broadband Internet, which is 7.7% more than in 2011. Almost half of the enterprises (48.8%) support their own website, NSI found. Information technologies are used mainly in big companies (with more than 250 employees), 98.3% of which have Internet access, with the share dropping to 85.7% among small firms (with 10-49 employees). In 2012, one in four workers (26.7%) used a computer at least once a week to perform their work responsibilities, and 22.5% of the workforce has been provided with Internet access, which is an increase of 0.9% and 1.1%, respectively, compared to 2011. The share of consumers shopping online is growing twice as fast as the number of people who choose to contact the government administration via the Internet, showed the latest NSI survey of Internet coverage in 2012. The number of people seeking administrative services on the web has risen 1.2% in a year. In 25% of the cases it’s about citizens looking for information on the institutions’ online pages, 13.2% downloaded document forms and 11.3% filled the forms online. The growth rate among the number of online shoppers is 2.5% higher. In the last 12 months one in ten people between the age of 16 and 74 made a purchase on the Internet. The most sought after items are clothes and shoes (63.6%), followed by orders connected to trips and hotel reservations (31.3%) and purchases of books, magazines, newspapers and digital studying materials (25.9%). More than half of the households in Bulgaria (50.9%) have Internet access, with almost all of them (50.8%) using broadband, statistics showed. The number of homes with Internet access rose 5.9% in a year, while broadband users increased by 11%. Compared to 2008, the number of families with Internet access doubled, while the use of broadband connections jumped 30%. The Southwest region, including the capital Sofia, has the biggest share of households with Internet (nearly 60%). The Northwest region has the lowest Internet coverage (38.2%). The number of regular Internet users rose 3.9% in a year to reach more than half of the population between the age of 16 and 74.
Source: Class (14.12.2012)

Bulgaria's gross domestic product (GDP) per capita in 2011 was the lowest among the EU member states, or 55% below the EU-27 average, Eurostat said on Thursday. Actual individual consumption (AIC) per capita in Bulgaria was 55% below average in 2011, the bloc's statistics office said in a statement. Bulgaria and Romania joined the bloc in 2007 while Slovenia became a EU member in 2004.
Source: Dnevnik (14.12.2012)

Bulgaria’s Population Melts down to 5M by 2060 By 2060 the population of Bulgaria will dwindle by two million, according to a grim prognosis of the National Statistical Institute (NSI.) Then Bulgaria will count about 5.3 million people. The last census carried out in February 2011 showed that the Bulgarians number 7.3 million. There is a more optimistic variant of the demographic trends in Bulgaria. According to it, the population of Bulgaria in 2060 will be 5.7 million, although the pessimists believe that it will melt down to about 5.1 million. In the opinion of the NSI experts, in the next half of the 21 century the ratio between the working and non-working citizens in Bulgaria will be 100:84. At the same time the analysis by Eurostat, ranking the size and density of the population, shows that by the beginning of 2010 the global population amounted to 7 billion and it keeps growing. Currently the population of the world numbers about 7.6 billion.
Source: investor.bg (14.12.2012)

Every Fourth Bulgarian Lives below Poverty Line The poverty threshold in Bulgaria is 283,75 BGN/person per month, the National Statistical Institute (NSI) reported. In 2010, 1.673 million Bulgarians, or 22,3% of the population, lived below this threshold. The poverty threshold means an income amounting to 60% of the average per capita earnings in Bulgaria. It turns out that due to the crisis and the shrinking incomes the poverty threshold in 2010 is by 3.8% lower. Despite that the share of the poor Bulgarians increases (in 2009 some 1.56 million Bulgarians or 20,7% of the country's population live under the poverty threshold). At the same time in 2010 the gap between the incomes of the poorest Bulgarians and the richest 20% has widened. Some 52% of the Bulgarians who live under the poverty line are unemployed. Meanwhile the number of the Bulgarians who are employed but also hardly keep both ends meet has also grown by 8.2%. The group of the poorest Bulgarians include mostly pensioners, students and housewives.
Source: Standart (15.12.2012)

Eurostat: Wages in Bulgaria increased by 6.6% In Bulgaria, the labor costs of employers to man-hour in the third quarter of this year increased by 5.9% year-on-year, according to Eurostat. There are two main components of labor costs - wages and expenses related to the payment of wages. As for the change in wages for a man hour, in Bulgaria they increased by 6.6% in the third quarter of this year, and components of other labor costs increased by 2.3%. There is an increase from the previous quarter. In the second quarter of 2012 growth was within 4.8 percent of which 5.8 increase in wages paid per hour and 0.1% of other costs, Eurostat data show. According to preliminary data of NSI, the increase of the labor costs of employers is 5.9%. Meanwhile, labor costs per man hour in the eurozone have risen by 2% in the year to the third quarter of 2012. This is an increase compared to the increase of 1.9% in the second quarter of this year.
Source: econ.bg (19.12.2012)

Bulgaria tops the EU ranking of construction growth for October Bulgaria registered the highest growth (5.7%) in building industry in the EU for October on an annual basis and was second to the UK in terms of the volume of construction, showed Eurostat data. The volume of construction in the Eurozone as a whole dropped by 1.6% in October, compared to the previous month, according to Eurostat data. The decline from October 2011 reached 4.1%. According to the revised data of Eurostat, the volume of construction in the Eurozone decreased by 1.3% in September, compared to the previous month. Earlier, it was reported that the drop was 1.4%. On an annual basis, the September decline grew to 3.8%, not 2.6%. In the 27 Member States of the European Union, the construction sector grew by 1.6% in October, compared to the previous month and dropped by 4.4% on an annual basis. Among the Member States for which data is available for October, construction activity recorded a monthly decline in nine countries and an increase - in six countries. The highest drop was registered in Slovenia (-21.1%), Germany (-5.3%) and Sweden (-4.7%). The highest growth was recorded in the UK (+11.7%), Bulgaria (+2.2%) and Italy (+1.9%). Compared to October 2011, the construction sector shrunk in 12 Member States and grew in only three EU countries. The most dramatic decline was registered in Portugal (-19.1%), Slovenia (-15.5%), Slovakia (-12.8%) and Italy (-12.1%). The highest growth was recorded in Bulgaria (+5.7%), Spain (+3.4%) and Hungary (+1.3%).
Source: Class (20.12.2012)

Bulgarian Labor Costs Up by 5.9% Q3 2012 Y/Y Bulgaria's total hourly labor cost rose by 5.9% in the third quarter of 2012 as compared with the third quarter of 2011, according to the National Statistical Institute. The total hourly labor cost grew by 2.3% in industry and by 11.2% in services. In construction the total hourly labour costs decreased by 0.9%. The highest annual growths in total labor costs were recorded in 'Wholesale and retail trade; repair of motor vehicles and motorcycles' - 17.7% and 'Professional, scientific and technical activities', while the lowest annual growths were registered in 'Public administration and defence; compulsory social security' and 'Water supply, sewerage, waste management and remediation activities' respectively 0.1% and 0.9%. The highest decrease in total labor costs was observed in 'Electricity, gas, steam and air conditioning supply' by 4.7% and 'Construction' by 0.9%. Wages and salaries costs per hour worked grew by 6.6% in comparison with a year earlier, while the other (non-wage) costs rose by 2.3%, the Institute says.
Source: Capital (21.12.2012)