Total Labor Costs per Hour in Bulgaria Up 2.8% Y/Y in Q3, 2013 According to preliminary data of Bulgaria's National Statistical Institute (NSI) for the third quarter of 2013, total labor costs per hour grew by 2.8% from the third quarter of 2012. Total hourly labor costs grew by 3.6% in industry, by 0.9% in the services sector and by 4.3% in construction. According to the breakdown by economic activities, the highest year-on-year increases in TOTAL labor costs in Q3, 2013 were registered in the sectors of education (6.8%), public administration and defense (5.9%) and human health and social work activities (5.2%). The biggest decreases in total labor costs were registered in the spheres of arts entertainment and recreation (7.8%), and other activities (3.4%). In Q3, 2013, the share of salary costs per hour of the total labor costs grew by 2.6% on the year, while other (non-wage) costs went up by 3.7%. Depending on the economic activities, the salary costs component changed differently in the course of one year, starting from -8.8% in the sphere of arts, entertainment and recreation to 7.1% in the sphere of education.
Source: 24 chasa (06.01.2014)

Bulgaria's Producer Price Index Down 4% Nov 2013 Y/Y The Producer Price Index on Domestic Market in Bulgaria in November 2013 remained at the level of the previous month, according to the country's National Statistical Institute, NSI. The domestic prices fell in the mining and quarrying industry by 1.8% and in the electricity, gas, steam and air conditioning supply by 0.2%, while in the manufacturing the prices increased by 0.2%. In the manufacturing, compared to the previous month, prices went up in the manufacture of tobacco products by 3.0% and in the manufacture of paper and paper products by 0.3%, while a price decrease was observed in the manufacture of other transport equipment by 2.1% and in the manufacture of chemicals and chemical products by 0.5%. The Producer Price Index on Domestic Market in November 2013 decreased by 4.0%, compared to the same month of 2012. The domestic prices fell in the mining and quarrying industry by 12.7%, in the manufacturing by 3.0% and in the electricity, gas, steam and air conditioning supply by 5.1%. In the manufacturing, compared to November 2012, a price decrease was registered in the manufacture of basic metals by 5.2%, in the manufacture of food products and in the manufacture of chemicals and chemical products by 3.7%. An increase in prices was observed in the manufacture of leather and related products by 8.0%, in the repair and installation of machinery and equipment by 4.7%, and in the manufacture of tobacco products by 3.4%
Source: investor.bg (06.01.2014)

Bulgaria's Business Climate Down Dec 2013 M/M In December 2013, the total business climate indicator marked a decrease by 3.4 percentage points compared to its level from the previous month. The data was released by the country's National Statistical Institute, NSI. NSI conjuncture inquiries registered a worsening business climate in industry, construction and retail trade. The composite indicator "business climate in industry" decreased by 3.2 percentage points in comparison with November, which is attributed to the worsening industrial entrepreneurs' assessments about the present business situation of the enterprises. At the same time, their expectations regarding the business situation and production activity over the next months were also more reserved. The main obstacles for the business development in the branch remain the uncertain economic environment and insufficient domestic demand. Concerning sale prices, the expectations are for preservation of their level over the next 3 months. In December, the composite indicator "business climate in construction" dropped by 9.1 percentage points due to the increased pessimism in the managers' assessments and expectations about the business situation of the enterprises. According to them, the present construction activity is decreased compared to the previous month and their forecasts over the next 3 months are also more unfavorable. At the same time the inquiry registers an increase in the number of clients with delay in payments. The uncertain economic environment, competition and financial problems continue to be the main factors limiting the activity in the branch as in December a decrease of their negative impact is observed. Regarding sale prices in the branch, the most of the managers forecast they are to remain unchanged over the next 3 months. The composite indicator "business climate in retail trade" decreased by 2.9 percentage points. This is attributed mainly to the worsening retailers' expectations about the business situation of the enterprises over the next 6 months, which is accompanied by more pessimistic prognoses about both the volume of sales and the orders placed with suppliers over the next 3 months. The main factors limiting the activity in the branch continue to be the uncertain economic environment, insufficient demand and competition in the branch as in the last month a decrease of the negative impact of the first two factors is registered. Regarding sale prices, the prevailing retailers' expectations are for preservation of their level over the next 3 months. In December, the composite indicator "business climate in service sector" increased by 1.4 percentage points compared to its November level, mainly due to the more favorable managers' expectations about the business situation of the enterprises over the next 6 months. Regarding present and expected demand for services their opinions are also improved. The uncertain economic environment, competition, and insufficient demand remain the main obstacles for the business development in the branch. Regarding sale prices in the service sector, the inquiry registers certain expectations for an increase over the next 3 months.
Source: investor.bg (06.01.2014)

Bulgaria sees sharpest y/y drop in Nov industrial producer prices in EU Bulgaria’s November industrial producer prices on the domestic market dropped by 4.0% on the year, marking the highest decrease among European Union member states, the bloc's statistics office said on Tuesday. The average industrial producer prices in the European Union states edged down 0.1% on the month and declined by 1.0% on the year in November, Eurostat said in a statement. Bulgaria and Romania joined the EU in 2007. Slovenia joined the bloc in 2004 and Croatia became EU's 28th member in July 2013.
Source: Dnevnik (08.01.2014)

Eurostat: Bulgaria reports 12.9% jobless rate in November Bulgaria’s unemployment rate in November 2013 ran at 12.9%, staying without change compared with October, shows the data of the European statistical office Eurostat. The youth unemployment, on the other hand, reported an increase to 28.5% against 28.3% in the previous month. The euro area (EA17) seasonally-adjusted unemployment rate was 12.1% in November 2013, stable since April. The EU28 unemployment rate was 10.9%, stable since May. In both zones, the rates increased compared with November 2012, when they were 11.8% and 10.8% respectively. These figures are published by Eurostat, the statistical office of the European Union. Eurostat estimates that 26.553 million men and women in the EU28, of whom 19.241 million were in the euro area, were unemployed in November 2013. Compared with October 2013, the number of persons unemployed increased by 19 000 in the EU28 and by 4 000 in the euro area. Compared with November 2012, unemployment rose by 278 000 in the EU28 and by 452 000 in the euro area. Among the Member States, the lowest unemployment rates were recorded in Austria (4.8%), Germany (5.2%) and Luxembourg (6.1%), and the highest in Greece (27.4% in September 2013) and Spain (26.7%). Compared with a year ago, the unemployment rate increased in fourteen Member States and fell in fourteen. The highest increases were registered in Cyprus (13.3% to 17.3%), Italy (11.3% to 12.7%), Greece (26.0% to 27.4% between September 2012 and September 2013) and the Netherlands (5.6% to 6.9%). The largest decreases were observed in Ireland (14.3% to 12.3%), Latvia (14.0% to 12.0% between the third quarters of 2012 and 2013), Lithuania (13.0% to 11.3%), Portugal (17.0% to 15.5%) and Hungary (11.0% to 9.5% between October 2012 and October 2013).
Source: Agency Focus (09.01.2014)

Bulgaria’s export to EU up 9.5% in January-November 2013 In the period January - October 2013 Bulgarian exports to the EU increased by 9.5% compared to the corresponding period of the previous year and amounted to BGN 21.9 billion while the imports from EU grew by 2.7% and added up to BGN 25.0 billion, the National Statistical Institute announced. In October 2013 the exports to the EU increased by 13.8% compared to the corresponding month of the previous year and amounted to BGN 2.4 billion while the imports increased by 4.9% and added up to BGN 2.8 billion.
Source: Agency Focus (10.01.2014)

Bulgaria’s export to third countries up 3.6% in January-November 2013 In January - November 2013 the Bulgarian exports to third countries increased by 3.6% compared to the corresponding period of the previous year and amounted to BGN 15.9 billion while the imports decreased by 0.6% and added up to BGN 18.8 billion, the National Statistical Institute announced. In the period January - November 2013 the total value of all exported goods (both for third countries and EU) amounted to BGN 40.3 billion and compared to the corresponding period of 2012 the exports increased by 7.1% while the total value of all imported goods added up to BGN 46.5 billion and increased by 1.1%.
Source: Agency Focus (10.01.2014)

Bulgarian index of inductrial production goes up by 0.2% in November According to preliminary data, the index of industrial production in November 2013, based on seasonally adjusted data, has increased by 0.2% in comparison with October 2013, the National Statistical Institute reported. In November 2013 the calendar-adjusted index of industrial production marked a 2.8% increase in comparison with November 2012.
Source: Agency Focus (13.01.2014)

Bulgaria's Industrial Production Index Up 0.2% M/M in Nov 2013 Bulgaria's seasonally adjusted industrial production index increased by 0.2% in November 2013 as compared to October 2013, according to preliminary data of the National Statistical Institute (NSI). In November 2013, the work day adjusted industrial production index rose by 2.8% in comparison with the same month of 2012. In November 2013, as compared to October 2013, the seasonally adjusted industrial production index increased by 0.4% in the manufacturing, while decreases were registered in the mining and quarrying industry - by 1.8% and in the electricity, gas, steam and air conditioning supply - by 0.8%. The most significant increases of production in manufacturing were registered in the manufacturing of wood and of products of wood and cork, except furniture; manufacturing of articles of straw and plaiting materials - by 10.8%, in the manufacturing of clothing apparel - by 7.6%, in the manufacturing of motor vehicles, trailers and semi-trailers by - 5.2%, in the manufacturing of chemicals and chemical products - by 4.1%, in the manufacturing of electrical equipment - by 4.0%. There was decrease in the manufacturing of fabricated metal products, except machinery and equipment - 13.3%, in the repair and installation of machinery and equipment by - 12.2%, in the manufacturing of computer, electronic and optical products - by 6.3%, in the manufacturing of other transport equipment - by 5.7%. On annual basis, in November 2013 the industrial production index, calculated from work day adjusted data, increased in the mining and quarrying industry - by 28.4% and in manufacturing - by 4.7%, while in the electricity, gas, steam and air conditioning supply, a decrease of 11.4% was registered. In manufacturing, the more significant increases, compared to the same month of the previous year, were seen in the manufacturing of motor vehicles, trailers and semi-trailers - by 17.9%, in the manufacturing of paper and paper products - by 16.8%, in the manufacturing of other transport equipment - by 14.6%, in the manufacturing of machinery and equipment - by 13.3%, in the manufacturing of basic pharmaceutical products and pharmaceutical preparations - by 12.9%, in the manufacturing of fabricated metal products, except machinery and equipment - by 12.2%. Decreases were registered in the repair and installation of machinery and equipment - by 29.8%, in the printing and reproduction of recorded media - by 10.5%, in the manufacturing of leather and related products - by 3.4%.
Source: money.bg (13.01.2014)

Bulgaria’s average unemployment rate in 2013 is 11.3% In 2013 Bulgaria’s average unemployment rate was 11.3%, which is 1.1 percentage points lower than the envisaged 12.4%, the press centre of the National Employment Agency announced. The registered unemployment rate in January was 11.9% and 12% in February. In the next months it gradually decreased to 10.7% in August. An increase was reported in the other four months yet the level from the beginning of the year was not reached. The average number of registered unemployed people on a monthly basis was 371,380 people. In 2012, the number of unemployed people increased by almost 32,000 people, while the reported increase in 2013 was by 6,843 people.
Source: Agency Focus (14.01.2014)

Bulgaria reports 1.6% annual inflation in December 2013 Òhe consumer price index in December 2013 compared to November 2013 was 100.3%, i.e. the monthly inflation was 0.3%. The annual inflation in December 2013 compared to December 2012 was -1.6%, shows the data of the Bulgarian National Statistical Institute. The annual average inflation, measured by CPI, in the last 12 months (January - December 2013) compared to the previous 12 months (January - December 2012) was 0.9%. In December 2013 compared to the previous month the prices of goods and services in the main consumer groups have changed as follows: • Food and non-alcoholic beverages - the prices remained at the level of the previous month; • Alcoholic beverages and tobacco - an increase of 0.3%; • Clothing and footwear - a decrease of 0.3%; • Housing (rentals, maintenance and repair), water, electricity, gas and other fuels - an increase of 0.1%; • Furnishings, household equipment and routine maintenance of the house - the prices remained at the level of the previous month; • Health - an increase of 0.1%; • Transport - an increase of 1.1%; • Communications - a decrease of 0.2%; • Recreation and culture - an increase of 3.4%; • Education - the prices remained at the level of the previous month; • Restaurants and hotels - an increase of 0.4%; • Miscellaneous goods and service - an increase of 0.1%.
Source: Agency Focus (15.01.2014)

Bulgaria's 2013 Annual Average Inflation at 0.9%, Lowest in 18 Years The annual average inflation in 2013, measured by consumer price index (CPI), stood at 0.9%, the lowest point since 1995, according to Bulgaria's National Statistical Institute (NSI). The consumer price index in December 2013 compared to November 2013 was 100.3%, i.e. the monthly inflation was 0.3%. The annual inflation in December 2013 compared to December 2012 was -1.6%. The annual average inflation in the period January – December 2013, compared to the period January – December 2012, amounted to 0.9%. In December 2013, prices of food and non-alcoholic beverages remained unchanged from the previous month, prices of alcoholic beverages and tobacco went up by 0.3%, prices of clothing and footwear fell by 0.3%, prices of housing (rentals, maintenance and repair), water, electricity, gas and other fuels registered an increase by 0.1%, prices of furnishings, household equipment and routine maintenance of the house remained unchanged from November 2013, prices in the sphere of health went up by 0.1%, prices in the sphere of transport added 1.1%, prices in the sphere of communications decreased by 0.2%, prices in the sphere of recreation and culture increased by 3.4%, prices in the sphere of education remained unchanged from the previous month, prices at restaurants and hotels added 0.4%, and prices of miscellaneous goods and services increased by 0.1%. The harmonized index of consumer prices in December 2013 compared to November 2013 was 100.4%, i.e. the monthly inflation was 0.4%. The annual inflation in December 2013 compared to December 2012 was -0.9%. The annual average inflation, measured by HICP, in the last 12 months (January - December 2013) compared to the previous 12 months (January - December 2012) was 0.4%. In terms of HICP, prices of food and non-alcoholic beverages remained unchanged from November 2013, prices of alcoholic beverages and tobacco increased by 0.2%, prices of clothing and footwear fell by 0.3%, prices of housing (rentals, maintenance and repair), water, electricity, gas and other fuels remained unchanged on a monthly basis, prices of furnishings, household equipment and routine maintenance of the house decreased by 0.3%, prices in the sphere of health remained unchanged from November 2013, prices in the sphere of transport went up by 1%, prices in the sphere of communications fell by 0.3%, prices in the sphere of recreation and culture added 1.5%, prices in the sphere of education remained unchanged, prices at restaurants and hotels increased by 2%, prices of miscellaneous goods and services went up by 0.1%. The price index of a small basket in December 2013 compared to November 2013 was 100.3% and the overall decrease since the beginning of the year (December 2013 compared to December 2012) was 97.4%. In December 2013, compared to November 2013, 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 0.4%; • Non-food products - an increase of 0.2%; • Services - an increase of 0.1%. - See more at: http://www.novinite.com/articles/157263/Bulgaria%27s+2013+Annual+Average+Inflation+at+0.9%2C+Lowest+in+18+Years#sthash.qrarYBmg.dpuf
Source: investor.bg (15.01.2014)

Bulgaria Among 4 EU Countries with Annual Deflation in Dec Annual inflation in December in the euro area slipped to 0.8% from 0.9% in November, and down from 2.2% a year ago, according to official data from Eurostat released Thursday. Annual inflation in the euro zone held steady at 1% compared to November, but was down from 2.3% in the same period last year. Monthly inflation was 0.3% in both the euro area and the euro zone in December. In December, the lowest annual rates were observed in Greece (-1.8%), Cyprus (-1.3%), Bulgaria (-0.9%) and Latvia (-0.4%), and the highest rates were seen in Estonia, Austria and the United Kingdom (all 2.0%) and Finland (1.9%). Compared with November 2013, annual inflation fell in nine member states, remained stable in four and rose in 14 member states. The lowest 12-month average rates up to December 2013 were registered in Greece (-0.9%), Latvia (0.0%), Bulgaria, Cyprus, Portugal and Sweden (all 0.4%), and the highest in Estonia and Romania (both 3.2%), the Netherlands and the United Kingdom (both 2.6%). Consumer price inflation, or CPI, measures the change in the price of goods and services from the consumer’s perspective, and it’s a crucial measure of demand trends in an economy.
Source: Dnevnik (17.01.2014)

Prices of homes in the country has dropped by 1% more After the slight growth in spring months of last year in the third quarter of 2013 prices of homes on the Bulgarian market again went down. As compared to the previous three months of the year the drop for the period July- September is 1%, while for the same period of the year prices in the EU have increased on the average by 0.7%. As compared to a year earlier in the third quarter of 2013 homes in the country have fallen in price by 3%. These are the three months with highest drop in prices for the whole year, too. According to Eurostat the biggest drop as compared to the second quarter of the year was observed in property prices in Slovenia-by 4%. On an annual basis the highest decline was registered in the newest member of the union Croatia- by 16.9%. Estonia was the country with the greatest increase in property prices for the period. The annual drop for the whole EU is 0.5%. As opposed to the price index, another important indicator, number of deals with real estates has increased last year in Bulgaria, though at a moderate pace. In the first half of the year the growth, as compared to the same period of 2012 is by more than 11%, while for the whole year the increase by the humble 3%.
Source: Capital (21.01.2014)

1.2% Dwelling's Price Drop in Bulgaria Q4 2014 Y/Y The market price index of dwellings in Bulgaria for the fourth quarter of 2013, compared to the third quarter of 2013 was 99.9%, i.e. the average decrease of the market prices of the dwellings was 0.1%. The data was released Thursday by the National Statistics Institute, NSI. The market price index of dwellings for the fourth quarter of 2013 in comparison with the corresponding quarter of the previous year was 98.8%, i.e. the average decrease of the market prices of the dwellings was 1.2%. In the fourth quarter of 2013, compared to the previous one, a price decrease has been recorded in 20 regional centers and in Sofia Region. The decrease was more considerable in Vidin - by 3.4%, Kyustendil by - 2.4%, and Blagoevgrad - by 1.8%. In 7 regional centers a price increase has been recorded. In the fourth quarter of 2013 the average market price of the dwellings for the whole country was BGN 864.52/sq. m. The highest average prices were registered in the capital Sofia - BGN 1 456.83/sq. m, followed by Varna – BGN 1 374.50/sq. m and Burgas – BGN 1 112.17/sq. m. The market price index of the dwellings for the 2013, compared to 2012, was 98.2 %, i.e. the average decrease of the market price of the dwellings was 1.8%. In 2013, compared to 2012, a price decrease has been recorded in 24 regional centers and in Sofia Region. The price drop was more considerable in Sliven - by 7.0%, Vratsa - by 6.8 % and in Pazardzhik - by 6.1%. In Veliko Tarnovo the prices remained at the level of the previous year. Price increase has been recorded in Targovishte - by 0.2% and Ruse - by 1.0%. In 2013, the average market price of the dwellings for the whole country was BGN 865.638/sq. m. Average prices were the highest in the capital Sofia – BGN 1 439.79/sq. m, followed by Varna – BGN1 390.33/sq. m. The market price index of the dwellings measures the total relative price change of the prices of existing dwellings – flats (newly built flats, houses and luxury dwellings are excluded). The object of the statistical survey is the prices of flats really sold by households in regional centers.
Source: Capital (23.01.2014)

23% of Bulgarian households are below the poverty line 23% of the Bulgarian households or 1.6 million Bulgarians now live beyond the poverty line, the Confederation of Independent Trade Unions of Bulgaria (KNSB) reports. Late last year, the poverty line was BGN 214, the union specified. As about a four person family, the minimum amount per person was BGN 565. 20% of Bulgaria's households , or 1.4 million people have incomes that are higher than the necessary minimum . In 2013, Bulgarian wages have grown by 3.7% , but at the same time the number of employed fell by 0.8% . With 5%, the growth of wages was the highest in the budget sector, while in the private sphere it amounted only to 3%.
Source: investor.bg (24.01.2014)

Trips of Bulgaria citizens abroad down 2.2% in December 2013 In December 2013, the number of the trips of Bulgarian residents abroad was 238,200 or by 2.2% under the registered in December 2012, shows the latest data of the Bulgarian National Statistical Institute (NSI). The trips with other purposes (as guest, education and visit the cultural and sport events) composed the greatest share of the total number of trips of Bulgarian residents abroad - 51.9%, followed by the trips with holiday and recreation purposes - 26.0% and with professional purpose - 22.1%. In December 2013, the number of arrivals of visitors from abroad to Bulgaria was 405,800 which was by 2.2% above the level of December 2012. An increase was registered in the visits with holiday and recreation purposes - by 5.8%, while these with professional purpose decreased by 0.5%. Only the visits with other purposes preserved the level of the corresponding month of the previous year.
Source: Agency Focus (27.01.2014)

Market of real estates: Homes in Ruse, Vratsa and Pernik decline in price the most Apartments in Ruse have gone down in price the most in the five years of the crisis. This is evident from calculations based on NSI’s data on average market prices of homes in the period 2009-2013. For five years value if a square meter in the Danube town has decreased by BGN 1652,42 to BGN 882,17, which is a devaluation to the amount of 46,61%. Since the peak at the end of 2008 till now, the average price of homes in Bulgaria has dropped by entire 36, 5 %. Breakdown by regions though shows really huge differences in regional centers. Decline is sharp in prices per square meter in Vratsa, too. Their value has decreased by 46, 5% for the last five years. The third place in impairment is held by Pernik- 45, 9%. Among towns where homes have fallen the least Sofia region takes the first place. The drop in prices there is negligible-by 4, 1 %. The second place is held by Silistra where the decline is just by 15, 5%.
Source: Trud (27.01.2014)

Recovery in luxurious properties Trade with luxurious properties in Bulgaria’s sea resorts registered a 20% increase in 2013, as well as slight growth in average prices within 3 to 4%. This is not valid for prices of apartments in our mountain resorts, where there is no change. In the last year or two pieces of offers and real value of properties are coming closer. Mostly newly constructed homes remain overestimated. Market of luxurious properties recovers faster and even a slight increase in average prices has been reported on it in 2013. The change is within several percentage points. The average price of luxurious houses and apartments in the capital city has reached EUR 1700 per square meter, while rents of such sites are about EUR 7 per square meter. At the same time profitability of luxurious homes have grown from 6, 3% in 2012 to 6, 5% in 2013, which is significant reason for investment.
Source: Trud (27.01.2014)

Bulgaria imports 30% more food Our country has imported 30% more food and drink in 2013 compared with the previous 12 months , the annual report of its customs agency shows, Standart daily reveals. This is the group of goods in which the largest increase in imports was reported. Total imports increased by 9.2% , with growth in different products varying on average between 1% and 18%. Revenues from VAT on imports in 2013 were BGN 3,816 billion, which is BGN 77.3 million, or 2.1% more than in 2012. The increase in revenue is due to the large volume of import. Prices of goods flowing into the country have decreased on average by 5.8 % year-on-year . Revenues from excise duty on petrol fell by 5.1% in 2013 to BGN 439.2 million. According to the report the reason for this is that more and more people prefer to drive diesel cars equipped with gas appliances or cut back the use of cars. The total revenues of the National Customs Agency in 2013 exceeded BGN 8,024 billion, which is 96.1% of the pre- planned amount, according to the report of the institution.
Source: Standart (27.01.2014)

Bulgaria's Business Climate Up Jan 2014 M/M The total business climate indicator has increased by 4.6 percentage points in January, according to official data by Bulgaria's National Statistical Institute. The increase compared to December 2013 is due to the more favorable managers' opinions from all observed sectors - industry, construction, retail trade and service sector, according to NSI's "Business Conjuncture, January 2014" report. The composite indicator "business climate in industry" has increased by 5.4 percentage points compared to December 2013. At the same time managers' prognoses concerning the production activity over the next 3 months have improved, which is not accompanied by increased expectations about export over the next 3 months. The average capacity utilization in January is by 1.0 percentage point over its October 2013 level and it reaches 70.8 %, as regards the expected demand over the next months a surplus of capacity is foreseen. The uncertain economic environment and insufficient domestic demand remain the main obstacles for the business development in the branch, pointed out by 52.5% and 45.1% of the managers respectively. Concerning the selling prices in industry the expectations are for preservation of their level over the next 3 months. In January the composite indicator "business climate in construction" increases by 6.6 percentage points. In the next half year managers expect increased inflow of new orders in construction which according to them will lead to a certain increase of the activity in the short term. The main factor limiting the activity in the branch remains the uncertain economic environment, followed by the financial problems and competition in the branch. As regards the selling prices in the branch, the prevailing managers' expectations are they to remain unchanged over the next 3 months. The composite indicator "business climate in retail trade" increases by 1.4 percentage points in comparison with the previous month which is due to the more optimistic retailers' expectations about the business situation of the enterprises over the next 6 months. The inquiry also registers more favorable expectations with regard to the orders placed with suppliers over the next 3 months. The uncertain economic environment, insufficient demand and competition in the branch continue to be the main obstacles for the activity development in the branch. In January the composite indicator "business climate in service sector" increases by 3.7 percentage points due to the improved managers' assessments and expectations about the business situation of the enterprises. The most serious difficulties for the activity in the service sector continue to be connected with the uncertain economic environment, competition in the branch and insufficient demand. With regard to the selling prices, managers foresee no change over the next 3 months.
Source: Capital (29.01.2014)

Bulgarian Tourist Sector Sees Increase in Overnight Stays Bulgaria is among the EU countries in which overnight stays in tourist accommodation has increased the most. Bulgaria is in 5th place among the 28 member states with a hike of 6.2% in 2013, Eurostat data shows. The highest relative increases were posted in Greece, Malta, Latvia and the UK. The highest number of nights spent in tourist accommodation establishments in 2013 were recorded in France (405 M nights, plus 1.1% year-on-year), The list is followed by Spain (387 M, +1.0%), Italy (363 M, -4.6%), Germany (355 M, +1.3%) and the UK (320 M, +6.5%). These five member states accounted for 70% of the total number of nights spent in tourist accommodation establishments in the EU. For comparison, the number of nights in Bulgaria was 21.5 M. Of those, 14.3 M were by non-Bulgarian residents and 7.2 M by locals. According to Eurostat, the total number of nights spent in tourist accommodation in the EU was record with 2.6 B.
Source: Dnevnik (29.01.2014)

Electricity production in Bulgaria rises in December 2013: NSI Electricity generation and production of solid fuels in Bulgaria were on the rise in December 2013, it transpires from the latest report of the National Statistical Institute (NSI). Electricity output was up 2.8% m/m and up 13.2% y/y, while production of solid fuels surged by 18.5% m/m and by 9.5% y/y. According to the numbers, natural gas output in the country slipped 11% y/y to 24 million cubic meters, but saw a monthly increase of 4%. Diesel production was down 33% to 132,000 tons, while propane-butane output contracted by 30% to 34,000 tons. NSI reports on a 33% squeeze in unleaded petrol deliveries to 28,000 tons a year. Diesel shipments saw a 7% decline to 142,000 tons in December 2013.
Source: Duma (31.01.2014)

Bulgaria's Producer Price Index Down 2.9% Dec 2013 Y/Y The Producer Price Index on Domestic Market in Bulgaria in December 2013 remained at the level of the previous month. Domestic prices fell in the mining and quarrying industry by 1.4%, while in the manufacturing and in the electricity, gas, steam and air conditioning supply the prices did not change. The data was released Thursday by the National Statistics Institute, NSI. In manufacturing, compared to the previous month the prices went up in the manufacture of basic pharmaceutical products and pharmaceutical preparations - by 0.8% and in the manufacture of tobacco products - by 0.7%, while a price decrease was reported in the repair and installation of machinery and equipment - by 0.5% and in the manufacture of fabricated metal products, except machinery and equipment - by 0.4%. The Producer Price Index on Domestic Market in December 2013 decreased by 2.8% compared to the same month of 2012. Domestic prices fell in the mining and quarrying industry - by 12.1%, in the manufacturing - by 0.8% and in the electricity, gas, steam and air conditioning supply - by 5.2%. In manufacturing, compared to December 2012, a price decrease was registered in the manufacture of basic metals - by 6.0%, in the manufacture of chemicals and chemical products - by 5.6% and in the manufacture of food products - by 4.2%. Prices increases were noted in the manufacture of leather and related products - by 8.0%, in the manufacture of tobacco products - by 4.2%, in the manufacture of clothing apparel and in the manufacture of basic pharmaceutical products and pharmaceutical preparations - by 2.5%. The Total Producer Price Index in Industry in December 2013 decreased by 0.2% compared to the previous month. Lower prices were registered in the mining and quarrying industry - by 3.2% and in manufacturing - by 0.1%, while prices in electricity, gas, steam and air conditioning supply remained at the level of the previous month. In manufacturing, more significant prices decreases were seen in the manufacture of basic metals – by 1.6%, in the manufacture of leather and related products - by 1.2%, in the manufacture of clothing apparel and in the repair and installation of machinery and equipment by 0.5%. Total Producer Price Index in December 2013 decreased by 2.9% comparing to the same month of 2012. In manufacturing, prices declined by 1.3%, compared to December 2012. More significant prices decreases were noted in the manufacture of basic metals - by 10.0%, in the manufacture of food products - by 3.8% and in the manufacture of motor vehicles, trailers and semi-trailers - by 2.6%. Producer prices rose in the manufacture of fabricated metal products, except machinery and equipment - by 2.1%, in the manufacture of clothing apparel - by 2.0% and in the manufacture of tobacco products by - 1.8%. Producer Price Indices measure the average change in the prices of industrial products, which are produced and sold by Bulgarian enterprises. They can be considered as an early measure of the current inflation process in the economy and also they can be used for international comparisons. Information for calculation of Producer Price Indices is received on the bases of monthly surveys on producer prices of industrial products, sold on domestic market and on industrial products sold on nondomestic market. Producer price surveys are based on constant sample of groups of products, and that sample is representative for total industrial production The Total Producer Price Index is calculated from Producer Price Index on Domestic Market and Producer Price Index on Nondomestic Market weighted with the turnover structure on domestic and on non-domestic market to the total value of turnover in the base year 2005.
Source: investor.bg (31.01.2014)

Unemployment rose to 13.1% in December 2013 Unemployment in Bulgaria was 13.1 percent in December 2013, according to Eurostat. Overall unemployment for the EU was 10.7 percent For the EU, the figure was a slight decrease from the 10.8 per cent of December 2012, according to Eurostat figures released on January 30 2014. In the EU, there were 26.2 million unemployed people in December 2013, about 173 000 less than in December 2012. But in Bulgaria, unemployment worsened, from 12.6 per cent in December 2012 (about 441 000 people) to 13.1 percent in December 2013 (about 423 000 people). Eurostat said that in the 17-member euro zone, seasonally-adjusted unemployment in December 2013 was 12 per cent, stable since October. It had been 11.9 per cent in December 2012 in the euro zone. In the euro area, more than 19 million people were unemployed in December 2013. Among EU countries, unemployment in December 2013 was lowest in Austria (4.9 per cent), Germany (5.1 per cent) and Luxembourg (6.2 per cent), and the highest in Greece (27.8 per cent in October 2013) and Spain (25.8 per cent). Compared with December 2012, unemployment increased in 14 EU member states, fell in 13 and remained stable in Sweden. The highest increases were registered in Cyprus (13.9 per cent to 17.5 per cent), Greece (26.1 per cent to 27.8 per cent between October 2012 and October 2013), the Netherlands (5.8 per cent to 7.0 per cent) and Italy (11.5 per cent to 12.7 per cent). The largest decreases were in Ireland (14 per cent to 12.1 per cent), Latvia (14 per cent to 12.1 per cent between the third quarters of 2012 and 2013), Portugal (17.3 per cent to 15.4 per cent), Hungary (11 per cent to 9.3 per cent between November 2012 and November 2013) and Lithuania (13 per cent to 11.4 per cent), Eurostat said.
Source: Capital (03.02.2014)

Bulgaria Q4 residential building permits fall 12% q/q The number of residential building permits issued in Bulgaria in the last quarter of 2013 fell by 12% on the quarter to 1,032, the statistics office NSI said on Monday. Year-on-year, the number of residential building permits rose 4.0% in the September-December period, NSI said in a press release. The number of buildings permits for administrative buildings fell by 35.7% on the quarter and by 25% on the year to 36 in the fourth quarter of 2013.
Source: Other (03.02.2014)

Bulgarian Construction Sector Emerging from Crisis Bulgaria’s construction sector is adapting to the market situation and is clearly showing signs of overcoming the crisis, according to the National Statistical Institute. The construction of 591 residential buildings of 286,640 sq.m. gross floor area began in Q4 2013, NSI data show. Residential buildings construction decreased by 14% and their total area – by 2.6% compared to Q3 of the same year. The issued construction permits for residential buildings in Q4 decreased by 12%, for apartments - by 2.8% and by 9.1% for gross floor area. However, the decrease was mainly due to seasonal factors. On an annual basis, construction permits for new residential buildings increased by 4%, 15.6%, and 14.2% for apartments and gross floor area, respectively. The number of administrative buildings under construction has increased by 20% and the gross floor area has doubled in Q4 of 2013, compared to the same period of previous year. Nonetheless, construction permits in this segment of the market have dropped by 25%. The largest number of new buildings is reported in the districts of Burgas - 147 residential and 98 other buildings; Plovdiv - 77 residential, 7 administrative and 54 other buildings; Varna - 52 residential and 31 other buildings, Sofia - 33 residential and 35 others buildings, Sofia (city) - 37 residential and 23 other buildings.
Source: Darik Radio (03.02.2014)

Bulgaria ranks fourth in retail trade in EU for December Bulgaria ranks fourth in growth of retail sales in the EU for the last month of last year, as compared to December 2012. Under Eurostat’s data our country has reported increase to the amount of 5.6%. Solely Luxembourg, Poland and Romania are before us in the rating. The biggest drop has been registered in Germany, Belgium and Finland. As a whole retail trade in the EU has registered a drop of 0.8% in December 2013, as compared to a month earlier. The Eurozone has also registered a decrease to the amount of 1.6% on a monthly basis. Average volume of retail trade for 2013 for the EU, as well as for the Eurozone has reported a drop by 0.2% and 0.9% respectively.
Source: econ.bg (06.02.2014)

Bulgaria Reports BGN 4.7 B Fiscal Reserve Bulgaria's fiscal reserve as of December 31, 2013 amounted to BGN 4.7 B. The data was reported by the Bulgarian Ministry of Finance. The budget balance under the Consolidated Fiscal Program (CFP) on a cash basis for 2013 was negative, amounting to BGN 1,448.4 M (1.8 % of forecast GDP). In comparison, the planned in the 2013 State Budget Law deficit on a consolidated basis was 2% of GDP. The budget balance under the CFP was formed by a deficit under the national budget of BGN 891.6 M and a deficit under EU funds of BGN 556.8 M. The CFP implementation for 2013 shows that the country's fiscal position is stable - the figures reported for the deficit and the government debt are lower than the ones planned in the State Budget Law, while the fiscal reserve level is higher than the one provided in the law, the Finance Ministry says. It further notes that in parallel with maintaining fiscal stability, the Government has begun to implement its priority policies for fostering growth and ensuring a level playing field for the state and the businesses. Indicative thereof is bringing the amount of non-refunded VAT at the end of year 2013 to the lowest level for the past 7 years. During the second half of the year part of the arrears of the central government as of end of June 2013were also paid. Efforts are being made to improve the communication and facilitate the work of the businesses with the revenue administrations, and to lower the administrative burden. The fiscal effects of these measures are already noticeable - during the last months revenues from a number of taxes and social security contributions are gradually improving. Along with improving business environment, other priorities in expenditure policies have included the social responsibilities of the state and the gap in the financing of the health sector. In order to support the most vulnerable groups (including payment of a one-off Christmas allowance for the pensioners with the lowest pensions) and to close the financing gap in the health sector a considerable additional financial resource was provided totaling around BGN 125 M without worsening the budget balance under the CFP. Consolidated revenues and grants under CFP for 2013 stood at BGN 28,981.4 M or 36.7% of forecast GDP compared to 35.4% for 2012. Compared to 2012, CFP proceeds and grants reported a nominal growth by 5.5% (BGN 1,511.9 M). For 2013 tax proceeds, including revenues from social security contributions, totaled BGN 22,370.3 M, which was 97.9% of what was planned. Revenues from direct taxes amounted to BGN 3,901.5 M for 2013, or 96.3% of the planned for the year. Revenues from indirect taxes amounted to BGN 11,590.7 M or 97.3% of annual plans for 2013 of which VAT revenues amounted to BGN 7,366.5 M; excise duty revenues - to BGN 4,055.8 M; customs duty revenues - to BGN 146.2 M and insurance premium tax - to BGN 22.3 M. Proceeds from other taxes, including property taxes and other taxes under the Corporate Income Tax Law, amounted to BGN 817.9 M, or 101.0% of what was planned for 2013. Revenues from social security and health insurance contributions were BGN 6,060.2 M at the end of December, or 99.8% of those planned for the year. Non-tax revenues amounted to BGN 3,966.1 M, or 104.5% of those planned for the year. The proceeds from state charges, fines, sanctions and default interest, concession fees, etc. also performed well. CFP grant proceeds as of 31.12.2013 amounted to BGN 2,645.0 M (70.7% of the plans). The expenditures under the consolidated budget, including the contribution of the Republic of Bulgaria to the EU budget, amounted to BGN 30,429.8 M, which was 95.2% of annual plans. In structural terms, social and health insurance payments, capital expenditure, maintenance expenditure, interest expenditure, etc., reported a growth. The part of Bulgaria's contribution to the EU budget, as paid for 2013 from the central budget, amounted to BGN 934.1 M, which complies with Council Regulation 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources.
Source: econ.bg (06.02.2014)

December Consumption in Bulgaria Increases by 5.6% Y/Y The retail sector in Bulgaria grew by 5.6% in December, year-on-year. Compared to November, however, sales rose by just 0.4%, shows the data of the National Statistical Institute (NSI). Highest growth in December 2013 was posted by the sales of electrical appliances and furniture – by 16.3%. Online purchases rose by 15% and those of computers and other electronic devices by 13.4%. Compared to November 2013, highest growth was posted by the sales of shoes and garments – by 2%. This, according to the NSI is the segment that has an intermittent growth throughout the year. The sales of domestic appliances and furniture grew by 1.2% throughout 2013.
Source: Darik Radio (10.02.2014)

Bulgaria's Industrial Production Index Down 1% M/M in December 2013 According to preliminary data of Bulgaria's National Statistical Institute (NSI), the seasonally adjusted Industrial Production Index decreased by 1.0% on the month in December 2013. In December 2013, the working day adjusted Industrial Production Index fell by 1.0% on the year. In December 2013, the seasonally adjusted Industrial Production Index decreased by 1.5% month-on-month in the sphere of manufacturing, while monthly increases were registered in the spheres of mining and quarrying industry by 14.6% and electricity, gas, steam and air conditioning supply by 2.3%. The most significant decreases in the sphere of manufacturing were registered in the production of computer, electronic and optical products by 22.0%, the production of fabricated metal products, except machinery and equipment, by 21.5%, the production of other transport equipment by 13.1%, the production of motor vehicles, trailers and semi-trailers by 12.3%, the production of wood and of products of wood and cork, except furniture; the production of articles of straw and plaiting materials by 10.8%. Increases were also registered in the production of tobacco products by 17.8%, in the repair and installation of machinery and equipment by 8.9%, in the printing and reproduction of recorded media by 8.6%. In December 2013, Industrial Production Index, calculated from working day adjusted data, decreased by 11.5% on an annual basis in the sphere of electricity, gas, steam and air conditioning supply, while year-on-year increases were registered in the mining and quarrying industry by 12.8% and in the manufacturing by 1.9%. Significant annual increases in manufacturing were registered in the production of beverages, up by 18.7%, the production of rubber and plastic products and the production of motor vehicles, trailers and semi-trailers by 16.3%, and the production of of machinery and equipment by 14.9%. Year-on-year decreases were registered in the production of other transport equipment by 21.9%, in the repair and installation of machinery and equipment by 13.2%, in the production of fabricated metal products, except machinery and equipment, by 8.9%, in the production of electrical equipment by 7.8%
Source: Darik Radio (10.02.2014)

Bulgarian Accommodations' Revenues Up 18.5% Dec 2013 Y/Y The total revenues from nights spent in accommodation establishments in Bulgaria in December 2013 reached 32.9 million BGN or by 18.5% more compared to December 2012. An increase was registered both in revenues from Bulgarian visitors - by 18.7%, and from foreigners - by 18.2%. The data was published Monday by the country's National Statistics Institute (NSI). In December 2013, Bulgaria had 1 882 functioning accommodation establishments - hotels, motels, camping sites, mountain lodges and other establishments for short-term accommodation with more than 10 beds. The total number of rooms in them was 54.8 thousands and the beds were 109.8 thousands. In comparison with December 2012, the total number of accommodation establishments increased by 8.7% and the number of beds in them - by 6.5%. The total number of nights spent in all accommodation establishments, registered in December 2013, was 681.5 thousand or by 13.2% more in comparison with the same month of the previous year, while the greatest increase (by 16.9%) was observed in 1 and 2 star accommodation establishments. In December 2013, 67.1% of all nights spent by foreign citizens and 34.2% of all nights spent by Bulgarians were in 4 and 5 star hotels. 30.7% of all nights spent by Bulgarian residents and 19.9% of all nights spent by foreigners were in 3 star accommodation establishments, while in the rest of accommodation establishments (with 1 and 2 stars) they were 35.1 and 13.0%, respectively. In December 2013, arrivals in all accommodation establishments increased by 7.7%, compared to the same month of 2012, and reached 334.9 thousand. Bulgarian guests were 76.9% of all arrivals and the majority (65.2%) of them spent nights in 1, 2 or 3 stars hotels with 1.9 nights on average. Arrivals of foreigners were 77.2 thousand and 68.8% of them spent nights in hotels with 4 and 5 stars. The average for foreigners was 2.4 nights. In December 2013, the total occupancy of beds in accommodation establishments was 20.9% and the highest one was in 4 and 5 star establishments - 27.6%, followed by occupancy in 3 star facilities - 19.6%, and in 1 and 2 star ones - 16.0%. In comparison with the same month of the previous year, occupancy of beds increased by 1.5 percentage points. The greatest increase was registered in accommodation establishments with 1 and 2 stars - by 2.1 percentage points.
Source: Darik Radio (10.02.2014)

Sea property empires Nearly half of newly-constructed homes in Bulgaria in the last eight to ten years are in or around the cities of Varna and Bourgas. In the analyzed period 125 000 new premises were constructed. Major parts of these apartments are holiday properties that run to more than 25-30 thousand. Bourgas is the city with the greatest number of newly constructed properties in Bulgaria for the pointed period. About 28% of all new homes are built there. Varna takes the second place, while Sofia holds the third position in the ranking. Very cheap apartments for EUR 350 per square meters can be found in Bourgas, while in the ideal center of the city one can’t find an apartment at a price under EUR 700-800 per square meter. In Varna offers for apartments that are located close to the Sea garden are sold firmly at prices over EUR 1000 per square meter. In Bourgas’ wide center properties are assessed at about EUR 600 per square meter, while in the ideal central part of the town they vary about EUR 750, but reach even EUR 850. In Varna properties in the Greece neighborhood and in the ideal center vary about EUR 1000 per square meter.
Source: Trud (10.02.2014)

Bulgaria’s exports for third countries in 2013 up 3.5% y/y Bulgaria’s exports for third countries in 2013 were at the amount of BGN 17.3 billion, up 3.5% y/y, the National Statistical Institute announced. Leading trade partners of the country are Turkey, China, the Russian Federation, Ukraine, Gibraltar and Serbia, which saw some 50% of Bulgaria’s exports. In December 2013, Bulgarian exports for third countries were the amount of BGN 1.4 billion, up 2.4% in comparison with December 2012.
Source: Agency Focus (11.02.2014)

Bulgaria's Export Up 6.8% in 2013 In 2013 the export of Bulgarian goods has risen by 6.8% and the imports by 1.3%. The National Statistics Institute (NSI) data shows that the exports are increasing both to EU member states and non-EU countries, while the import is coming predominantly from the EU. The value of exported goods in 2013 has reached BGN 43.4 B, while the import was worth BGN 50.5 B. The trade balance is still negative, but by BGN 2 B less than in 2012. The NSI data shows that nearly half of Bulgaria's exports are for Turkey, China, Russia, Ukraine, Gibraltar and Serbia. The largest share of imports comes from Russia, Turkey, China and Ukraine. The main EU trading partners of Bulgaria are Germany, Italy, Romania, Greece, France and Belgium who form 71.6% share of Bulgaria's export for the EU member states. The main EU imports come from Germany, Italy, Romania, Greece and Spain.
Source: Dnevnik (11.02.2014)

New premises are mainly two-roomed Nearly 70% of new buildings are houses, while most of the new premises ate two-roomed. This is evident from data for new constructed properties for October and December 2013. Number of entered into exploitation newly constructed residential buildings is 576, or by 15.2% less as compared to the same quarter of 2012. Decrease in number of homes if by one fifth. The biggest share is held by houses (67.3%), followed by residential buildings (15.3%). As compared to the fourth quarter of 2012 their number went down relatively by 67 and 38. Most residential buildings are entered into exploitation in regions Varna - 111 buildings with 551 homes, Bourgas - 94 buildings with 728 homes, and Plovdiv - 77 buildings with 264 premises, The largest part of newly constructed homes is with two rooms (39.5%), followed by those with three rooms (31.7%).
Source: Dnevnik (11.02.2014)

New Buildings Construction in Bulgaria Down 15.2% Q4 2013 Y/Y Compared to the fourth quarter of 2012, in the fourth quarter of 2013, the number of newly-built residential buildings in Bulgaria was down by 15.2%. According to the preliminary data of the National Statistical Institute, the number of these buildings was 576 – 103 fewer than in the fourth quarter of 2012. The registered decrease of the newly-built dwellings in them was 18.9%. In the fourth quarter of 2013, 71.0% of newly-built residential buildings were with steel-concrete construction, 26.0% were with solid structure, 2.6% were with "other" structures and 0.4% were with panel structure. In comparison with the same quarter of 2012, a decrease of the relative share of all type of buildings was observed. Regarding the newly built residential buildings' distribution by type, houses had the highest relative share (67.3%), followed by apartment buildings (15.3%). Compared with the fourth quarter of 2012 their number has dropped by 67 and 38 respectively, while the one of the newly built country houses has risen by 9.
Source: Darik Radio (12.02.2014)

Bulgaria Q4 avg gross monthly wage rises 4.7% q/q The average gross monthly wage in Bulgaria increased by 4.7% on a quarterly basis to BGN 828 in the three months through December, data of the National Statistics Institute (NSI) indicated. Year-on-year, the average gross monthly salary rose by 3.1% in the fourth quarter, NSI said in a statement. The business activities with the highest wages in the period under review were information and communications with BGN 1846, electricity, gas, steam and air conditioning supply with BGN 1522, and financial and insurance services with BGN 1517.
Source: Standart (13.02.2014)

Growth in Bulgaria still anaemic and insufficient “Economic recovery” was a combination of words typical of political speeches, rather than an actual process affecting business and households in Bulgaria throughout 2013, the Capital Daily reports. This is the main conclusion from flash estimates of the National Statistical Institute (NSI) on GDP in the fourth quarter of 2013 that grew 0.4% QoQ and 1% YoY. The NSI will announce the final 2013 data on March 5, 2014, but according to experts economic growth for 2013 will be of 0.5 – 1%. The alarming aspect of this growth rate is that it is not accompanied by signals for quality changes in economy, such as an increase of employment or income. Another cause of concern is that in the October – December period of 2013 companies reduced their investments by 0.8% QoQ and 0.7% YoY. According to data of the Bulgarian National Bank (BNB) direct foreign investments in Bulgaria in 2013 amounted to EUR 1.2 billion or EUR 175 million less compared to 2012. The effect from measures for the reduction of electricity price caused more tenacious deflation than forecast. January was the sixth consecutive month of prices decline, with the deflation rate reaching 2.2%, which caused a drop of the average inflation rate over the past 12 months to the record low 0.3%. At the same time, higher that forecast growth in Germany and France accelerated economic recovery in the euro area in the third quarter of 2013, evoking optimism for a more stable 2014. Eurostat’s data show a 0.3% QoQ economic growth in the euro area for the last quarter of 2013, while the forecasts were for 0.2%. GDP in the EU rose 0.4% QoQ. The euro area and the EU registered YoY economic growth of 0.5% and 1% respectively.
Source: Capital (17.02.2014)

Bulgaria's NSI Reports 0.3% Annual Inflation in Jan 2014 According to Bulgaria's National Statistical Institute preliminary data, the consumer price index in January 2014 was 99.8%, compared to the previous month. The annual inflation in January 2014, compared to January 2013 was 2.2%. The annual average inflation, measured by CPI, in February 2013-January 2014, compared to the previous 12 months, was 0.3%. In January 2014 compared to the previous month the prices of goods and services in the main consumer groups have changed as follows: food and non-alcoholic beverages reported an increase of 0.9%. Housing (rentals, maintenance and repair), water, electricity, gas and other fuels decreased by 1.2%. In the communications sector the prices remained at the same level as in the previous month. According to NSI's preliminary data, the harmonized index of consumer prices (HICP), which is the comparable measure of inflation across EU member states, was 99.8% in January 2014 compared to the previous month. The annual inflation in January 2014 compared to January 2013 was 1.3%. The annual average inflation, measured by HICP, in February 2013 - January 2014 was 0.1%.
Source: investor.bg (17.02.2014)

Bulgaria's GDP Up 1% in Q4 2013 Bulgaria's GDP rose by 1% in the last quarter of 2013, year-on-year, show the flash estimates of the National Statistical Institute (NSI). Compared to Q3 2013, the GDP grew by 0.4%. In nominal value the GDP reached BGN 21.321 B. The services sector has the largest share (71.5%) in total value added, followed by the industrial sector (24.6%) and the agricultural sector (3.9%). In the structure of GDP by the expenditure approach, the largest share belongs to the end consumption (82.2%), which in nominal terms amounted to BGN 17.5 B. The trade balance remains negative. According to the flash GDP estimates by final expenditure in the fourth quarter of 2013 the main contributions to the growth registered have the individual consumption with 0.2% and the exports of goods and services with 0.1%. The import of goods and services decreases its level with 4.0% and gross fixed capital formation decreased by 0.8% in the fourth quarter of 2013 compared to the previous quarter.
Source: investor.bg (17.02.2014)

Bulgaria's jobless rate edges up to 12.2% in Jan Bulgaria’s January jobless rate edged up 0.4 percentage points from the previous month to 12.2%, the country’s Employment Agency said on Monday. A total of 401,233 unemployed were registered with the agency’s offices at the end of last month, up by 15,056 from December, the agency said in a statement. The number of people who found a job in January totalled 16,692. Job vacancies amounted to 10,968 last month. In January, the biggest number of job vacancies was reported in manufacturing, 3,725. Bulgaria, which joined the European Union in 2007, has a population of 7.3 million.
Source: investor.bg (18.02.2014)

685,400 Bulgarians made tourist trips in Q4 2013 In the fourth quarter of 2013, some 685,400 Bulgarian residents have made tourist trips, shows the date of the Bulgarian National Statistical Institute (NSI). The majority of them (80.7%) travelled only within the country, 16.3% - only abroad, while 3.0% - both in the country and abroad. Compared to the same quarter of 2012 the total number of the people who have travelled, aged 15 and over, decreased by 1.0%, as a reduction was observed in the number of the Bulgarian residents, who travelled in the country - by 3.8%, while the number of persons, who travelled abroad increased by 16.5%.
Source: Agency Focus (24.02.2014)

Negative inflation in Bulgaria in January Negative inflation of -1.3% on an annual basis was reported in Bulgaria in January. Besides in our country, negative inflation is registered in Cyprus (-1.6%) and Greece (-1.4%). This is evident from Eurostat’s data. During the analyzed period monthly inflation in the Eurozone has kept its level of 0.8% that was reported in December 2013, as well. Meanwhile on a monthly basis in the first month of the year deflation of 1.1% was reported. In the EU inflation has dropped to 0.9 in January, as compared to its level of 1% in December 2013. Increase in prices of goods and service in the Eurozone is reported for the following commodities: tobacco, electricity, milk, cheese and eggs, while decrease is registered in fuel prices and telecommunications
Source: econ.bg (25.02.2014)

Bulgaria Jan foreign tourist arrivals rise 4.7% y/y Foreign tourist arrivals in Bulgaria totaled 368,100 in January, up 4.7% on the year, official statistics showed on Thursday. Tourist arrivals from EU member states accounted for 44.4% of all foreign tourists in January, up by 1.5% from the same period in 2013, the National Statistics Institute said in a press release. The increase reflects a rise by 7.2% in the number of visitors from Romania and by 6.9% of visitors from Poland. Tourist arrivals from European non-EU member states increased by 8.4% on the year in January, driven by an increase by 14.9% in visitors from Russia and by 12.5% in arrivals from Ukraine. As many as 34.3% of all foreigners who visited Bulgaria in January were visiting friends or relatives, or just transiting the country, 50.6% were holidaymakers and 15.1% came on business.
Source: investor.bg (28.02.2014)

Bulgaria’s Construction and Industry Stay Positive in Feb Managers remained optimistic about their businesses in February, according to data of Bulgaria’s National Statistical Institute regarding Business Conjuncture. In February 2014 the total business climate indicator preserves its level from the previous month. The inquiries report an improvement of the indicator in industry and construction, and a decrease in retail trade and service sector, the NSI reports. The business climate in industry indicator increases by 1.5% in comparison with January due to the more optimistic managers’ assessments about the business situation of the enterprises. However the present production activity is assessed as slightly decreased, while in the expectations about the activity in the branch over the next 3 months some improvement has been observed. The most serious obstacles for the business development in the branch continue to be connected with the uncertain economic environment and insufficient domestic demand, pointed out respectively by 54.7% and 42.4% of the industrial entrepreneurs. As regards the selling prices in industry the managers expect them to remain unchanged over the next 3 months. In February the composite business climate in construction indicator increases by 2.7% which is due to the improved construction entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months. Their forecasts with regard to the construction activity over the next 3 months are also more favorable. The inquiry also reports a decrease in the number of the clients with delay in payments. The main factor limiting the activity in the branch remains the uncertain economic environment, though in the last month a decrease of its negative influence is observed. In the second and third place are the financial problems and competition in the branch factors. Concerning the selling prices in the construction the managers’ expectations are for preservation of their level over the next 3 months. The composite indicator business climate in retail trade decreases by 2.1% compared to the previous month due to the worsening retailers’ expectations about the business situation of the enterprises over the next 6 months. However their prognoses concerning the volume of sales and orders placed with suppliers over the next months are more favorable. In February the inquiry reports strengthening of the negative impact of the competition in the branch factor which shifts the enterprises’ difficulties related to the uncertain economic environment and insufficient demand. As regards the selling prices majority of the retailers foresee them to remain unchanged over the next 3 months. In February the composite indicator business climate in service sector decreases by 3.0% which is due to the more unfavorable managers’ assessments about the present business situation of the enterprises. With regard to the present demand for services their opinions are more reserved, while their expectations over the next 3 months are improved. The uncertain economic environment and competition in the branch continue to be the main factors limiting the business development in the branch, as in the last month a decrease of their negative influence is observed. Concerning the selling prices the managers forecast preservation of their level over the next 3 months, the NSI Business Conjuncture report concludes.
Source: Darik Radio (04.03.2014)

Youth Unemployment in Bulgaria On the Rise The unemployment among the non-studying Bulgarian youth up to 25 years of age has risen sharply in the past year. According to a Eurostat survey in January 2014 it reached 30%, while in January 2013 it was 27.8% or around 63 000 people. By unemployment rate Bulgaria is at the seventh position in Europe. In January this year there were 424 000, which is 13.1% of the people of working age. It is by 0.1% more than in December 2013. According to the Eurostat data, employment among Bulgarian women remains higher than among men. The unemployment rate was 12.5% and 13.4%, respectively. The total unemployment in the EU in January 2014 is 10.8%. The highest unemployment rates are in Greece, 28% and Spain, 26%. The lowest unemployment rates are in Austria, Germany and Luxembourg.
Source: mediapool.bg (04.03.2014)

Bulgaria's Employee GDP Increases by 2.3% - NSI The gross domestic product per person employed increased by 2.3% in Q4 of 2013 compared to Q4 of 2012, according to preliminary data of Bulgaria's National Statistical Institute. According to the preliminary data in Q4 2013, employees in the economic sector are 3 255.4 thousand. The employment structure by economic activity shows an increase in the share of employees in the service sector in the fourth quarter of 2013 compared to the same quarter of 2012. Each employee makes on average BGN 15.7 GDP per hour worked. The average gross value added (GVA) per person employed in the fourth quarter of 2013 has increased by 3.3%, the NSI reports. According to the preliminary data for the fourth quarter of 2013, the level of labor productivity is highest in the service sector – BGN 6 272.0 average gross value added per person employed. In the industrial sector each employee makes an average of BGN 6 038.9 GVA. The lowest labor productivity was recorded in agriculture with BGN 1 318.1 GVA per employee, the NSI informs.
Source: profit.bg (06.03.2014)

Bulgaria Has Achieved its 2020 Renewable Energy Target Bulgaria, Estonia and Sweden have achieved their 2020 renewable energy targets, according to Eurostat. The share of renewables in gross final energy consumption is one of the headline indicators of the Europe 2020 strategy. The target to be reached by 2020 for the EU28 is a share of 20% renewable energy use in gross final energy consumption. The national targets take into account the Member States' different starting points, renewable energy potential and economic performance. In 2012, Bulgaria's share of renewables in gross final energy consumption stood at 16.3%, against a target of 16% for 2020. In 2004, Bulgaria's share of renewables in gross final energy consumption amounted to 9.6%, increasing to 14.4% in 2010 and to 14.6% in 2011. In 2012, energy from renewable sources was estimated to have contributed 14.1% of gross final energy consumption in the EU28, compared with 8.3% in 2004, the first year for which this data is available. Largest increases in share of renewables between 2004 and 2012 in Sweden, Denmark and Austria. Since 2004, the share of renewable sources in gross final consumption of energy grew in all Member States. The largest increases during this period were recorded in Sweden (from 38.7% in 2004 to 51.0% in 2012), Denmark (from 14.5% to 26.0%), Austria (from 22.7% to 32.1%), Greece (from 7.2% to 15.1%) and Italy (from 5.7% to 13.5%). The highest shares of renewable energy in final energy consumption in 2012 were found in Sweden (51.0% of energy from renewable sources in gross final consumption of energy), Latvia (35.8%), Finland (34.3%) and Austria (32.1%), and the lowest in Malta (1.4%), Luxembourg (3.1%), the United Kingdom (4.2%) and the Netherlands (4.5%). In 2011, Estonia was the first Member State to reach its 2020 target and in 2012 Bulgaria, Estonia and Sweden already achieved their 2020 targets (16%, 25% and 49% respectively).
Source: Capital (11.03.2014)

Bulgarian Industrial Production Grew in January Industrial production in Bulgaria was up 1.4% in January and grew 2.3% on a yearly basis. Data by the National Statistical Institute has shown that car manufacturing has registered an increase of 48.5% compared to January 2013, as Bulgarian website Investor.bg reports. Printing was up 17.5%, machinery construction rose 16.3%, and pharmacy had a 15.1% higher output. The sectors above, as well as communication and information technology, are considered by the World Bank as fields with huge potential for development in Bulgaria. Vehicle manufacturing (cars excluded), however, has dwindled by 31.9% compared to January last year, as well as metallurgy (17.6%), and tobacco production (11.2%). Industrial production, along with consumption and exports, are expected this year to drive the economy further than the 0.9% increase of GDP in 2013.
Source: investor.bg (11.03.2014)

Bulgaria reports 0.5% increase in turnover in retail trade in January By preliminary seasonally adjusted data in January 2014 the turnover in Retail trade, except of motor vehicles and motorcycles at constant prices increased by 0.5% compared to the previous month, the National Statistical Institute (NSI) announced. In January 2014 the working day adjusted turnover in Retail trade, except of motor vehicles and motorcycles grew by 5.5% in comparison with the same month of the previous year. In January compared to the previous month the turnover increased in the ‘Retail sale of computers, peripheral units and software; telecommunications equipment’ and in the ‘Retail sale of automotive fuel’ by 1.7%, in the ‘Retail sale of audio and video equipment; hardware, paints and glass; electrical household appliances’ by 0.5% and in the ‘Dispensing chemist; retail sale of medical and orthopaedic goods, cosmetic and toilet articles’ by 0.3%. A decrease was registered in the ‘Retail sale via mail order houses or via Internet’ by 6.5%, in the ‘Retail sale of textiles, clothing, footwear and leather goods’ by 1.3%, in the ‘Other retail sale in non-specialised stores’ and in the ‘Retail sale of food, beverages and tobacco’ by 1.2%.
Source: Standart (11.03.2014)

Bulgaria's Exports to EU Increase by 9% in 2013 – NSI In 2013, Bulgarian exports to the EU increased by 9.1% compared to the previous year and amounted to BGN 26.1B, according to the National Statistical Institute preliminary data. Main trade partners of Bulgaria were Germany, Italy, Romania, Greece, France, Belgium and Spain which accounted for 75.3% of the exports to the EU Member States. In December 2013, exports to the EU increased by 3.4% compared to the corresponding month of the previous year and amounted to BGN 1.7B, the NSI reports. Bulgarian imports from the EU in 2013 grew by 3.1% compared to the previous year and added up to BGN 30.2B at Cost Insurance and Freight (CIF) prices. The largest amounts were reported for the goods imported from Germany, Italy, Romania, Greece, Spain and Hungary. In December 2013, Bulgarian imports from EU Member States increased by 12.7% compared to the corresponding month of the previous year and amounted to BGN 2.5B at CIF prices. The foreign trade balance of Bulgaria at export FOB (Free on Board) -import CIF with EU in 2013 was negative and added up to BGN 4031.9M. At FOB/FOB prices (after elimination of transport and insurance costs on imports) the trade balance was also negative and amounted to BGN 2650.9M. In 2013 compared to 2012, the largest growth of 29.5% in the exports of Bulgaria to EU distributed according to the Standard International Trade Classification was recorded in the Animals and vegetable oils, fats and waxes section. A drop of 3.6% was recorded in section 'Mineral fuels, lubricants and related materials'. In imports from EU the largest increase of 8.7% was reported in section 'Beverages and tobacco' while the most notable fall of 5.1% was observed in the section 'Animals and vegetable oils, fats and waxes'.
Source: Capital (12.03.2014)

Bulgaria's Hotels Keep Their Heads Above Water in January Bulgaria's hotels have reported revenue growth and increased number of tourists in Jan 2014, according to the National Statistical Institute. In January 2014, 1886 tourist accommodation establishments-hotels, motels, camping sites, mountain chalets and other establishments for short-term accommodation have operated in the country. The total number of rooms was 55.2 thousand and the number of beds was 110.1 thousand, the NSI reports. In comparison with January 2013, the total number of accommodation establishments increased by 5.3%. The total number of days spent in all tourist accommodation establishments registered in January 2014 was 733.8 thousand or by 13.9% more in comparison with the same month of the previous year, as the greatest increase by 24.0% was observed in 4 and 5 stars accommodation establishments. In January 2014, the arrivals in all accommodation establishments increased by 10.2% compared to the same month of 2013 and reached 288.2 thousands. In January 2014, the total number of bed reservations in tourist accommodation establishments was 21.9% and it was the highest in 4 and 5 stars accommodation establishments-32.9%. The total revenues in January 2014 reached BGN 34.3M or some 15.1% more compared to January 2013.
Source: investor.bg (12.03.2014)

Bulgaria's Third Countries Trade Tumbles in Jan 2014 n January 2014 Bulgarian exports to third countries decreased by 22.1% compared to the corresponding month of 2013 and amounted to BGN 1.1B. Main trade partners of Bulgaria were Turkey, China, United Arab Emirates, Singapore, Russian Federation and Former Yugoslav Republic of Macedonia which accounted for 55.5% of the exports to non EU countries, according to preliminary data of Bulgaria's National Statistical Institute (NSI). Bulgarian imports from third countries in January 2014 decreased by 2.0% compared to the corresponding month of 2013 and added up to BGN 1.6B (at CIF prices). The largest amounts were reported for the goods imported from Russian Federation, Turkey, China and Egypt. The foreign trade balance of Bulgaria (export FOB-import CIF) with third countries in January 2014 was negative and added up to BGN 491.5M, NSI data shows. The trade balance at FOB/FOB prices (after elimination of transport and insurance costs on imports) was also negative and amounted to BGN 404.2M. In January 2014 compared to the corresponding month of 2013 the largest growths in Bulgaria's exports to third countries distributed according to the Standard International Trade Classification were recorded in the Food and live animals section (6.8%). The most notable drop of 46.8% was reported in sections 'Crude materials, inedible (except fuels)' and 'Animals and vegetable oils, fats and waxes' - 41.3%. In imports from third countries the largest growth of 203% was reported in section 'Beverages and tobacco' while the most notable fall was observed in section 'Animals and vegetable oils, fats and waxes' (34.0%). In January 2014 the value of all exported goods from Bulgaria amounted to BGN 3.1 B which is a decrease of 10.9% compared to the corresponding month of 2013. The total value of all the goods imported in the country in January 2014 amounted to BGN 3.9B (at CIF prices), or by 5.6% more than the corresponding month of 2013.The total foreign trade balance (exports FOB-import CIF) was negative in January2014 and amounted to BGN 836.7M which was BGN 585.2M more than the balance in January 2013.
Source: Capital (13.03.2014)

Only 3% of global retailers plan expansion in Bulgaria Bulgaria is the 46th most demanded for destination for expansion by global retailers. 3 % of all surveyed world retailers have shown interest in investing in Bulgaria. The same rating is held by Macao, India, Oman and Serbia. Greece is ranked 44th, slightly before Bulgaria. Romania, together with Ukraine took the 35th position, while Croatia is ranked 28th. Top 10 countries in the rating are mainly European ones-Germany, France, Great Britain, Austria, Switzerland, Belgium, Spain, Italy and Czech Republic.
Source: investor.bg (13.03.2014)

With –2.6% annually, Bulgarian inflation breaks records in February Annual inflation by the end of February was -2.6%, the National Statistical Institute announced. This is an absolute record - the lowest inflation rate since national statistics measure price movements in Bulgaria. After January, when monthly inflation was -0.2% for February it came to -0.4%, according to the NSI.This continues the trend from last year, when falling prices were reported for over seven months. Specifically, the negative inflation in February was due to falling prices of clothing (-2.3 %) , footwear ( -4.7% ) , gasoline ( -1.6% for A95H ) and a number of home appliances such as refrigerators and freezers (-1.3 %) , cookers ( -1.7 percent ) and TVs ( -2.1% ). In February, many food items have also become cheaper, such as pork (-1.3 %) , chicken (-1 %) , oil (-1.3 %) , tomatoes ( -9% ) , lettuce ( -5.1% ) and sugar ( -4.1% ), but overall for all food items an increase of 0.2% was reported. The drastic price fall can be good for individuals, but it is not healthy for the economy as a whole because it limits the willingness of companies to invest and create jobs. This, in turn, holds income growth .
Source: Standart (14.03.2014)

Bulgaria with stable positions in a global rating of prices of homes Bulgaria keeps comparably stable positions in a global rating of prices of homes in the last three months of 2013. The ranking includes 56 countries. Our country takes 43rd place in the index among countries with average drop in prices. In drop of prices our country holds the 14th place among the 56 markets of real estates. Thus it is 11th in the EU. In the last quarter of the year drop in homes’ prices in Bulgaria is assessed to 1, 2% on an annual basis. As compared to the previous quarter of 2013 the decrease is to the amount of 0, 1%. For the same period of 2012 decrease in prices of 1, 4% and 0, 7% respectively have been registered on an annual basis.
Source: investor.bg (14.03.2014)

13,000 Bulgarians will get new jobs in April In April several programs will be launched, providing more than 13,000 new jobs, social committee head Cornelia Ninova announced. "For us, the fight against unemployment and employment growth remain an absolute priority. As of February, unemployment was at 12.2 %, according to the National Employment Agency, thus it showed a tendency of a slight decrease. Since January 25,415 unemployed people have begun work" Ninova said. She said the programs that are starting the security sector will employ about 5,000 people , helping the Interior Ministry to cope with everyday crime. Several regional employment programs aimed at regional and municipal administrations will also give jobs to some 2,000 job seekers. The measures to support business to create new jobs will employ 2,430 people from April. "From April, a total of 13,230 Bulgarians will be able to start their new work" said Ninova .
Source: Standart (17.03.2014)

Unemployment rate in Bulgaria in 2013 is 436,300, according to statistics In 2013, the economically active population in Bulgaria aged between 15 and 64 years were 3,322,700 or 68.4% of the population of the same age. Compared to 2012, the economic activity rate (15-64 years old) increased by 1.3 percentage points, the National Statistics Institute announced. The total number of employees is 2,934,900 or 46.9% of the population aged 15 and above. Employed persons aged between 15and 64 years are 2,889,400. The employment rate for the same age group is 59.5%, respectively 62.1% for men and 56.8% for women. The employment rate for the population aged between 20 and 64 years was 63.5% or 0.5 percentage points higher than in 2012. The increase in the ratio is almost the same for men and women, with values reaching 66.4% for men and 60.7% for women.
Source: Agency Focus (18.03.2014)

Bulgaria unemployment rate hits 13% The national unemployment rate rose by 0.6% y/y, reaching 12.9% in 2013, reported the press center of the National Institute of Statistics. The unemployment rate among men increased by 0.4% and by 1.0% among women, reaching 13.9% and 11.8% respectively. 46.9% îf the adult population (over 15 years of age) is employed. This corresponds to 2.93 million people. 2.89 million people between 15 and 64 have jobs. This corresponds to 59.5%, respectively 62.1% for men and 56.8% for women. The employment rate among the population in the age group 20 - 64 is 63.5%, up by 0.5% y/y. The increase is almost the same for both genders, respectively 66.4% for men and 60.7% for women. The employment rate among the population in the age group 55 - 64 is 47.4%, which is up 1.7% y/y. This corresponds to a rise of 2.1% for women and 1.1% for men, the NIS reports. A total of 436,000 people in Bulgaria are unemployed, of whom 249,000 men and 186,000 women. Experts with the institute explain that the unemployment rate among people between 15 and 24 is 28.4%, ànd 21.8% among people between 15 and 29. This corresponds to an increase of 0.3% and 1.0% y/y. 250,000 Bulgarians have been unemployed for over a year.
Source: Standart (18.03.2014)

Hourly Labor Cost in Bulgaria Runs Up in Q4 2013 The total hourly labor cost in Q4 2013 has risen by 4.3% compared to Q4 2012, according to the preliminary data of Bulgaria's National Statistical Institute. The total hourly labor cost grew by 4.4% in industry and by 4.8% in services. In construction the total hourly labor costs rose by 4.2%. 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'-12.3%, 'Mining and quarrying'- 8.9% and 'Education'-8.4%, the NSI reports. The highest decrease in total labor costs was observed in 'Arts,entertainment and recreation' by 12.8% and 'Other service activities' by 8.8%. In the structure of the total labor costs, the wages and salaries costs per hour worked have grown by 4.0% in comparison with a year earlier, while the non-wage costs rose by 6.2%. Among the economic activities in the fourth quarter of 2013 compared to the fourth quarter of 2012 the growth rate of wages and salaries component ranged from (-14.3%) in 'Arts, entertainment and recreation' to 11.7% in 'Wholesale and retail trade; repair of motor vehicles and motorcycles'.
Source: investor.bg (20.03.2014)

Trips of Bulgaria nationals abroad up 1.4% in February In February 2014, the number of the trips of Bulgarian residents abroad was 249,500 or 1.4% above the registered in February 2013, shows a recent report of Bulgaria’s National Statistical Institute (NSI). The trips for other purposes (as guest, education and visit the cultural and sport events) composed the greatest share of the total number of trips of Bulgarian residents abroad - 56.4%, followed by the trips with professional purpose - 24.3%, and with holiday and recreation purposes - 19.3%. In February 2014, the number of arrivals of visitors from abroad to Bulgaria was 320,400 as compared to February 2013 they remain approximately at the same level. An increase was registered in the visits with professional purpose - by 6.7%, while the visits with holiday and recreation purpose and other purposes decreased by 1.2 and 0.6% respectively.
Source: Agency Focus (27.03.2014)

Bulgaria Had Lowest Hourly Labor Costs in EU in 2013 Bulgaria had the lowest hourly labor costs in the EU in 2013, yet it was the country to register the highest increase in the segment since 2008, according to Eurostat. According to Eurostat data, in 2013 Bulgaria registered the lowest hourly labor costs among EU member states, at EUR 3.7, followed by Romania with EUR 4.6. In 2013, average hourly labor costs in the whole economy (excluding agriculture and public administration) were estimated to be EUR 23.7 in the EU28 and EUR 28.4 in the euro area (EA17). The highest hourly labor costs were registered in Sweden (EUR 40.1), Denmark (EUR 38.4), Belgium (EUR 38.0), Luxembourg (EUR 35.7) and France (EUR 34.3). Within the business economy, labor costs per hour were highest in industry (EUR 24.6 in the EU28 and EUR 31.0 in the euro area), followed by services (EUR 23.9 and EUR 28.0 respectively) and construction (EUR 21.0 and EUR 24.5). In the mainly non-business economy (excluding public administration), labor costs per hour were EUR 23.2 in the EU28 and EUR 27.7 in the euro area. Labor costs are made up of wages & salaries and non-wage costs such as employers' social contributions. The share of non-wage costs in the whole economy was 23.7% in the EU28 and 25.9% in the euro area, varying between 8.0% in Malta and 33.3% in Sweden. Between 2008 and 2013, hourly labor costs in the whole economy expressed in euro increased by 10.2% in the EU28 and by 10.4% in the euro area. Within the euro area, the largest increases were recorded in Austria (+18.9%), Slovakia (+17.0%) and Finland (+15.9%). Decreases were observed in Greece (-18.6%) and Portugal (-5.1%). For Member States outside the euro area, and expressed in national currency, the largest increases in hourly labor costs in the whole economy between 2008 and 2013 were registered in Bulgaria (+44.1%) and Romania (+32.8%), and the smallest in Croatia (+0.7%), Lithuania (+5.0%), the United Kingdom (+6.3%) and Latvia (+6.9%).
Source: investor.bg (28.03.2014)

Bulgaria's Construction and Retail Trade Stay Strong in March Bulgaria's total business climate indicator has increased by 1.2% in March due to the improved business climate in construction and retail trade. The business climate in industry indicator decreases by 1.3% in comparison with February due to the more unfavorable managers' assessments regarding the present business situation of the enterprises, according to the latest data released by Bulgaria's National Statistical Institute. There is a slight improvement of managers' assessments as regards the production activity. The uncertain economic environment and the insufficient domestic demands continue to be the main factors, pointed out by the industrial entrepreneurs as an obstacle for the development of their business. Concerning the selling prices in industry the prevailing managers' expectations are for preservation of their level over the next 3 months. In March the composite indicator "business climate in construction" increased by 1.5%, which is due to the improved construction entrepreneurs' expectations about the business situation of the enterprises over the next 6 months. Their forecasts regarding the construction activity over the next 3 months are also favorable. The business climate in retail trade recorded an increase by 7.0% compared to the previous month. The majority of the retailers expect the selling prices to preserve over the next 3 months. The business climate in service sector index has preserved its levels from February. As regards the demand for services the present tendency is estimated as slightly reduced, while the expectations over the next 3 months are more optimistic.
Source: investor.bg (31.03.2014)

Producer prices mark slight decrease y/y Data for February show that producer prices on the domestic market fell by 2.5% y/y and remained unchanged from January. Prices in the mining industry decreased by more than 10%, while those in the processing industry declined by less than one percent. In one year prices of production and distribution of electricity, heat and gas decreased by 3.7%, according to data of the National Statistical Institute. Tobacco production rose by 8.7% y/y, leather processing - by 7.4%, while car production increased by 5.3%. Producer prices dropped by 0.1% from January 2014. There is a slight increase in the mining sector and a 0.2% drop in the processing industry, whereas no change is observed in the production and distribution of electricity, heat and gas. A more substantial decrease is observed in the production of base metals (over 10%), leather processing and food production (almost 5%). The total producer price index in February dropped by 3.3% y/y. The drop in the processing industry is 2.4% y/y. Chemical production prices decreased by over 2%, while furniture production prices and clothing production prices increased by 2.2% and 1.9% respectively.
Source: investor.bg (31.03.2014)

Bulgaria’s Jan power output falls 9.1% m/m Bulgaria’s production of electricity fell by 9.1% on a monthly basis to 4,260 gigawatthours (GWh) in January, the National Statistics Institute (NSI) said on Monday. Year-on-year, Bulgaria’s electricity output decreased by 6.7% in January, the NSI said in a statement. The country's production of fossil fuels grew by 13.6% on the year, while its unleaded gasoline output fell by 2.1% in the period under review.
Source: investor.bg (01.04.2014)

Unemployment in Bulgaria decreased slightly in February to 13.1% Unemployment in Bulgaria has dropped by the minimum 0.1 percentage points in February to 13.1%, according to the EU statistics office Eurostat. The data for January were revised upward - the unemployment rate for the first month of the year was 13.2%, not 13.1%, as was the preliminary assessment. In December the unemployment was 13.2%. In February 2013 the unemployment rate was 12.9%. Total 443 thousand Bulgarians were unemployed in February compared to 445 thousand in January and 434 thousand in February 2013. According to the National Employment Agency unemployment in the country in February was 12.2%. However, the Agency makes calculations based on registered in labor offices, while Eurostat – on the economically active population. Youth unemployment in the country remained stable in February - 28.4%, although the number of unemployed young people up to 25 years decreased by 1000 to 61 thousand people. In February 2013 the youth unemployment rate was 27.8%, while the number of unemployed young people up to 25 years - 68 thousand.
Source: investor.bg (02.04.2014)

Bulgarian Men Face Higher Unemployment Rates than Women in 2013 A total of 46% of Bulgarians aged 15 years and above have been employed in 2013, according to Bulgaria's National Statistical Institute. The total number of employed persons in 2013 was 2 934.9 thousand or 46.9% of the active population. The number of unemployed in 2013 was 436.3 thousand, of whom 249.8 thousand - male and 186.5 thousand-female. The unemployment rate increased by 0.6% compared to 2012 and reached 12.9%. The unemployment rate among male population was higher in 2013 recording an increase by 0.4% and for female by 1.0%, reaching 13.9 and 11.8% respectively. Industrial Production Index increased by 2.3% compared to the same month of 2013 (preliminary data). A decrease by 1.5% was registered in electricity, gas, steam and air conditioning supply. According to the preliminary data, the Gross Domestic Product (GDP) at current prices in the fourth quarter of 2013 amounted to BGN 21463 million and the GDP per person amounted to BGN 2954. In the fourth quarter of 2013, the GDP increased by 1.2% compared to the same quarter of the previous year. According to the NSI business inquiries in February 2014 the industrial confidence indicator increased by 0.6% compared to January. In January 2013 the export increased by 23.6% year-on-year. Imports of goods (FOB) in January 2014 amounted to EUR 1907.8M, increasing by EUR 97.7M (5.4%) compared to January 2013 (EUR 1810M). In January 2013 the imports increased by 6.3% on a year-on-year basis. Direct investment abroad increased in January 2014 by EUR 12.3M compared to an increase of EUR 4.4M in January 2013. According to preliminary data, the foreign direct investments in Bulgaria were positive in January 2014 and amounted to EUR58.3M (0.1% of GDP), compared to EUR 70.8M (0.2% of GDP) in January 2013. The external balance (exports-imports of goods and services) in January 2014 was negative according to preliminary data and amounted to BGN 836.7M or BGN 585.2M more than in January 2013. The volume of loans to Non-financial corporations, households and Non-profit institutions serving households (NPISHs) in February 2014 amounted to BGN 53.757B (66.7% of the projected GDP for 2014). In February 2014 the loans to Non-financial corporations increased by 1% on annual basis (0.6% decrease in January 2014) and at the end of month amounted to BGN 35.219B (43.7% of GDP). Loans to Households and NPISHs were BGN 18.538B (23% of GDP) at the end of February 2014. An increase of 0.04% compared to the same month of 2013 was registered (0.2% annual decline in January 2014).
Source: expert.bg (03.04.2014)

Bulgaria is second in growth of retail in the EU Retail trade in Bulgaria grew by 1% in February compared to January. Yoy increase in the country amounted to 9.2%, which puts Bulgaria in second place on this indicator in the EU. Compared to February 2013 higher growth was recorded only in Luxembourg - 12.8%, according to the European statistical office Eurostat. Retail trade across the EU increased by 0.5% compared to the first month of this year and by 0.4% in the euro area. On an annual basis the index registered growth of 1.5% in the EU and 0.8% in the 18 -nation currency union. On a monthly basis the greatest increase is in Malta - 1.9%, Denmark and Romania - by 1.4% each, Germany - 1.3%. The decrease is most significant in Estonia - 3.4%, Poland - 1.5%, and Slovenia and Finland - 1.4% each. Compared to February 2013, except Luxembourg and Bulgaria, significant increase was registered in Romania - 8.7% and Hungary - 6.7%.
Source: econ.bg (04.04.2014)

Bulgarian Finance Ministry Increases 2014 GDP Growth Forecast to 2.1% Bulgaria's Finance Ministry has improved its 2014 GDP growth forecast. Citing improved forecasts of the European Commission (EC) and the International Monetary Fund (IMF) about the development of the European and the global economy, the Finance Ministry has grown more optimistic about Bulgaria's economic development. Bulgaria's Finance Ministry now expects economic growth to reach 2.1% in 2014, up from a previous GDP growth forecast of 1.8%, according to investor.bg. The GDP growth is to accelerate to 2.6-3.4% in the period 2015-2017. The more optimistic forecast is attributed to expectations that domestic demand will increase thanks to an increase in consumer confidence, labor market recovery and an increase in household income. The IMF forecast about Bulgaria's 2014 GDP growth amounts to around 1.6%. The EC also improved its 2014 GDP growth forecast for Bulgaria to 1.7%, up from a rate of 1.5% in November 2013. The European Bank for Reconstruction and Development (EBRD) predicts a GDP growth of 2% in 2014 for Bulgaria. The Finance Ministry sees investments as another factor which is expected to set the economy in motion. Finance Minister Petar Chobanov predicts a growth in investments by 3% due to the capital spending of the government. The Finance Ministry expects foreign direct investment (FDI) to stabilize at a rate of slightly below 3% of the GDP. If that rate is achieved, it will suffice to cover the deficit on the current account of the balance payments. The Finance Ministry vows to keep working on reducing the budget deficit. The budget deficit is to drop to 0.9% of the GDP by 2017. The forecasts of a budget deficit of 1.5% in 2015 and a budget deficit of 1.1% in 2016 remain unchanged. According to Petar Chobanov, the budget deficit in end-February 2014 was lower than in February 2013. The Finance Ministry expects unemployment to register a slight decrease to 12.8%. In February 2014, the unemployment rate increased to 13.1%. The Finance Ministry expects that the unemployment rate will drop to 10.9% by 2017. The improved outlook is explained with the expectations for a gradual acceleration in employment recovery combined with an increased labour-market demand and increased economic activity. In 2014, the inflation rate is to remain comparatively low under the impact of the anticipated favorable situation on international markets for raw materials. In 2015, the inflation rate is to accelerate to 2.4%, after which it is to slow down to 1.7-1.8% in the period 2016-2017. By end-February 2014, the deflation rate in Bulgaria reached 2.2% on an annual basis after eight consecutive monthly decreases in the consumer price index. Petar Chobanov has assured that the deflationary trend from the beginning of the year is expected to be dealt with.
Source: Trud (07.04.2014)

Bulgaria's Manufacturing Increased in February - NSI Industrial production in February increased by 0.7% compared to January and by 6.5% on an annual basis, according to data released by Bulgaria's National Statistical Institute. In February 2014 as compared to January 2014, the seasonally adjusted Industrial Production Index increased in the manufacturing by 3.0%, while decreases were registered in the mining and quarrying industry by 16.7% and in the electricity, gas, steam and air conditioning supply by 8.1%, according to NSI's preliminary data. The most significant increases of production in the manufacturing were registered in the manufacture of beverages by 10.2%, in the manufacture of chemicals and chemical products by 9.1%, in the manufacture of other non-metallic mineral products by 7.9%, in the manufacture of tobacco products by 6.4%, in the manufacture of motor vehicles, trailers and semi-trailers by 5.1%. There was decrease in the manufacture of computer, electronic and optical products by 9.7%, in the manufacture of machinery and equipment by 4.5%, in the manufacture of basic pharmaceutical products and pharmaceutical preparations by 4.1%. On annual basis in February2014 the Industrial Production Index, calculated from working day adjusted data, increased in the electricity, gas, steam and air conditioning supply by 8.0% and in the manufacturing by 7.2%, while in the mining and quarryingi ndustry a decrease by 0.2% was seen. In the manufacturing, the more significant increases compared to the same month of the previous year were seen and in the manufacture of motor vehicles, trailers and semi-trailers by 45.8%, in the manufacture of basic metals by 20.9%, in the manufacture of fabricated metal products, except machinery and equipment by 18.9%, in the manufacture of other non-metallic mineral products by14.1%. Decreases were registered in the manufacture of computer, electronic and optical products by 13.4%, in the manufacture of other transport equipment by 6.6%, in the repair and installation of machinery and equipment by 2.9%.
Source: Capital (09.04.2014)

Retail In Bulgaria On The Rise In February retail and store turnover in Bulgaria increased – both year-on-year and compared to January 2014, shows data of National Statistics Institute (NSI). The retail sector grew by 1%, compared to January and by 9.2%, compared to February 2013. Highest growth was posted in the consumer electronics and domestic appliances stores - by 1.9%, compared to the preceding month, textiles, clothes and shoes – by 1.4%, computers and communications equipment – by 1.1% and food, alcohol and cigarettes – by 0.8%. The sales of automobile fuels decreased by 0.7%. Compared to February 2013, sales increase in almost all sectors. The most considerable growth was posted in the retail via internet, post and telephone and the sales of computer and communications equipment – by 18.5% both.
Source: investor.bg (09.04.2014)

250,000 Bulgarians do not search for jobs Brussels. About a quarter of a million Bulgarians (253,000) do not work and do not actively seek, an analysis of Eurostat looking for potential additional labor force in the EU shows. Other 30,000 Bulgarians are seeking work but not immediately, the EU statistics report. According to Eurostat data about 33,000 Bulgarians are working in part-time, which is about 1 percent of all employees in the country , reminiscent Thursday. About 10 million Europeans in the EU- 28 are working in underemployment. Greece (72 per cent) , Cyprus ( 59 per cent) and Spain ( 57 per cent) have the most part-time labourers.
Source: Capital (14.04.2014)

Bulgarian Exports Decreased in Beginning of 2014 Exports to the EU dwindled by 2.6% on a yearly basis in January and was estimated at BGN 2 B. Statistics on trade with non-EU countries yield worse results, with a 14.2% decrease in exports for January and February, the website Expert.bg reports, citing official data. It amounted to BGN 2.4 B. Within the EU, Germany, Italy, Greece, Romania, France and Belgium are Bulgaria's top trade partners, while Turkey, Singapore, China, Russia, OAE and FYR Macedonia rank as most important to commerce among states outside the bloc. EU-originated imports to Bulgaria in January were up 12.8% compared to the same month in 2013, but that of third countries dropped by 8.8%. Trade balance with the EU in January 2014 was negative, with a deficit totaling BGN 365 M, or BGN 256.9 on FOB prices (which do not include transport and product insurance costs). With non-EU countries it iwas BGN 605.5 M or BGN 448.6 M.
Source: Agency Focus (14.04.2014)

Bulgarian Industrial Enterprises to Cut Investment by 6.3% Y/Y in 2014 Industrial establishments plan to cut investments by an average 6.3% on the year in 2014, according to a survey of Bulgaria's National Statistical Institute (NSI). According to the survey, conducted among the chief executives of industrial establishments in March 2014, the private sector has a stake of around 84% in the total volume of projected costs for acquiring fixed tangible and intangible assets in 2014. Managers in this sector predict a decrease in investment programs by 15.3% from the previous year. By main industrial groupings, energy and water-related industries account for the biggest share of projected investments in 2014 (44.3%), up by 1.7% from 2013. Second and third place by projected investments are the sectors manufacturing goods for intermediate consumption (with a relative share of 31.2%) and the sectors manufacturing non-long-term consumer goods (with a relative share of 14.7%), which, however, expect a decrease in investment programs by 13.6% and 14.1%, respectively, from 2013. According to the latest data, expenses for acquiring fixed tangible and intangible assets in industry increased by 6.3% on the year in 2013.
Source: Dnevnik (14.04.2014)

Bulgaria's Foreign Direct Investment Tumbled in Feb 2014 Foreign direct investment in Bulgaria for January - February 2014 increased by EUR 114.1M or 0.3% of GDP, according to Bulgaria's National Bank preliminary data. Foreign direct investment in Bulgaria for February 2014 increased by EUR 41.3M, compared to an increase of EUR 152.5M for February 2013 which is a drastic decline of 72.9% on an annual basis. The attracted Equity Capital for January - February 2014 amounted to EUR 42.3. It decreased by EUR 151.9M compared to that attracted in the same period of 2013 (EUR 194.2M).The receipts from real estate investments of non-residents amounted to EUR 12.3M, compared to EUR 17.5M attracted in January -February 2013. The other capital, net (the change in the net liabilities of the direct investment enterprise to the direct investor on financial loans, suppliers' credits and debt securities) was positive, amounting to EUR 47.2M in January -February 2014, compared to a positive other capital, net of EUR 2.1M in January - February 2013. Based on preliminary data on profit/loss, the Reinvested Earnings (the share of non-residents in the undistributed earnings/ loss of the enterprise) in January - February 2014 were estimated at EUR 24.6M, against EUR 27M in the same period of 2013. By country, the largest direct investments in Bulgaria in January - February 2014 were those from the Netherlands and amounted to EUR 48.7M and from British Virgin Islands (EUR 18.6M). The largest net negative flows for the period were towards France (EUR -6.5M). According to preliminary data in January 2014, Direct investment abroad increased by EUR 14.8M, compared to an increase of EUR 9.7M in January - February 2013.
Source: Capital (15.04.2014)

Deflation in Bulgaria continues for the eight month running Deflation processes in Bulgaria continued for the eight month in a row in March, driven by the administrative crack down on electricity prices and external factors. Sliding consumer prices mean smaller revenues for the state from indirect taxes like VAT. According to data published by the National Statistical Institute (NSI), consumer prices dropped by 2.3% in March y/y and by 0.2% m/m. Analysts believe that deflation pressure will be short-lived. In its latest quarterly report, released in March, UniCredit Bulbank points to one-time components behind the price decreases – such components have been the strong wheat harvest in 2013, which pushed down food prices, and the series of administrative decisions cutting electricity and heating prices for household consumers. UniCredit Bulbank also believes deflation will not be around for too long. This year it will be fuelled by untapped economic potential due to limited recovery and subdued lending.
Source: Capital (15.04.2014)

Euro Area Industrial Production Up by 0.2% in February In February 2014, seasonally adjusted industrial production rose by 0.2% in the Euro area and by 0.4% in the EU, according to estimates from Eurostat. In January industrial production remained stable in the Euro area and increased by 0.2% in the EU28. In February 2014 compared with February 2013, industrial production grew by 1.7% in the Euro area and by 2.1% in the EU, according to the statistical office of the European Union latest data. Industrial production in Bulgaria recorded a 0.7% monthly increase in February, after a 1.8% monthly growth in January, confirming the positive trends from the beginning of 2014. On an annual basis, Bulgarian industrial production increased by a total of 6.5% in February 2014, after rising by 2.5% in the first month of the year which significantly exceeds the average levels of industrial growth in the EU. The increase of 0.2% in industrial production in the Euro area in February 2014, compared with January 2014, is due to production of intermediate goods rising by 0.6% and non-durable consumer goods by 0.5%, while capital goods remained stable and durable consumer goods fell by 1.2% and energy by 1.7%. In the EU, the increase of 0.4% is due to production of non-durable consumer goods rising by 0.9%, intermediate goods by 0.5% and capital goods by 0.2%, while durable consumer goods fell by 0.7% and energy by 1.4%. The highest increases in industrial production were registered in Malta (+5.4%), Ireland (+5.0%) and Lithuania (+2.5%), and the largest decreases in Croatia (-2.8%), Estonia (-2.2%) and Romania (-1.3%). The increase of 1.7% in industrial production in the Euro area in February 2014, compared with February 2013, is due to production of intermediate goods rising by 4.2%, capital goods by 4.0% and non-durable consumer goods by 2.8%, while production of durable consumer goods fell by 0.6% and energy by 8.5%. In the EU28, the increase of 2.1% is due to production of intermediate goods rising by 4.6%, capital goods by 4.5%, non-durable consumer goods by 2.7% and durable consumer goods by 1.5%, while production of energy fell by 7.2%. The highest increases in industrial production were registered in Slovakia (+9.0%), Romania (+8.9%) and Hungary (+8.2%), and the largest decreases in the Netherlands (-8.9%), Finland (-5.4%) and Lithuania (-2.1%).
Source: Dnevnik (15.04.2014)

Price of Agricultural Land in Bulgaria Increased by 8.6% in 2013 The average price per one decar agricultural land in Bulgaria reached BGN 594 in 2013, which was 8.6% higher than in 2012, National Statistical Institute latest data reveals. In comparison with previous year, the highest increase was recorded in the price of vineyards - by 21.8%. The increase in the price of arable land was by 11.7% and in orchards - by 5.1%. Only for the permanent grass land a decrease of price by 8.8% was registered. Though there was some decline in 2013 in comparison to previous year, the highest price of agricultural land was the in Northeast region – BGN 827 per one decar. In comparison to the previous year, the highest increase in the land price per one decar was registered in the Southeast region – by 38.7%, while in the South central and Southwest region a decrease was registered - respectively by 1.9% and 35.0%. The average rent price per one decar leased agricultural land in 2013 reached BGN 38, which was by11.8% higher than in 2012. In comparison to the previous year, the highest increase was in the price of vineyards – by 61.9%. Thus, in 2013 the vineyards exceeded the price for orchards and approached the arable land price. In 2013 the highest price per one decar leased agricultural land was in Northeast region - BGN 58, which was more than three times higher than the value in Southwest region and two times higher than Southeast region. Increasing of rent payment in comparison to the previous year was observed in all statistical regions.
Source: Dnevnik (15.04.2014)

Consumer Prices In Bulgaria Continue to Drop Consumer prices in Bulgaria continue to drop in March, but at a slower rate than in February, said the National Statistics Institute (NSI). The data shows that this is an ongoing trend since August 2013. The consumer price index for March 2014 has dropped by 0.2%. The deflation since the beginning of the year is 0.8%. The deflation for March year-on-year is 2.3%. In February 2014 the deflation was 0.4% and year-on-year – 2.6%. In March, compared to the preceding month, the prices of food and soft drinks decreased by 0.3%, of clothes and shoes – by 0.7%, of transport – by 0.6%, of hotels and restaurants – by 0.1% and of entertainment and cultural events – by 1.2%. The prices of car fuel also dropped. Utility and health bills remained at the same levels as in February, while prices of alcohol and cigarettes, furniture, domestic appliances, communications and education increased by an average of 0.1% each
Source: Dnevnik (15.04.2014)

Annual Household Income in Bulgaria Increased by 11.3% in 2013 The average annual income per household member in 2013 was BGN 4,814 or 11.3% more compared to 2012, according to data of the National Statistical Institute. Wages continue to be the main source of household income representing 53.1% of the total income in 2013 compared to 52.7% in 2012, NSI's statistics on Households Income, Expenditure and Consumption in 2013 showed. Nominal household income from wages increases. In 2013 the households have had at their disposal BGN 2,557 on average per person, while in 2012 the income was BGN 2,281 which is an increase by 12.1%. The second important source of household income are pensions. Share from pensions represents 25.5% of the total annual household income per household member in 2013, compared to 26.7% in 2012. Social transfers (pensions, family allowances for children, scholarships and unemployment benefits) represent 28.5% of the total annual household income per household member in 2013, compared to 30.1% in 2012. The relative share of income from household plot within the total household income remains on the level of 2012 and is 1.6% in 2013. Bulgarian households have spent BGN 4466 per person in 2013, which is 10.1% more than in 2012. Expenditure on food is BGN 1480 on average per household member. Relative share of expenditure on food within the total expenditure decreases from 33.4% in 2012 to 33.2% in 2013. Expenditure on dwellings, water, electricity and fuels increases by 1.8% compared to 2012. Health expenses also increased by 9.9%, on transport (by 19.2%) and on communication (by 7.3%). Share of expenditure on furniture remains 3-4%. Share of expenditure on recreation, culture and education ranges between 4-5%. Expenditure on alcoholic beverages and tobacco amounts to 4.0%. Share of expenditure on clothing and shoes is 3.5% in 2013. Statistical data proves the changes in structure of consumption of the Bulgarian households. The consumption of bread and paste products decreases by 3.3 kg in 2013 to 97.8 kg average per person.The consumption of non-alcoholic beverages, fish, fruit, vegetables, meat and meat products, milk, white cheese, yellow cheese and eggs increases. Some decrease is observed in consumption of yoghurt and potatoes. Consumption of alcoholic beverages increases from 26.3 litres in 2012 to 27.2 litres on average per person in 2013. Consumption of cigarettes decreases from 601 pieces in 2012 to 596 pieces in 2013.
Source: money.bg (17.04.2014)

The budget deficit in 2017 will decrease to 0.9% The budget deficit in 2017 will decline to 0.9 %, according to medium-term forecast for the period 2015-2017, adopted at the meeting of the Cabinet. Ministers also approved an update of strategy for government debt for the period 2012-2014. The fiscal position for the period 2015-2017 was a deficit in the consolidated fiscal program (CFP), amounting to 1.5% of GDP in 2015, 1.1% in 2016 and 0.9% in 2017. Overall level of CFP revenue for the period 2015-2017 is expected to be within 37-38% of GDP as CFP costs for 2015 are 39.6% of GDP, and for 2016 and 2017 are respectively 38.3% and 37.9% in order to ensure a gradual reduction of the deficit in the medium term. The medium-term budget forecast is to present the vision of the government for funding, achievement of main objectives and implementation of the measures set out in the program “State, development, justice - economic and social priorities of the Government of the Republic of Bulgaria."
Source: econ.bg (17.04.2014)

Living costs in Bulgaria up by 2% year-on-year Property, water, electricity and fuel costs have increased by 1.8% in the last year, data of the National Institute of Statistics show. Salaries continue to be the main source of household income in the country. The average income per capita was BGN 4814 in 2013, up 11.3% y/y. Last year salaries accounted for 53.1% îf household income compared to 52.7% in 2012. Salaries increased to BGN 2557 per capita in 2013 from BGN 2281 a year earlier, or by 12.1%, the NIS reports. Pensions remain the second-biggest source of income, comprising 25.5%. This is down from 26.7% in 2012. Pensions, family allowances, scholarships and unemployment benefits comprise 28.5% îf the total annual income per capita in 2013, down from 30.1% in 2012. The average spending per capita was BGN 4 466 in 2013, up 10.1% from 2012. Of this amount BGN 1 480 was spent on food. The share of food costs decreased by 0.2% y/y, corresponding to 33.2% in 2013. Property, water, electricity and fuel costs have increased by 1.8% in the last year. Health costs have also risen (by 9.9% from 2012), as have transport costs (by 19.2%) and communications (7.3%). Expenses related to furniture remain at 3 - 4% of the total. 4% of the total was spent on alcoholic beverages and tobacco, and 3.5% of the total was spent on clothes and shoes. Bread consumption dropped by 3.3 kg per capita to 97.8 kg in 2013. Consumption of soft drinks, fish, fruit, vegetables and meat, milk, cheese and eggs increased.
Source: Standart (17.04.2014)

Bulgarian reports an increase in production in construction sector EU’s seasonally adjusted production in construction sector grew by 0.1% in February 2014 compared to January 2014, according to estimates of Eurostat. In February 2014 compared to February 2013, production in construction increased by 5.5% in the EU28 and 6.7% in the euro area. Production in construction sector in Bulgaria increased by 0.5% in February 2014 compared to February 2013. Thus, Bulgaria’s growth rate is five times faster than the average EU growth rate. In February 2014 compared to February 2013, production in construction hiked by 5.4% in Bulgaria.
Source: profit.bg (22.04.2014)

Bulgaria's Debt Was EU's Second-Lowest in 2013 The debt of Bulgaria amounted to BGN 14.733 B last year, as the latest statistics show. The account deficit in 2013 was BGN 1.178 B, or 1.5% of the country's economy, according to data by the National Statistical Institute (NSI) cited by Expert.bg and confirmed by Eurostat. NSI numbers also show that have been accumulated in the budget's Central Governance (BGN 1.42 B) and Insurance Funds (BGN 81 M) subsectors, whereas the Local Governance subsector has registered a surplus of BGN 327 M. According to the fresh data, Bulgaria ranked as the EU country with the second-lowest GDP in 2013, lagging only behind Estonia, which had a debt amounting to 10% the size of its economy. The country was also among those with lowest current account deficit. Luxemburg, on the other hand, was the only state with a budget surplus.
Source: Capital (24.04.2014)

Highest average price of properties reported in Sofia, Burgas, Varna Index of the market price of real estates in Bulgaria for the first quarter of 2014 compared to the last quarter of 2013 is 100.2, which means 0,2% average increase of the market price of the real estates, the National Statistic Institute announced. The index of market prices for the first quarter of 2014 compared to the first quarter of 2013 was 100.0, i.e. compared to the corresponding quarter of the previous year is has not changed. In the first quarter of 2014 compared to the previous quarter is reported an increase in prices in 18 regional cities, as the increase is more significant in Stara Zagora and Veliko Tarnovo - by 1.3%, Lovech - by 1.1 % and in Vratsa - 1.0%. There is decrease in prices in the other nine regional centers and Sofia. The average market price of real estate in the country for the first quarter of 2014 is 866 BGN per square meter. The highest average prices are reported in the following cities: capital Sofia –1,463 BGN per square meter, coastal Varna –1,370 BGN per square meter, coastal Burgas –1,110 BGN per square meter.
Source: Standart (24.04.2014)

Bulgarian people’s trips abroad mark 1.5%-growth Bulgarian people made some 313,400 trips abroad in March 2014, this being an increase of 1.5% in comparison with the number of trips registered in March 2013, the National Statistical Institute reported. The trips to Macedonia marked a 16.1%- growth, those to Turkey saw a growth of 11.5% and those to Greece increased by 1.1% in March 2014 when compared with data about March in 2013. Meanwhile, trips to the Russian Federation decreased by 27.9%, those to the Czech Republic declined by 16.1%, to France – by 8.7%, to the United Kingdom – by 8.4%, to Austria – 7.7%, to Romania – by 7.4%, to Serbia – by 6.9% and to Germany – by 4.8% in this year’s March compared to March of 2013.
Source: Agency Focus (28.04.2014)

Bulgaria's Business Climate Records Slight Increase in April In April the total business climate indicator in Bulgaria increased by 1.7% which is due to the improved business climate in industry, construction and retail trade. The composite indicator "business climate in industry" increased by 1.4% in comparison with March due to the more favorable industrial entrepreneurs' expectations about the business situation of the enterprises over the next 6 months, as Bulgaria's National Statistical Institute data revealed. According to the businesses, the present production activity is preserved, and in the expectations about the activity in the branch over the next months some optimism has been observed, but it is more moderate compared to the previous inquiry. The average capacity utilization in April is by 1.3% below in January level and it reaches 69.5%. The enterprises report a surplus of capacity with regard to the expected demand over the next months. The uncertain economic environment and insufficient domestic demand remain the main obstacles for the business development in the branch, pointed out respectively by 53.6% and 44.3% of the managers. Concerning the selling prices in industry the inquiry reports certain expectations for an increase over the next 3 months. In April the composite indicator "business climate in construction" increases by 6.8% which is due to the optimistic construction entrepreneurs' assessments and expectations about the business situation of the enterprises. In their opinion the present construction activity is improved, as their prognoses over the next 3 months remain favorable. The production is assured with contracts for a longer time period in comparison with 3 months earlier-5.2 months against 4.8 in January. At the same time the managers' expectations concerning the new orders over the next 6 months are improved. The main factors limiting the business development in the branch continue to be connected with the uncertain economic environment, financial problems and competition in the branch. As regards the selling prices in the construction the majority of the managers expect them to remain unchanged over the next 3 months. The composite indicator "business climate in retail trade" increases by 0.8% compared to the previous month due to the improved retailers' expectations about the business situation of the enterprises over the next 6 months. However their forecasts concerning the volume of sales and orders placed with suppliers over the next 3 months are more moderate. The uncertain economic environment, insufficient demand and competition in the branch remain the main factors limiting the activity of the enterprises. The retailers' expectations about the selling prices in the branch are for preservation of their level over the next 3 months. In April the composite indicator "business climate in service sector" decreases by 1.8% due to the more unfavorable managers' assessments about the present business situation of the enterprises. However they remain optimistic in prognoses about the development of the business, as their expectations about the demand for services over the next 3 months continue to improve. The main factor limiting the activity in the branch remains the uncertain economic environment followed by competition in the branch and insufficient demand. Concerning the selling prices the prevailing managers' expectations are for them to remain unchanged over the next 3 months.
Source: investor.bg (30.04.2014)

Bulgarian Unemployment Remained at 13.1% in March Unemployment in Bulgaria retained in March its level of 13.1%, according to latest data by Europe's statistical body Eurostat. A total of 443 000 Bulgarians were without a job in that month, 60 000 of which were under 25, as Investor.bg reports, citing the agency. Youth unemployment also kept its share, with 28.3%, which puts the country below the average level for the region and close to general EU indicators. Eurostat numbers show a certain discrepancy as compared to those by Bulgaria's Employment Agency, according to which the share of Bulgarians out of work is 12.2%. But while the Bulgarian institution bases results on the share of people registered in the Labor Bureau, Eurostat uses the number of the"economically active" for its calculations. In the EU as a whole, unemployment is currently at 10.5%, while in the Eurozone it is 10.8%. A total of 25.7 million people had no job across the bloc, with 18.9 million of them being from the euro area. In March, however, their share across Europe decreased by 66 000 compared to February. Austria (4.9%) and Germany (5.1%) still rank as the countries with the lowest number of jobless people, while Greece (26.7%) and Spain (25.3%) are the ones most troubled by lack of economic activity. Ten member states saw an increasing unemployment level in that month, while it fell down in fifteen others and remained stable in three.
Source: investor.bg (07.05.2014)

Bulgarians increase their savings Bulgarian household savings continue to increase at the end of Q1, 2014, and reached the record BGN 40.28 billion (up BGN 182 million). In Q1 of 2014, Bulgarians deposited BGN 641.8 million in banks. As of 31 March 2014, BGN 53.19% of all deposits were denominated in the local currency (BGN), 38.8% of deposits were denominated in euro and 8% - in other currencies. Growth in loans is more modest. In three months’ time gross loans (excluding credit institutions) increased by 0.6 % or BGN 337 million. The greatest increase is reported in loans to businesses - to BGN 459 million. Loans to individuals have decreased by BGN 81 million. This is due to the decrease in consumer loans and the increased amount of residential mortgage loans. During this period the assets of the banking system increased by 761 million to BGN 86.5 billion. Profit to the amount of BGN 224 million is registered towards the end of March, which is up by BGN 56 million as compared to the same period 2013. Increase of BGN 28 million is registered under interest net income. Decline in the so called bad loans – by BGN 234 million has been reported for the third quarter in a row. The so called net loans past due over 90 days decreased to 9.94 at 10.28% at the end of 2013, banks continue to maintain high capital adequacy as towards the end of March it is 20.42%.
Source: Duma (07.05.2014)

Bulgaria's Electricity Production, Deliveries Increase in February In February 2014, a monthly decrease of 22.2% is recorded for the production of solid fuels, the latest data on production and deliveries of energy products showed. Unleaded motor gasoline production dropped by 12.4% to 120 thousand tonnes, transport diesel – by 7.5% to 123 thousand tonnes, natural gas – by 18.2% to 18 million standard cubic meters, electricity – by 9.2% to 4260 Gwh, Bulgaria's National Statistical Institute informs. No change is reported for the production of liquefied petroleum gases. In February 2014 compared to February 2013 an increase is reported for the production of solid fuels – by 13.0%, electricity – by 10.5%. A decrease is reported for the production of unleaded motor gasoline – by 9.8%, transport diesel – by 21.2%, natural gas - by 18.2%. No change is reported for the production of liquefied petroleum gases. In February 2014 compared to January 2014 an increase is reported for the deliveries of unleaded motor gasoline – by 10.3% to 32 thousand tonnes, transport diesel - by 30.6% to 141 thousand tones. A decrease is reported for the deliveries of solid fuels – by 21.2% to 3066 thousand tonnes liquefied petroleum gases – by 33.3% to 22thousand tonnes, natural gas – by 16.7% to 295million standard cubic meters, electricity – by 5.5% to 3271 Gwh. In February 2014 compared to February 2013 an increase is reported for the deliveries of solid fuels – by 16.9%, transport diesel – by 54.9%, electricity – by 3.4%. A decrease is reported for the deliveries of liquefied petroleum gases – by 21.4%, unleaded motor gasoline – by 20.0%, natural gas – by 9.0%.
Source: econ.bg (07.05.2014)

Bulgarian Office Building Construction Sees 25% Increase in Q1, 2014 In Q1 2014, Bulgaria's municipal authorities have issued building permits for the construction of 1015 residential buildings, 44 office buildings and 917 other buildings. As compared to the previous quarter, the building permits for residential buildings decreased by 1.6%, their dwellings-by7.2%, while the gross building area rose by 4.8%, according to the latest data provided by the National Statistical Institute (NSI). The issued building permits for administrative buildings increased by 22.2%, but their gross building area fell by 42.8%. The number of issued building permits of other buildings decreased by 17.8% and their gross building area-by 21.3%. As compared to the first quarter of 2013, the issued building permits for new residential buildings increased by 32.9%, their dwellings-by 80.7% and the gross building area-by 69.0%. The issued building permits of administrative buildings increased by 37.5% and the other buildings-by1.6%. The gross building area of the administrative buildings increased by 38.1% and the gross building area of other buildings rose by 1.9%. In the first quarter of 2014 began the construction of 504 residential buildings, and 30 administrative buildings/offices. As compared to the previous three months, the number of new residential buildings construction decreased by 14.7%, and the new administrative buildings increased by 25.0%, but their gross building area dropped by 55.1%. As compared to the first quarter of 2013, the new residential buildings under construction increased by 26.3%, their dwellings-by 6.8% and the gross building area-by 21.9%. The number of new administrative buildings rose by 36.4%, and their gross building area-by 16.5%. An increase is observed in the other buildings under construction by 25.6% and in their gross building area-by 48.5%.
Source: money.bg (07.05.2014)

1,015 permits for residential buildings construction issued in Bulgaria in Q1 2014 In the first quarter of 2014, the municipal authorities have issued building permits for construction of 1 015 residential buildings with 3 392 dwellings and 466 109 sq. m gross building area, of 44 administrative buildings/offices with 23 510 sq. m gross building area and 917 other buildings with 466 244 sq. m gross building area, shows the data of the National Statistical Institute (NSI). As compared to the previous quarter the building permits for residential buildings decreased by 1.6%, their dwellings - by 7.2% while the gross building area rose by 4.8 %. The issued building permits of administrative buildings increased by 22.2%, but their gross building area fell by 42.8%. Number of issued building permits of other buildings decreased by 17.8% and their gross building area - by 21.3%
Source: Sega (08.05.2014)

New residential construction continues to drop Last year 2 199 residential buildings were entered into exploitation. Their number decreases by 200, as compared to a year earlier. In the meantime number of new homes that were entered into exploitation has dropped to 9 250 in 2013, as compared to 9 970 in 2012. Number of new residential buildings in Sofia-city has shrunk by almost half in a year’s time. In 201376 new residential buildings has been put into exploitation, as compare to 132 in 2012 and 174 in 2011. The trend is similar in the trend of utilized new homes in the capital city. Last year their number was 284, as compared to 634 a year earlier and nearly 1200 in 2011. As a matter of comparison in 2013 new buildings that were entered into exploitation in other regions, such as Pleven, Veliko Turnovo, Dobrich and Haskovo are more, as compared to those in the capital city. In region Varna number of new residential properties put into operation has dropped insignificantly to 427 in 2013, as compared to 443 in 2012. In region Bourgas number of newly constructed buildings has decreased by 61 to 322. Number of homes also has shrunk by less than 200 to 2732. In Plovdiv number of residential buildings put into operation has been constantly rising in the last four years, but at the expense of the number of homes there
Source: investor.bg (08.05.2014)

Bulgaria's Exports to EU Record Slight Decrease in Jan-Feb 2014 In the period January-February 2014, Bulgarian exports to the EU decreased by 0.1% compared to the corresponding period of the previous year and amounted to BGN 4B. According to the preliminary data released by the National Statistical Institute (NSI), the main trade partners of Bulgaria were Germany, Italy, Romania, Greece, France and Belgium which accounted for 71.8% of the exports to the EU Member States. In February 2014 the exports to the EU increased by 2.5% compared to the corresponding month of the previous year and amounted to BGN 2B. Bulgarian imports from the EU in the period January-February 2014 increased by 5.7% compared to the corresponding period of the previous year and added up to BGN 4.8B at CIF prices. The largest amounts were reported for the goods imported from Germany, Romania, Italy, Spain and Greece. In February 2014 Bulgarian imports from the EU Member States decreased by 0.3% compared to the corresponding month of the previous year and amounted to BGN 2.5B at CIF prices. The foreign trade balance of Bulgaria (export FOB-import CIF) with the EU in the period January–February 2014 was negative and added up to BGN 828.2M. At FOB/FOB prices (after elimination of transport and insurance costs on imports) the trade balance was also negative and amounted to BGN 605.9M. In the first two months of 2014 compared to the corresponding period of the previous year the largest growth (38.6% )in the exports of Bulgaria to the EU distributed according to the Standard International Trade Classification was recorded in the section "Animals and vegetable oils, fats and waxes". The most notable fall was recorded in sections"Mineral fuel, lubricants and related materials" (36.1%) and "Beverages and tobacco"(30.8%).In imports from the EU the largest growth (28.2%) was reported in section"Mineral fuel, lubricants and related materials"while the most notable fall (16.4%) was observed in section"Crude materials, inedible.
Source: investor.bg (10.05.2014)

Bulgaria's March industrial output rises 4.2% y/y Bulgaria's industrial output rose by 4.2% year-on-year in March, after increasing by an annual 5.9% a month earlier, preliminary data of the National Statistics Institute (NSI) indicated. On a monthly basis, industrial output decreased by 1.3% following a 0.1% decrease in February. In March 2014 decrease, as compared to the previous month is registered for extraction industry-by 2.6%, in processing industry-by 2% and in generation and distribution of electric and heating energy and gas-by 0.4%. More significant decrease in processing industry is reported for production of metal goods, without machinery and equipment-by 8.3%, production of wooden material and goods, without furniture-by 7.8%, production of pharmaceuticals-by 6.1%. On an annual basis increase is reported in extraction industry-by 6.7%, in processing industry-by 4.7% and in generation and distribution of electric and heating energy and gas-by 2.4%. Plans of industrial companies are to shrink of investment by 6.3% for the present year.
Source: investor.bg (10.05.2014)

Bulgarians spend more Bulgaria’s National Statistical Institute announced Friday volume of retail trade increased by 6% in March 2014 compared to the same period in 2013. In February and January 2014, increase in volumes by 9.3% and 7.3% respectively was reported as well. According to the statistics, Bulgarians buy mainly electronics (phones, PCs, printers, tablets, etc.). PC and tablet sales surged by 20.4% in March 2014 compared to March 2013. Pharmacies and cosmetics shops reported a 10% increase in sales yoy. However, lower consumption of Bulgarians in March 2013 might be due to the anti-government protests. In addition, good news about revival of the EU’s economy might have encouraged Bulgarians to purchase more in 2014. Bulgarian industry also surged by 4.2% compared to March 2013.
Source: Sega (10.05.2014)

In March 2014, the turnover in section “Retail trade, except of motor vehicles and motorcycles " at constant prices rose by 0.4% as compared to the previous month , according to preliminary seasonally adjusted data of the National Statistical Institute. In March 2014, the turnover in retail trade, calculated based on the working day adjusted data, has increased by 5.8% as compared to the same month of the previous year. In March 2014 the turnover increased from the previous month in retail trade via order by mail, phone or via Internet - 1.7% , in retail trade in computer and communication equipment - 1.6% and in retail trade with a variety of goods - by 0.3%. In March 2014 compared to the same month of 2013, turnover increased in almost all economic groups. The most significant increase was observed in the retail trade of computers and communication equipment - by 20.4%, in retail trade of pharmaceutical and medical goods - 8.4% and retail sales of food, beverages and tobacco products - by 5.6 %.
Source: profit.bg (10.05.2014)

EY Bulgaria: The economic growth this year will be 2.3% Exports will drive the economy this year, as growth in gross domestic product (GDP) will reach 2.3%. Thanks to exports, which increased by 7% YoY, according to the National Statistical Institute (NSI), the growth rate in 2013 was higher than the expectations of the Ministry of Finance (0.6%), reaching 0.8%. Investment and consumption, on the other hand, will not recover fast enough to positively affect the economy. This shows the prediction of the consulting company EY Bulgaria for the country's economy in 2014. The biggest question this year, it seems, will be household consumption. The expectation was that they will have more confidence in the economy and delay their purchases in 2013. However, this did not happen and the index dropped by between 1 and 3% annually during the four quarters of the year, according to the national statistics. Therefore, EY Bulgaria have reduced their expectations for growth in domestic demand this year from 3.1% to 1.4 %.
Source: Capital (12.05.2014)

Income of Hotels in Bulgaria Grows Thanks to Local Tourists The income of hotels in Bulgaria in March grew by 9.9% and reached BGN 32.9 M, year-on-year, mostly thanks to local tourists, shows data of the National Statistics Institute (NSI). The growth of income from Bulgarian tourists was 20.1%, even though they stayed in hotels of lower categories and for a shorter period, compared to foreign tourists. The overnight stays in hotels of one or two stars have increased by 20%, compared to March 2013. The overall occupancy of hotel rooms in March 2014 was 21.2%, the highest being in the preferred by foreign tourists four and five star hotels – 30.1%. Year-on-year, the overall occupancy grew by 1.2%, in spite the 4.9% increase in the number of beds. A little over 333 000 people stayed in hotels in March, of them 71.7% were Bulgarians
Source: Dnevnik (12.05.2014)

Bulgaria's Third Countries Exports Decline in Q1 2014 In Q1 2014 Bulgarian exports to third countries decreased by 16.8% compared to the corresponding period of 2013 and amounted to BGN 3.4B. Main trade partners of Bulgaria were Turkey, China, Russian Federation, Singapore, United Arab Emirates and Macedonia which accounted for 55.3% of the exports to non EU countries, Bulgaria's National Statistical Institute preliminary data for the period January-March 2014 showed. In March 2014 exports to third countries decreased by 22.2% compared to the corresponding month of the previous year and amounted to BGN 1.0B.Bulgarian imports from third countries in the first three months of 2014 decreased by 7.8% compared to the corresponding period of 2013 and added up toBGN 4.4B (at CIF prices). The largest amounts were reported for the goods imported from the Russian Federation,Turkey, China and Ukraine. In March 2014 Bulgarian imports from third countries decreased by 5.6% compared to the corresponding month of the previous year and amounted to BGN 1.4B.The foreign trade balance of Bulgaria (export FOB-import CIF)with third countries for the period January-March 2014 was negative and added up to BGN 1 031.1M. The trade balance at FOB/FOB prices (after elimination of transport and insurance costs on imports) was also negative and amounted to BGN 805.5M. In March 2014 the foreign trade balance of Bulgaria (export FOB-import CIF) with third countrieswas negative and amounted to BGN 425.6M. In the first three months of 2014 compared to the corresponding period of 2013 the largest growth in the exports of Bulgaria to third countries distributed according to the Standard International Trade Classification was recorded in the section Chemical and related products (12.0%). The most notable drop was reported in sections Mineral fuel, lubricants and relatedmaterials (38.9%) and Crude materials, inedible (except fuels) (38.4%). In imports of Bulgaria from third countries the largest growth was reported in section Beverages and tobacco (48.2%) while the most notable drop was observed in section Animals and vegetable oils,fats and waxes (27.0%). In the period January-March 2014the value of all exported goods from Bulgaria amounted to BGN 9.5B and compared to the corresponding period of 2013 the exports decreased by 6.9%. In March 2014 the total exportsof Bulgaria added up to BGN 3.2B and decreased by 8.8% compared to the corresponding month of the previous year.The total value of all the goods imported in the country in the period January-March 2014 amounted toBGN 11.7B (at CIF prices), or by 0.3% more than in the corresponding period of 2013. In March 2014 the total imports of Bulgaria increased by 1.6% compared to the corresponding month of the previous year and added up to BGN 3.9B.The total foreign trade balance was negative in the period January-March 2014 and amounted to BGN 2186.7M which wasBGN 737.3M more than the balance in the first three months of 2013. At FOB/FOB prices in the period January-March 2014 the total foreign trade balance was also negative and amounted to BGN 1614.7M. In March 2014 the total foreign trade balance (exports FOB-import CIF) was negative and added up to BGN 753.0M. The trade balance at FOB/FOB prices was also negative and amounted to BGN 560.2M.
Source: Capital (13.05.2014)

Bulgaria reports 0.3% monthly inflation Bulgaria’s consumer price index in April 2014 compared to March 2014 was 100.3%, i.e. the monthly inflation was 0.3%, shows the data of the National Statistical Institute (NSI). The inflation rate since the beginning of the year (April 2014 compared to December 2013) was -0.5% and the annual inflation in April 2014 compared to April 2013 was -1.6%. The annual average inflation, measured by CPI, in the last 12 months (May 2013 - April 2014) compared to the previous 12 months (May 2012 - April 2013) was -0.9%. In April 2014 compared to the previous month the prices of goods and services in the main consumer groups have changed as follows: • Food and non-alcoholic beverages - an increase of 0.4% • Alcoholic beverages and tobacco - a decrease of 0.1%; • Clothing and footwear - an increase of 6.1% • Housing (rentals, maintenance and repair), water, electricity, gas and other fuels - the prices remained at the level of the previous month; • Furnishings, household equipment and routine maintenance of the house - an increase of 0.1%; • Health - an increase of 0.2% • Transport - an increase of 0.8% • Communications - a decrease of 0.4%; • Recreation and culture - a decrease of 2.3%; • Education - an increase of 0.1%; • Restaurants and hotels - a decrease of 0.1%; • Miscellaneous goods and service - a decrease of 0.2%.
Source: Agency Focus (14.05.2014)

Bulgaria Q1 avg gross monthly wage falls 3.9% q/q The average gross monthly wage in Bulgaria decreased by 3.9% on a quarterly basis to BGN 796 in the three months through March, data of the National Statistics Institute (NSI) indicated on Wednesday. Year-on-year, the average gross monthly salary rose by 2.3% in the first quarter of 2014, NSI said in a statement. The business activities with the highest wages in the period under review were information and communications with BGN 1,765, electricity, gas, steam and air conditioning supply with BGN 1,533, and financial and insurance services with BGN 1,449.
Source: investor.bg (15.05.2014)

Bulgaria's GDP Records 1.1% Growth in Q1 Y/Y Bulgaria's Gross Domestic Product expanded with 1.1 % in Q1 of 2014 over the same quarter of the previous year and with 0.2 % compared to Q4 of 2013. According to the flash GDP estimates for the first quarter of 2014, the GDP at current prices amounted to BGN 15.918M. The Gross Value Added (GVA) at current prices amounted to BGN 13.586M. The services sector has the largest share (64.5 %) in total value added, followed by industrial sector (32.6 %) and agricultural sector (2.9%), according to the National Statistical Institute latest data. In the structure of GDP by the expenditure approach the largest share has the final consumption (91.1 %), which in nominal terms amounted to BGN 14.505M. In the first quarter of 2014 gross fixed capital formation is BGN 2.886M and has a share of 18.1% in GDP. According to the seasonally adjusted data, the GDP growth rate in the first quarter of 2014 has an increase of 0.2 % compared with the previous quarter. Gross value added increases in the first quarter of 2014 by 0.3%. The individual consumption increased by 1.4%, gross fixed capital formation by 0.8 % and collective consumption by 0.3%. During the first quarter of 2014 GDP increased by 1.1% compared to the same quarter of the previous year. Gross value added increased by 1.8 %. An increase is recorded in industry (3.4 %) and the services sector (1. 2%), while agricultural sector decreases its level by 0.4 %. As regards the expenditure components of GDP, the final consumption registered a positive economic growth of the individual and the collective consumption by 2.0 and 1.5 % compared to the same quarter of the previous year. Gross fixed capital formation recorded an increase by 3.2 % compared to the same quarter of the previous year. Exports and imports of goods and services increased by 0.7% and 5.1%.
Source: investor.bg (16.05.2014)

Bulgaria's banking sector faces pressure on assets quality, profitability - Raiffeisen The Bulgarian banking sector is experiencing pressure on the quality of its assets and profitability, though in 2013 it still generated sound results, Raiffeisen Research said on Thursday. Profitability was positively influenced by an increased net income from fees and commissions and lower impairment costs, while the system-wide non-performing loans ratio increased slowly to 16.9% compared to 16.6% in 2012, Raiffeisen Research said in its CEE Banking Sector Report. The net profit of the Bulgarian banking sector showed moderate growth, reaching 300 million euro ($410.1 million) in 2013, compared to 290 million euro in 2012. Total assets of the Bulgarian banking system increased by 4.0% on the year to 44 billion euro in 2013 thanks to a stable inflow of funds, mainly from private households, Raiffeisen Research noted. A moderate increase in demand for loans by corporate clients, mostly in agriculture, transport, and processing industries, resulted in a 1.4% yearly growth of the banks corporate loan portfolio to 20 billion euro while retail loans rose by less than 0.5% to 9.5 billion euro. Retail deposits surged by 9.4% on the year while corporate deposits rose by 7.5%, indicating improving confidence in the Bulgarian banking sector. The total number of banks operating in Bulgaria fell to 30 after the close-down of the Sofia branch of the Latvian Regional Investment Bank. The market share of local banks grew to 30% in 2013 from 26% a year earlier, largely because of First Investment Bank's acquisition of MKB Unionbank.
Source: Dnevnik (16.05.2014)

BG employment rate registers increase in Q1/2014 The employment rate increased by 0.4% in March compared to December last year, with which the total number of employed persons in the country reached 2.22 million, according to preliminary data of the NSI. The biggest increase was registered in agriculture, forestry and fishery (6.6%), professional activities and research (3.1%) and communications (2.9%). Conversely, the largest drop was in administration and water supply - 6.9% and 3.4% respectively. The average salary before taxes in January was BGN 794. It was 780 in February and 813 in March. The average salary in this trimester is down by 3.9% from the previous one, dropping to 796. The sectors that registered the largest reduction of the average monthly salary are: Real Estate - by 17.6 %, Education - 14.2% and Trade, repair of motor vehicles and motorcycles - 7.6%.
Source: Standart (16.05.2014)

Bulgaria's New Car Market Posts 25% Increase Over Four Months In April 2014, demand for new passenger cars in the EU increased for the 8th consecutive month, with a rise of 4.6% in registrations. In April 2014, new passenger car registrations increased by 7.4%, totaling 4,336,013 units, according to the European Automobile Manufacturers Association (ACEA). In April 2014, Germany was the only major market to face a downturn (-3.6%). All other significant markets contributed positively to the overall 4.6% expansion of the EU market, with growth ranging from 1.9% in Italy, 5.8% in France, 8.2% in the UK to 28.7% in Spain. From January to April, all major markets posted growth, contributing to the overall 7.4% upturn of the EU market. The increase in passenger car registrations in this period ranged from 2.9% in Germany, 3.7% in France, 5.0% in Italy to 12.5% in the UK and 16.2% in Spain. According to the survey of ACEA, new car sales in Bulgaria have registered an increase of 13.9% in April yoy to 1,632 units. For the first four months of 2014, the registration of new cars in Bulgaria increased by 25.2% to 6478 units. According to this indicator Bulgaria ranked fifth among all 28 countries, and was surpassed only by Portugal with an increase of 43.7%, Lithuania (27.7%), Ireland (26.6%) and Poland (26%).
Source: expert.bg (19.05.2014)

BG unemployment shows gradual decline The unemployment rate continues to drop in the country, falling to 11.6% in April, reported National Labor Office chief Asen Angelov. Over 30 000 people found work in April, while the number of unemployed dropped by 14 000 compared to the beginning of the year. 9 000 people under 29 were registered at labor bureaus nationwide. People over 55 are at higher risk, Mr. Angelov pointed out. 38% of all unemployed persons in Bulgaria are over 50 according to labor bureau data. The government aims to encourage youth employment through a program that will affect around 7500 young people. Initially it will be funded via the state budget and after that via the Human Resource Development OP. It will target both university graduates and high school graduates.
Source: investor.bg (20.05.2014)

Bulgaria's producer price index (PPI) edged down 0.3% on the month in March after falling by 0.1% in February, preliminary data of the National Statistics Institute (NSI) indicated on Wednesday. Year-on-year, producer prices were 2.8% lower in March, following a 3.3% decrease in February. Inflation of 0.3%, which statistics reported for the first time in three months now, obviously does not help the local industry. Inflation is imported and does not reflect the strengthening of the Bulgarian production and rising import prices. On a monthly basis the decline in April was 0.2% below March this year. Prices decrease in the mining industry - by 2.8 % and in the production and distribution of electricity, heat and gas - by 0.8% while manufacturing prices rose - by 0.3%.
Source: Standart (31.05.2014)

Eurostat: Bulgaria’s jobless rate with slight drop According to Eurostat estimates, seasonally adjusted unemployment rates in Bulgaria decreased. Unemployment stood at 12.8% in April 2014, down 0.2% compared to March 2014. Eurostat provides data by gender as well. Unemployment among men is 13.7%, while 11.8% of Bulgarian women are unemployed. EU unemployment rates also decreased. Apart from Bulgaria, 18 other countries reported reduction of unemployment rates. Among the EU28, the lowest unemployment rates were recorded in Austria (4.9%), Germany (5.1%) and Luxembourg (6.1%), and the highest in Greece (26.7% in January 2014) and Spain (25.3%). Youth unemployment in Bulgaria decreased to 27.2% in April as well.
Source: Sega (04.06.2014)

Bulgarian GDP up 1.2% y/y The National Statistical Institute (NSI) has revised its estimates for the gross domestic product (GDP) growth in the first quarter of 2014. Data show that from January to March this year the GDP grew by 1.2%. Earlier data showed an increase of 1.1 percent. The GDP in the period was BGN 16.097 billion or EUR 8.23 billion, coming to EUR 1136 (BGN 2222) per capita. The Bulgarian economy registered growth of 0.1 percentage points on a quarterly basis. The increase in the GDP in the first quarter of this year was 0.3% compared to the last quarter of last year. The gross added value at the end of March 2014 was BGN 13.77 billion. The share of the agricultural sector dropped by 0.9 percentage points to 2.9 percent, while the share of the industrial sector declined by 0.2 percentage points to 32.7% of the total gross added value. The service sector accounts for 64.4% compared to 63.3 percent a year ago.
Source: Standart (05.06.2014)

Bulgaria's exports to China jump by 20% Bulgarian exports to China showed a growth of 20% in the past few months, Bulgarian Economy Minister Dragomir Stoynev stated while visiting the BG stand at the13th exhibition of goods from Central and Eastern Europe (CEE) in the city of Ningbo, China. Over 20 Bulgarian companies operating in the production of wines, cosmetics, electronics and food present their products at the exhibition, thanks to the free exhibition area provided by the hosts. Minister Stoynev was selected to represent the 16 CEE countries at the event and also had a meeting with Deputy Prime Minister of China Mr. Yang Jiechi. "We will focus our efforts to increase foreign trade and investment between China and the countries of Central and Eastern Europe," said Minister Stoynev in a statement. In his words, the access of European products to the strategic Chinese market should be facilitated. On behalf of the 16 CEE countries Dragomir Stoynev announced as a priority increasing tourist numbers from China. CEE countries will also exchange experiences with their Chinese counterparts in the sphere of education, science and culture, added Stoynev. For his part, the Chinese Deputy Yang stressed that the opportunities for increased investment and tourist flows between Bulgaria and China are excellent.
Source: Standart (09.06.2014)

Bulgaria's April industrial output rises 5.0% y/y Bulgaria's industrial output rose by 5.0% year-on-year in April, after increasing by an annual 4.2% a month earlier, preliminary data of the National Statistics Institute (NSI) indicated on Monday. On a monthly basis, industrial output rose by 1.4% over the month, following a 1.3% drop in March, NSI data indicated.
Source: Standart (10.06.2014)

Bulgaria’s export to EU up 0.1%, while to 3rd countries – down 18.4% In the period January - March 2014 Bulgarian exports to the EU has increased by 0.1% compared to the corresponding period of the previous year and amounts to BGN 6.2 billion, shows the latest data of Bulgaria’s National Statistical Institute (NSI) Main trade partners of Bulgaria were Germany, Italy, Romania, Greece, France and Belgium which accounted for 72.5% of the exports to the EU Member States. In March 2014 the exports to the EU increased by 0.1% compared to the corresponding month of the previous year and amounted to BGN 2.2 billion. Bulgarian imports from the EU in the period January - March 2014 increased by 6.1% compared to the corresponding period of the previous year and added up to BGN 7.3 billion at CIF prices. The largest amounts were reported for the goods imported from Germany, Romania, Italy, Greece and Spain. In March 2014 Bulgarian imports from the EU Member States increased by 6.7% compared to the corresponding month of the previous year and mounted to BGN 2.5 billion at CIF prices. Meanwhile, in the period January - April 2014 Bulgarian exports to third countries decreased by 18.4% compared to the corresponding period of 2013 and amounted to BGN 4.7 billion.
Source: Standart (10.06.2014)

Online Purchases Post Highest Growth in April The online purchases in Bulgaria posted highest growth in April, year-on-year, shows data of the National Statistics Institute data on retail. The goods ordered “by mail, telephone or internet” grew by 18%, compared to April 2013. Most significant sales were posted by “computers, telephones, etc.” - 14.1% growth, followed by medical goods and medicines – by 4.3%. Overall retail in April 2014, compared to March, decreased by 0.2%. On yearly basis, however, it increased by 2.4%.
Source: Standart (10.06.2014)

Bulgaria's Construction Production Shrinks By 2% in April Y/Y In April 2014, Bulgaria's production in construction, calculated on the base of seasonally adjusted data, was 1.3% below the level of the previous month. In April 2014 working day adjusted data showed a decrease by 2.0% in the construction production, compared to the same month of 2013, according to the preliminary data by the National Statistical Institute. In April 2014 the construction production, calculated from the seasonally adjusted data, was below the level of the previous month. Index of production of building construction decreased by 1.7%, and the production of civil engineering-by 0.9%. On an annual basis in April 2014, the decrease of production in construction, calculated from working day adjusted data, was determined mainly from the negative rate in the building construction by 9.0%, while in the civil engineering was registered an increase by 7.8%.
Source: Darik Radio (10.06.2014)

Bulgaria's EU Imports Record 6.1% Increase in Q1 2014 In the period January-March 2014 Bulgarian exports to the EU increased by 0.1% compared to the corresponding period of the previous year and amounted to BGN 6.2B. Main trade partners of Bulgaria were Germany, Italy, Romania, Greece, France and Belgium which accounted for 72.5% of the exports to the EU Member States, according to Bulgaria's National Statistical Institute preliminary data. In March 2014 the exports to the EU increased by 0.1% compared to the corresponding month of the previous year and amounted to BGN 2.2B. Bulgarian imports from the EU in the period January-March 2014 increased by 6.1% compared to the corresponding period of the previous year and added up to BGN 7.3B at CIF prices. The largest amounts were reported for the goods imported from Germany, Romania, Italy, Greece and Spain. In March 2014 Bulgarian imports from the EU Member States increased by 6.7% compared to the corresponding month of the previous year and amounted to BGN 2.5B at CIF prices. The foreign trade balance of Bulgaria (export FOB-import CIF) with the EU in the period January – March 2014 was negative and added up to BGN 1 141.7M. At FOB/FOB prices, i.e. after elimination of transport and insurance costs on imports, the trade balance was also negative and amounted to BGN 809.2M. In the first three months of 2014 compared to the corresponding period of the previous year the largest growth (49.2%) in the exports of Bulgaria to the EU distributed according to the Standard International Trade Classification was recorded in the section Animals and vegetable oils, fats and waxes. The most notable fall was recorded in sections Mineral fuel, lubricants and related materials (35.6%) and Crude materials, inedible (except fuels) - 23.8%. In imports from the EU the largest growth of 20.4% was reported in section Animals and vegetable oils, fats and waxes while the most notable fall of 14.4% was observed in section Crude materials, inedible (except fuels).
Source: econ.bg (10.06.2014)

Deposits in Bulgaria Generate Highest Revenue in 6 Years Revenues arising from bank deposits have recorded the highest rates in 6 years, according to data by Bulgaria's National Bank and the National Statistical Institute. For the last year, every BGN 100 on deposit has generated a revenue of BGN 5.50, nearly two-thirds of it coming from the interest and the rest is due to the negative inflation rates, Bulgarian 24 Chasa infroms. According to the Statistical Institute data, the Consumer Price Index (CPI) for April 2014 was -1.6% on an annual basis. The average interest rate on deposits for the same period was 3.63% in EUR and 4.1% in BGN. Therefore, consumers saving in BGN have made higher profit.
Source: Darik Radio (11.06.2014)

NSI announces 2% annual deflation rate in Bulgaria Data of the NSI show deflation of 0.5% in May compared to April and 2% y/y. The deflation rate was up by 1% in May from December 2013. The deflation rate was 1.2% y/y on average since June 2012. This means consumer prices have decreased for the tenth month in a row (since August last year). Economists explain there are many reasons for this, including a drop in wholesale prices of basic raw materials and a drop in consumption itself. The government attributes budget revenue deficits to deflation, while finance minister Petar Chobanov expressed hope that the higher inflation rate would improve the situation with insufficient revenue. The NSI reports that food products dropped by 1% in May from April 2014, clothing items and shoes increased by 1%, health costs increased by 0.1%, communication services dropped by 1.9%, etc.
Source: Standart (13.06.2014)

Bulgarian Businesses Report Higher Labor Costs in Q1 2014 The total hourly labor cost has risen by 3.6% in Q1 2014 compared to the same period of 2013, according to the preliminary data of Bulgaria's National Statistical Institute. The total hourly labor cost grew by 5.1% in industry, by 1.3% in services and by 4.4% in construction, the NSI reports. The breakdown by economic activities showed that the highest annual growths in total labor costs were recorded in the sectors of Water supply, sewerage, waste management and remediation activities - 10.6%, Administrative and support service activities – 9.1%, and Mining and quarrying – 8%. A decrease in total labor costs was observed in real estate activities by 16.4% and in professional, scientific and technical activities by 4.3%. In the structure of the total labor costs, the wages and salaries costs per hour worked have grown by 2.9% in comparison with a year earlier, while the other (non-wage) costs rose by 7.5%. Among the economic activities in the first quarter of 2014 compared to the first quarter of 2013 the growth rate of wages and salaries component ranged from -17.7% in real estate activities to 9.4% in water supply, sewerage, waste management and remediation activities.
Source: Darik Radio (19.06.2014)

Unemployment Falls to 11.2% in May, Bulgarian Employment Agency Bulgaria's National Employment Agency has registered an 11.2% unemployment rate in May, which is 0.6% lower than the April figure. This is the second consecutive month when the rate falls, after it stood at 12.2% during the January – March period, Investor.bg reported. However, compared to the same time last year, it is 0.2% higher. There were 367,499 people registered in the labor bureaus in May, which is 19,126 less than in April. The newly registered unemployed have also fallen by 11,828. There is a 25.9% increase in the number of young people who have applied in the bureaus, but this is attributed to the increased informational campaigns about youth employment programs and EU initiatives. The biggest job openings have come in the manufacturing and trade sectors, while hotels and restaurants are naturally approaching their peak season, which brings about increased demand for staff. Construction businesses, meanwhile, have opened the least amount of new vacancies.
Source: Darik Radio (19.06.2014)

Bulgaria Records Lowest Price Levels in EU The lowest price levels in the European Union for 2013 for consumer goods and services were found in Bulgaria - 48% of the EU average, according to Eurostat latest data. In 2013, price levels for consumer goods and services differed widely across Member States, the European statistical institute reported. Denmark (140% of the EU average) had the highest price level, followed by Sweden (130%), Luxembourg and Finland (both123%). Price levels at around 30% to 35% below the average were observed in the Czech Republic, Latvia and Slovakia (all 71%), Croatia (68%) and Lithuania (65%). Price levels for food and non-alcoholic beverages in 2013 ranged from 62% of the EU average in Poland to 140% of the average in Denmark. Differences in price levels between Member States were less pronounced for this product group than for the total of goods and services. For alcoholic beverages and tobacco, prices were lowest in Bulgaria (59% of the average) and highest in Ireland (178%). This large price variation is mainly due to differences in taxation of these products among Member States.
Source: Standart (20.06.2014)

Industry prices increased Prices in industry grew by 0.3% in May from the previous month, according to NSI. Higher prices were registered in mining - 2.1% and in manufacturing - by 0.3%, while the prices in production and supply of electricity, heating and gas fell by 0.1%. Compared to the same month last year, producer prices in industry are lower by 0.9%. In the mining industry prices fell for by 10.8% YoY. In manufacturing, the prices fell on an annual basis by 0.2%.
Source: Standart (01.07.2014)

Turnover in Internet Retail Sale Increases by 18.9% in May In May 2014 the turnover in retail trade decreased by 0.1% compared to the previous month, the latest data released by Bulgaria's National Statistical Institute showed. In May 2014 the working day adjusted turnover in retail trade, except for motor vehicles and motorcycles grew by 1.3% in comparison with the same month of the previous year, according to NSI's preliminary seasonally adjusted data. In May 2014 compared to the previous month the turnover increased in the retail sale of food, beverages and tobacco and in the retail sale in non-specialized stores by 0.5%, in the retail sale via mail order houses or via Internet by 0.4%, in the dispensing chemist; retail sale of medical and orthopaedic goods, cosmetic and toilet articles’ by 0.3% and in the retail sale of textiles, clothing, footwear and leather goods – by 0.1%. A decrease was registered in the retail sale of computers, peripheral units and software; telecommunications equipment – 1.3%, in the retail sale of automotive fuel – 1.1% and in the retail sale of audio and video equipment and electrical household appliances – 0.2%.
Source: Duma (09.07.2014)

Industrial production in Bulgaria up 4.9% in May Bulgaria’s Industrial Production Index was up 4.9% in May y/y, according to preliminary data of the National Statistical Institute (NSI). The index slipped 0.7% m/m. Processing and extractive industries posted declines on monthly basis, down 1.8% and 0.8% respectively, while production of electricity, heating and gas edged up by 0.1%. On annualized basis, the nation’s extractive industry advanced by 10.5%, followed by the production of electricity, heating and gas (7.4%) and process manufacturing (2.8%).
Source: Standart (09.07.2014)

Bulgaria’s jobless rate falls to 10.7% in June Bulgaria’s unemployment rate fell to 10.7% in June, down by 0.5 percentage points from a month earlier, the country’s Employment Agency said. A total of 351,252 unemployed were registered with the agency’s offices at the end of last month, down by 336 compared to the previous month, the agency said in a statement. The number of people who found a job in June totalled 25,040, which is 2,586 less than a month earlier and 3,652 more than in June 2013. Bulgaria, which joined the European Union in 2007, has a population of 7.3 million.
Source: Standart (09.07.2014)

Bulgaria’s export to EU down 0.9% y/y Bulgaria's export volume to the European Union dropped by 0.9% y/y between January and April 2014 to BGN 8.3 billion. Imports increased by 4.6% to BGN 9.9 billion, data of the National Institute of Statistics show. In April 2014 Bulgaria's export to the EU dropped by 3.5% (y/y) to BGN 2.1 billion, while import has increased by 0.6% to BGN 2.6 billion. Bulgaria's main trade partners in the first trimester of the year were Germany, Italy, Romania, Greece, France and Belgium, accounting for 72.3% of Bulgarian exports to EU member states. At the same time the highest import volume is registered from Germany, Italy, Romania, Spain and Greece. The foreign trade balance of Bulgaria to the European Union in January - April 2014 was negative – BGN 1.6668 billion compared to the negative trade balance of 1.1586 million y/y. The National Institute of Statistics also presented data for April, according to which Bulgaria's trade deficit with the EU increased by BGN 525.1 million compared to 432.2 million one year ago. Bulgaria's export to third countries dropped by 18.4% y/y to 4.6557 billion compared to export at 5.7059 billion y/y. Import from third countries dropped by 6.8% to BGN 6.0718 billion.
Source: Standart (10.07.2014)

Bulgaria's Exports to Third Countries Drop by 14.8% in Jan-May In January-May 2014 Bulgarian exports to third countries decreased by 14.8% compared to the same period of 2013 and amounted to BGN 6.1 bln. Main trade partners of Bulgaria were Turkey, China, Singapore, the Russian Federation, Macedonia and the United Arab Emirates which accounted for 54.4% of the exports to non EU countries, according to the preliminary data released by the National Statistical Institute. In May 2014 exports to third countries decreased by 0.6% compared to the corresponding month of the previous year and amounted to BGN 1.4 bln. Bulgarian imports from third countries in the first five months of 2014 decreased by 5.2% compared to the corresponding period of 2013 and added up to BGN 7.8 bln (at CIF prices).The largest amounts were reported for the goods imported from the Russian Federation, Turkey, China and Ukraine. In May 2014 Bulgarian imports from third countries increased by 0.5% compared to the corresponding month of the previous year and amounted to BGN 1.8 bln.
Source: Dnevnik (11.07.2014)

World Bank Forecasts 1.7% Growth for BG Economy The World Bank forecast 1.7% growth for Bulgaria's economy in 2014, in its EU 11 regular report released on Friday. It, however, did not take into account the controversies around the bankruptcy of the Corporate Commercial Bank (KTB) and the expected by Finance Minister Petar Chobanov growth of the state deficit over the 3% threshold. According to the World Bank forecast, Bulgaria's growth was expected to reach 1.7% in 2014 and 2.4% in 2015. The report, which encompasses the 11 EU members, who joined the Union in 2004 and later, forecasts the overall growth of those countries to strengthen from 1.4% in 2013 to 2.6 percent in 2014. The initial reliance on net export growth, with rising demand from the rest of the EU, is gradually giving way to more balanced growth as domestic demand picks up. According to the report, Bulgaria will still lag behind the average for the EU 11 group, with only Slovenia and Croatia having worse outlook. The three main threats to Bulgaria's economic growth, identified by the World Bank report, are the ageing population, youth unemployment and lack of skilled workers. According to the report, the country is among the leaders in share of young adults who neither work, nor study, nor acquire any qualifications.
Source: Dnevnik (14.07.2014)

The prices of goods and services dropped by 0.4% in June, data of the National Institute of Statistics show. This comprises deflation of 1.9% y/y. The biggest drop was in the prices of cabbage (16.2%), cucumbers (13.1%), potatoes (12.7%), sugar (4.8%) and eggs (2.1%). An increase was observed in the prices of apples (4.8%), citrus fruit (4.1%), rice (1.5%) and soft drinks (1.8%). There was also a drop in the prices of fuel – gas and liquid fuel (1.2 and 0.2%), second-hand cars (1.2%) and diesel fuel and propane butane (0.8% and 3.4%). The prices of vacation and travel services have increased by 10.3% and by 3.9% for short-term accommodation services. In June 2014 the prices of medication and pharmaceuticals dropped by 0.4%, while dentist and medical services did not change. Neither did the prices of education and rent, as well as maintenance.
Source: Standart (16.07.2014)

Since the beginning of the year beer sales in Bulgaria dropped by 6%, said the Bulgarian Brewers Union at a news conference. This, according to the chairperson of the Union Ivana Vladimirova, is mostly due to the inclement weather (beer is considered a mostly summer drink in Bulgaria and is usually drank when the weather is hot) and financial worries of the households. At the same time, the average Bulgarian needs to work 45 minutes to buy a litre of beer, even though it was recently reported that Bulgaria is in the top 10 of cheapest beers in the world. For comparison, the average German works seven minutes for a litre of beer and the average Romanian – 24 minutes. Most preferred in 2013 was the beer in two-litre PVC bottles. It accounted for 60% of beer sales. Glass bottles come second with 25%, followed by cans – 10% and draught beer – 5%. The Brewers Union data shows, that the average beer consumption of beer in Bulgaria in 2013 was 74 litres per person. Bulgaria lags far behind the leaders Austria (108 litres) and Germany (107 litres). - See more at: http://www.novinite.com/articles/162069/Beer+Sales+in+Bulgaria+Are+Dropping#sthash.OUghKvml.dpuf
Source: profit.bg (18.07.2014)

Managers in refineries with the highest salaries Managers in the manufacture of coke and refining of petroleum products are provided the highest salaries. About 200 heads in the industry pay social and health insurance contributions on average of BGN 2,308, which is the highest average insurance income for all economic activities and professions. This shows statistics for January-April 2014. Second highest salaries are received by the managers in the mining of metal ores, who are paid on average BGN 2,124 wage. Similar wage were declared by the managers in the beer industry, energy and metal production.
Source: Trud (21.07.2014)

The share of government debt to GDP has increased in the EU and the euro area in the first quarter Bulgaria is among the three countries with the lowest share, but accounted for more than the EU average increase in government debt as compared to the previous period and the same period of 2013. At the end of the first quarter of 2014 the ratio of government debt to GDP in the EU is 87.2%, compared to 88% in the fourth quarter of 2013. For the euro area rates were respectively 93.9% and 92.7%. The increase in the euro zone comes after two consecutive quarters of decline. The attitude of government debt to GDP from the first quarter of 2013 has also risen in the EU (from 86.2% to 88%) and the euro area (from 92.5% to 93.9%). In the first quarter of 2014, securities other than shares are 80.9 percent of government debt in the EU and 79.3% from the euro area. Loans are respectively 15.4% and 17.9% for the EU and the euro area, and currency and deposits represent 3.7% and 2.8% of the debt. The share of intergovernmental lending of GDP was 2.4% in the euro area and 1.8% in the EU-28. The highest share of government debt to GDP in the first quarter were recorded in Greece (174.1%), Italy (135.6%) and Portugal (132.9%) and the lowest - in Estonia (10.0%), Bulgaria (20.3% ) and Luxembourg (22.8%).
Source: Standart (23.07.2014)

Bulgaria property prices again on the rise Bulgaria property prices are up by 0.3% y/y, data of the National Statistical Institute show. Prices of real estate in 13 cities rose in the second trimester of 2014 – by 1.8% in Bourgas, Silistra and Shumen, 1.3% in Plovdiv and 1.1% in Stara Zagora. Prices dropped in another 14 cities, including Sofia. The average price per sq. m is BGN 869.29. It was 864.52 in the last trimester of 2013. Sofia real estate is still the most expensive, coming to BGN 1 473.67 per sq. m. Varna comes second with 1 366.50 and Bourgas is third with 1 130.67. The cheapest properties are in Kyustendil - 491.59, Vidin - 514.39 and Gabrovo - 517.83 per sq. m.
Source: Standart (24.07.2014)

Only eight percent of companies survive Nearly 45% of the companies in Bulgaria do not have any hired workers. At the same time, only 8% of the new registered companies survive more than five years, according to NSI. Apparently many people are trying to do their own business, but few manage to stay on the market. In 2012 in Bulgaria there were 323,745 active companies, which is 1.2% more than in 2011. The largest share is of companies with 0 employees - 44.6%. In the group "1-4 employees" are 39.7% of the companies. The smallest number of firms is with "5-9 employees" - an average of 8% for the period 2008-2012, while with "10 or more employees" for the 5-year period are 9% of the enterprises. 70.8% of all employees work in the group"10 or more". During the 5-year period, each year were launched on average 14.1% of active enterprises. The greatest number of newborn companies has no hired workforce.
Source: Standart (29.07.2014)

Producer prices in industry retain their level in June The producer price index (PPI) of the Bulgarian industry in June kept its level from the previous month, and decreased by 0.5% over the past 12 months, according to data of the National Statistical Institute (NSI). In May, the index rose for the first time since August. On a monthly basis prices decreased in the mining industry – by 1.9%, and the production and distribution of electricity, heat and gas - by 0.1%, while manufacturing prices rose by 0.2%. On an annual basis prices fell in the mining industry – by 6%, and the production and distribution of electricity, heat and gas - by 1.2%, while manufacturing prices rose - by 0.3%. The index of producer prices is an early indicator of the direction of movement of a particular sector or the overall economy. As short-term business indicator, it could provide guidance on trends in consumer inflation.
Source: investor.bg (31.07.2014)

Consumer Confidence Falls in July - NSI Bulgaria’s consumer confidence index dropped last month compared to its level three months earlier, the statistics office said on Wednesday. The consumer confidence indicator was 4.3 percentage points lower in July compared to April, the National Statistical Institute (NSI) said in a statement. The fall was due to diminished confidence of both urban and rural population, by 3.9 and 5.1 percentage points, respectively The assessment of the general economic situation over the past 12 months has worsened by 9.0 percentage points in July compared to April, while the expectations about the next 12 months were 6.1 percentage points lower. “Compared to April, the consumers’ assessments and expectations about the financial situation of their households are more unfavourable,” the NSI said. The July survey has also recorded a rise in the number of those who expect Bulgaria’s inflation and unemployment to increase over the next 12 months. Bulgaria's unemployment rate was 13% in the first quarter of 2014,down 0.8 percentage points from a year earlier. Monthly inflation for June was negative at -0.4%. Year-on-year, June inflation was also negative at -1.9%.
Source: econ.bg (06.08.2014)

Bulgaria industry production down 1.3% The Industrial Production Index decreased by 1.3% in June 2014 y/y, the preliminary data of the National Statistical Institute show. The Industrial Production Index decreased in the mining and quarrying industry by 3.0% and in the manufacturing by 0.5%. There was an increase of 0.1% in electricity, gas, steam and air conditioning supply. The most significant drops in manufacturing were registered in tobacco products by 14.9%, in the printing and reproduction of recorded media by 6.9%, other non-metallic mineral products by 6.6% and transport equipment by 5.9%. The more significant increases y/y were seen in the manufacture of motor vehicles, trailers and semi-trailers by 24.3%, computer, electronic and optical products by 20.1%, in the manufacture of rubber and plastic products by 19.1%, in the manufacture of basic metals by 17.1%, in the repair and installation of machinery and equipment by 12.6%.
Source: Standart (11.08.2014)

Bulgaria Q2 avg gross monthly wage rises 2.6% q/q The average gross monthly wage in Bulgaria increased by 2.6% on a quarterly basis to 817 levs ($559/418 euro) in the three months through June, data of the National Statistics Institute (NSI) indicated on Friday. Year-on-year, the average gross monthly salary rose by 2.3% in the second quarter of 2014, NSI said in a statement. The business activities with the highest wages in the period under review were information and communications with 1,767 levs, electricity, gas, steam and air conditioning supply with 1,596 levs, and financial and insurance services with 1,585 levs.
Source: econ.bg (11.08.2014)

Bulgaria's Construction Production Sees 5.6% Increase Y/Y In June, the index of production in the construction sector, calculated on the base of seasonally adjusted data, was 0.1% above the level of the previous month. According to the preliminary data of the National Statistical Institute, in June 2014 there was an increase by 5.6% in the construction production, compared to the same month of 2013. In June 2014 the construction production, calculated from the seasonally adjusted data, was above the level of the previous month. The index of production of civil engineering increased by 0.7%, while the production of building construction marked a decrease by 0.4%. On an annual basis in June 2014, the increase of production in construction, calculated from working day adjusted data, was determined mainly from the positive rate in the civil engineering by 14.4%, while in the building construction was registered a decrease by 1.0%.
Source: econ.bg (11.08.2014)

Bulgaria's Industrial Production Down by 1.3% in Junå The Seasonally adjusted Industrial Production Index decreased by 1.3% in June 2014 as compared to May 2014, the preliminary data of the National Statistical Institute shows. In June 2014 working day adjusted Industrial Production Index rose by 0.6% in comparison with the same month of 2013. In June 2014 as compared to May 2014, the seasonally adjusted Industrial Production Index decreased in the mining and quarrying industry by 3.0% and in the manufacturing by 0.5%, while in the electricity, gas, steam and air conditioning supply an increase by 0.1% was seen. The most significant decreases of production in the manufacturing were registered in the manufacture of tobacco products by 14.9%, in the printing and reproduction of recorded media by 6.9%, in the manufacture of other non-metallic mineral products by 6.6%, in the manufacture of other transport equipment by 5.9%. There was an increase in the manufacture of fabricated metal products, except machinery and equipment by 6.7%, in the manufacture of motor vehicles, trailers and semi-trailers by 4.1%, in the repair and installation of machinery and equipment and in the manufacture of leather and related products by 2.9%. On annual basis in June 2014 Industrial Production Index, calculated from working day adjusted data increased in the manufacturing by 1.8%, while the production decreased in the electricity, gas, steam and air conditioning supply by 4.1% and in the mining and quarrying industry by 1.4%. In manufacturing, the more significant increases compared to the same month of the previous year were seen in the manufacture of motor vehicles, trailers and semi-trailers by 24.3%, in the manufacture of computer, electronic and optical products by 20.1%, in the manufacture of rubber and plastic products by 19.1%, in the manufacture of basic metals by 17.1%, in the repair and installation of machinery and equipment by 12.6%. Decreases were registered in the manufacture of tobacco products by 25.1%, in the manufacture of beverages by 9.9%, in the manufacture of food products by 5.9%.
Source: Dnevnik (11.08.2014)

Bulgaria export to EU slightly up Y/Y, with Germany as main trade partner Bulgarian export to EU countries increased by 1.2% in the first five months of 2014 year-on-year, NSI data show. The total export value was BGN 10.3 billion in the first five months of this year. Our main trade partner is Germany. Export to Europe's biggest economy is just over BGN 2 billion, down 5% y/y. Other key partners include Italy, Romania, Greece, France and Belgium. These countries account for 72.4% of our export to the EU. Export to Malta rose by 51.8% to BGN 24.9 million and by 51.2% tî BGN 667 million to Belgium. Export to Portugal dropped by 51.3% to 59.6 million. In May export to the other 27 member states increased by 10.1% y/y, reaching 2.1 billion. Import from the EU also increased – by 3.5% to 12.3 billion. Germany is again our main partner. Import from Germany increased by 10.1% to 2.3 billion. In May import values dropped by 0.9% y/y to 2.4 billion. The foreign trade balance is negative, amounting to BGN 1.9 billion. The deficit totals 1.39 billion excluding transport and insurance expenses. Export to third countries is still dropping, but at a slower rate. It totalled 7.5 billion in H1, which is a drop of 12.1% y/y. Our main trade partners outside the EU are Turkey, Singapore, China, Russia, Macedonia and Serbia. Export to these countries accounts for 54.9% îf the total. Export to Turkey totalled 1.9 billion in H1. Export to Singapore rose from 8.9 million in H1/2013 to the impressive 538.7 million in H1/2014. This puts Singapore ahead of China and Russia.
Source: Standart (12.08.2014)

Bulgaria's Monthly Inflation Rates at 0.4% in July The consumer price index in July 2014 compared to June 2014 was 100.4%, i.e. the monthly inflation was 0.4%, Bulgaria’s Statistical Institute latest data indicates. The inflation rate since the beginning of the year (July 2014 compared to December 2013) has been-1.0% and the annual inflation in July 2014 compared to July 2013 was - 1.0%. The annual average inflation, measured by CPI, in the last 12 months compared to the previous 12 months was-1.7%. In July 2014 compared to the previous month the prices of goods and services in the main consumer groups changed for food and non-alcoholic beverages-an increase of 0.4%, alcoholic beverages and tobacco-an increase of 0.1%, clothing and footwear-a decrease of 1.6%, housing, water, electricity, gas and other fuels-an increase of 0.8%. The harmonized index of consumer prices in July 2014 compared to June 2014 was 100.6%, i.e. the monthly inflation was 0.6%. The inflation rate since the beginning of the year has been -1.1% and the annual inflation in July 2014 compared to July 2013 was -1.1%. The annual average inflation, measured by HICP, in the last 12 months compared to the previous 12 months was -1.4%.
Source: Standart (13.08.2014)

Unemployment rate in Bulgaria registers steady decline The unemployment rate in the country is down for the sixth month in a row. This July it is 10.6%, down by 0.1% compared to June and by 0.2% y/y. There are 54 000 less unemployed persons now than there were at the beginning of the year. 347 249 are registered at labor offices nationwide, which is 4 003 less than in June. This is the biggest decline since 2007. The number of unemployed persons under 24 is 25 924 or 7.5% îf the total. 16.8% of all unemployed persons are under 29. 16 571 people started work in July this year.
Source: Standart (13.08.2014)

Bulgaria’s gross domestic product (GDP) expanded by 1.6% on the year in the three months through June and edged up 0.5% on the quarter, a flash estimate released by the country's statistics office, NSI indicated on Thursday. The second-quarter GDP totalled BGN19.21 billion (USD 13.1 billion/ EUR 9.8 billion) at current prices, NSI said in a statement. Gross value added at current prices amounted to BGN 16.4 billion in the April-June period. The services sector has the largest share, of 61.2%, in total value added, followed by the industrial sector, 34%, and agriculture with 4.8%.
Source: Darik Radio (15.08.2014)

Bulgaria reports 1.7% increase of turnovers in transport, storage and postal services Bulgaria’s National Statistical Institute (NSI) presented the latest turnover indices in services cover the activities included in sections “Transportation, storage and post”, “Information and communication” and “Other business services”. According to the preliminary data in the second quarter of 2014 total turnover index for section “Transportation, storage and post”, calculated on the basis of seasonally adjusted data, was 1.7% higher than the previous quarter. The highest growth was registered in Warehousing and support activities for transportation - by 4.6%. A reduction was registered in the activities Water transport and Postal and courier activities by 5.4% and 0.3%, respectively. The total turnover index in section “Information and communication” decreased by 1.4% in comparison with the previous quarter. The largest decline was registered in the activities Motion picture, video and TV programme production, music publishing activities - by 3.6% and Telecommunications - by 2.4%. An increase was seen in Information service activities and Publishing activities by 4.1 and 0.6%, respectively. In “Other business services” highest growth compared to the previous quarter is registered in Security and investigation activities and Cleaning activities by 7.1% and 6.8%, respectively. The greatest decrease compared to the first quarter of 2014 was observed in Other professional activities - by 6.2% and Advertising and market research - by 6.1%.
Source: profit.bg (22.08.2014)

Bulgaria’s producer price index on domestic market down 0.1% Producer Price Index on Domestic Market in July 2014 decreased by 0.1% compared to the previous month. The domestic prices rose in the mining and quarrying industry by 3.3% and in the manufacturing by 0.3%, while in the electricity, gas, steam and air conditioning supply the prices fell by 1.3%, shows the data of Bulgaria’s National Statistical Institute (NSI). In the manufacturing, compared to the previous month, the prices went up in the manufacture of basic metals by 1.9%, in the manufacture of basic pharmaceutical products and pharmaceutical preparations by 0.7% and in the manufacture of beverages by 0.6%, while a price decrease was reported in the repair and installation of machinery and equipment by 0.4%, in the manufacture of food products, in the manufacture of other non-metallic mineral products and in the manufacture of fabricated metal products, except machinery and equipment by 0.2%. Producer Price Index on Domestic Market in July 2014 decreased by 0.6% compared to the same month of 2013. The domestic prices fell in the mining and quarrying industry by 2.6% and in the electricity, gas, steam and air conditioning supply by 2.4%, while in the manufacturing the prices rose by 0.5%.
Source: money.bg (01.09.2014)

Bulgaria's deflation seen easing in H2 - Bulgarian Development Bank Bulgaria's EU-harmonised consumer price index (CPI) is expected to remain on negative territory but close to zero in the second half of 2014, the Bulgarian Development Bank (BDB) said on Monday. Bulgaria remains the country with the lowest inflation rate in the EU as its CPI in the second quarter of 2014 ranged between minus 1.5% and minus 2.0% on an annual basis, BDB said in a report on the state of the country's economy. According to data of the National Statistics Institute, Bulgaria’s EU-harmonised CPI fell 1.1% on the year in July after declining by 1.8% in June. Month-on-month, consumer prices edged up 0.6% in July after falling 0.3% a month earlier. The main factors that affected the decrease in prices in the first six months of the year were the dynamics of prices of durable consumer goods, liquid fuels, air passenger transport and certain types of processed foods, relatively low consumer demand and slow nominal wage growth, as well as changes in administered prices such as electricity, the bank added.
Source: Standart (09.09.2014)

Raiffeisenbank: High budget deficit remains the main risk for Bulgaria According to analysts from Raiffeisenbank, high budget deficit is one of the major risks for the economy of Bulgaria. “Reported deficit by June is 2.8% of the GDP. Meanwhile, government debt remains one of the highest in the EU,” Emil Kalchev, analyst from Raiffeisenbank, said. Raiffeisenbank Bulgaria published its regular monthly economic analysis for August. The analysis shows that the growth in GDP for Q2 of 2014 is relatively high (1.6%) compared to the same period of 2013.
Source: Standart (09.09.2014)

Unemployment rate in Sofia drops y/y 58 730 people have started work this year, data of the Labor Office toward August show. The unemployment rate was 10.4%, down by 0.2% from July 2014 and by 0.3% from August 2013. 342 503 people are registered at the Labor Office, down by 4 746 from July 2014 and by 8 935 y/y. Of this number 25 032 are under 24 and 132 942 are over 50. 12 746 started work in August, 1 907 more y/y. The highest number of job openings were in the processing industry (3 694), commerce (1873), administrative work (1823), education (1703), construction (725), real estate (714) and the hotel and restaurant business (517).
Source: Standart (09.09.2014)

Bulgaria’s turnover index in ‘Retail trade, except of motor vehicles and motorcycles’ rose in July 2014 as compared to June 2014 According to the preliminary seasonally adjusted data in July 2014 the turnover in ‘Retail trade, except of motor vehicles and motorcycles’ at constant prices increased by 0.5% compared to the previous month, the National Statistical Institute announced. In July 2014 the working day adjusted turnover in ‘Retail trade, except of motor vehicles and motorcycles’ grew by 4.0% in comparison with the same month of the previous year. In July 2014 compared to the previous month the turnover increased in the ‘Retail sale of automotive fuel’ by 4.2%, in the ‘Retail sale via mail order houses or via Internet’ by 2.3%, in the ‘Retail sale of computers, peripheral units and software; telecommunications equipment’ by 1.3%, in the ‘Retail sale of food, beverages and tobacco’ and in the ‘Retail sale of textiles, clothing, footwear and leather goods’ by 0.6% and in the ‘Dispensing chemist; retail sale of medical and orthopaedic goods, cosmetic and toilet articles’ by 0.5%. A decrease was registered in the ‘Retail sale in non-specialised stores’ - 0.7% and in the ‘Retail sale of audio and video equipment; hardware, paints and glass; electrical household appliances’ - 0.1%. In July 2014 compared to the same month of 2013 the turnover increased more significantly in the ‘Retail sale via mail order houses or via Internet’ by 22.0%, in the ‘Retail sale of automotive fuel’ by 7.1%, in the ‘Retail sale of food, beverages and tobacco’ and in the ‘Retail sale of computers, peripheral units and software; telecommunications equipment’ by 5.2%. A drop was registered in the ‘Retail sale in non-specialised stores’ - 2.0% and in the ‘Retail sale of audio and video equipment; hardware, paints and glass; electrical household appliances’ - 0.6%.
Source: Standart (10.09.2014)

Industrial production indices in Bulgaria up 0.2% in July 2014 as compared to June 2014 According to the preliminary data the Industrial Production Index, seasonally adjusted, increased by 0.2% in July 2014 as compared to June 2014, the National Statistical Institute announced. In July 2014 working day adjusted Industrial Production Index fell by 0.2 % in comparison with the same month of 2013. In July 2014 as compared to June 2014, the seasonally adjusted Industrial Production Index increased in the manufacturing by 2.0% and in the mining and quarrying industry by 1.5%, while in the electricity, gas, steam and air conditioning supply a decrease by 0.6% was seen. The most significant increases of production in the manufacturing were registered in the manufacture of other transport equipment by 27.4%, in the manufacture of tobacco products by 23.4%, in the manufacture of other non-metallic mineral products by 5.8%, in the manufacture of basic pharmaceutical products and pharmaceutical preparations by 5.3%, in the manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials by 5.2%. There was a decrease in the manufacture of chemicals and chemical products by 10.2%, in the wearing apparel by 2.1%, in the manufacture of leather and related products by 1.7 %. On an annual basis in July 2014 Industrial Production Index calculated from working day adjusted data decreased in the electricity, gas, steam and air conditioning supply by 11.9% and in the mining and quarrying industry by 0.9%, while in the manufacturing an increase by 3.9% was seen. In the manufacturing, the more significant increases compared to the same month of the previous year were seen in the manufacture of other transport equipment by 43.5%, in the manufacture of motor vehicles, trailers and semi-trailers by 19.8%, in the repair and installation of machinery and equipment by 18.5%, in the manufacture of rubber and plastic products by 17.8%, in the manufacture of computer, electronic and optical products by 16.5%. Decreases were registered in the manufacture of tobacco products by 5.7%, in the manufacture of chemicals and chemical products by 4.7%, in the manufacture of wearing apparel by 4.5%.
Source: econ.bg (10.09.2014)

Bulgaria's Construction Sector Records Slight Decline in July Bulgaria's construction sector index of production in July was 0.3% below its level in the previous month, according to the national statistics preliminary data. In July, the working day adjusted data showed an increase by 2.9% in the construction production, compared to the same month of 2013. In July, the construction production, calculated from the seasonally adjusted data, was below the level of the previous month. Index of production of civil engineering increased by 0.1%, while the production of building construction marked a decrease by 0.6%. On an annual basis in July 2014 the increase of production in construction, calculated from working day adjusted data, was determined mainly from the positive rate in the civil engineering by 11.3%,while in the building construction was registered a decrease by 3.4%.
Source: econ.bg (10.09.2014)

GDP reports its highest growth in the first half of 2014 Data by the National Statistical Institute (NSI) for the Q2 of 2014 showed that Bulgarian economy increased by 1.6% on an annual basis. This is Bulgaria’s GDP in Q2 of 2014 compared to the same period in 2013. The main reason for the economic growth was the industrial sector. Investment activity also increased in the first quarter of 2014. Stock indices in the entire EU reported a record increase of 40%. According to BNB, risks for Bulgarian economy are mainly related to geopolitical tension in Ukraine and Russia. Moreover, NSI data do not include effects of the case of Corporate Commercial Bank, the political crisis and Russian embargo on EU agricultural imports. The closing down of Corporate Commercial Bank (Bulgaria’s fourth biggest bank in terms of assets) on 20 June will have a negative effect on the economic activity, especially that of companies and households which are clients of the bank. The growing political insecurity related to the forthcoming parliamentary elections in October may also have a negative effect on economy, leading to a slow down of Bulgarian economic activity in the second half of 2014.
Source: Duma (12.09.2014)

Bulgarian export to EU up 2.8% y/y, main trade partners are still Germany and Italy Between January and June 2014 Bulgaria's exports to the EU increased by 2.8% compared to the same period last year and amounted to BGN 12.6 billion according to the National Statistics Institute data. The main trade partners of Bulgaria were Germany, Italy, Romania, Greece, France and Belgium, which formed 72.3% of the export value to EU members. In June 2014 exports to the EU increased by 10.6% over the same month of the previous year and amounted to 2.3 billion. Bulgaria's imports from the EU in the period January - June 2014 increased by 3.6% compared to the same period of the previous year and are worth 14.9 billion. The goods imported from Germany, Italy, Romania, Greece and Spain have the highest value. In June 2014 imports from EU states increased by 3.1 percent compared to the same month of the previous year and amounted to 2.6 billion. The foreign trade balance (export FOB - import CIF) of Bulgaria to the EU in the period January-June 2014 is negative and amounts to 2 336.1 million.
Source: Standart (15.09.2014)

Employment growth in the country is lagging behind the EU average The rate of growth of employment in Bulgaria is behind the average for the European Union (EU), according to the EU statistics office Eurostat. In the second quarter employment in the country has not changed compared to the first three months of the year, while the annual growth rate has remained unchanged - 0.3%, just as it was in the first quarter compared to the last three months of last year. While in the EU employment growth began to accelerate, albeit slowly. For the period from April to June it reached 0.3% compared to January-March when it was reported an increase in employment of 0.2%. On an annual basis, employment in the EU in the second quarter increased by 0.7%. In the previous quarter was achieved annual growth of 0.6%. Similar are the trends in the euro area as a whole, although the pace of employment growth to be slightly slower than the average for all 28 EU countries.
Source: investor.bg (15.09.2014)

Bulgaria Posts Deflation for 13th Month Running in August Bulgaria’s consumer prices fell 0.6% year-on-year in August, marking the 13th straight month of deflation, official figures showed on Monday. The drop in consumer prices, however, has slowed down for a third month running, compared to the hefty decline of over 2.5% in February 2014. The slowdown is in line with the latest forecast of the Bulgarian National Bank, which said last month that consumer prices would keep decreasing in the remainder of the year, albeit at a lower rate. Caretaker Finance Minister Rumen Porozhanov said earlier this month that the cabinet expects the Bulgaria’s economy to grow by 1.5%-1.6% in 2014 with deflation for the full year projected at 0.2%-0.3%. August consumer price index (CPI) was also lower month-on-month, declining by 0.2% after edging up 0.4% in July, which was only the second monthly rise since the beginning of 2014. In August, food prices decreased 0.5% month-on-month, footwear and clothes dropped 3.5%, while alcohol and tobacco prices rose 0.2% and house rents and utility services edged up 0.1%. Transport prices rose 0.5% on the month in August, while the prices of communications and hotel and restaurant services remained unchanged compared to July.
Source: expert.bg (16.09.2014)

Total Hourly Labor Cost Posts 3.6% Increase in Q2 2014 Y/Y Preliminary data of the Bulgaria's Statistical Institute for Q2 2014 indicates that the total hourly labor cost has risen by 3.6% compared to the second quarter of 2013. The total hourly labor cost grew by 6.9% in industry, by 1.1% in services and by 4.0% in construction. The breakdown by economic activities showed that the highest annual growth in total labor costs was recorded in Administrative and support service activities-10.3%, Mining and quarrying-9.0% and Water supply, sewerage,waste management and remediation activities – 8.3%. The greatest decrease in total labor costs was observed in Real estate activities by 14.9% and Wholesale and retail trade, repair of motor vehicles and motorcycles by 1.7%. In the structure of the total labor costs, the wages and salaries costs per hour work have increased by 3.0% in comparison with a year earlier, while the other (non-wage) costs rose by 6.5%. Among the economic activities in Q2 2014 compared to Q2 of 2013, the growth rate of wages and salaries component ranged from (-17.1%) in Real estate activities to 9.6% in Administrative and support service activities.
Source: investor.bg (18.09.2014)

EBRD Lowers Economic Growth Forecast for Bulgaria to 1.5% of GDP The European Bank for Reconstruction and Development (EBRD) has lowered its growth forecast for Bulgaria to 1.5% of the GDP. In May 2014, the EBRD predicted a growth rate of 1.9% for Bulgaria for 2014. The EBRD predicts economic growth of 2% in 2015 for Bulgaria. The EBRD explains the downgrade with the political instability and the banking sector turmoil in the country. At the same time, the EBRD takes into account the swift reaction of Bulgaria’s over the declaration of a commitment to join the Single Supervisory Mechanism in the EU.
Source: Darik Radio (18.09.2014)

Bulgaria's business sentiment index falls in September Bulgaria’s September business sentiment index edged down by 2.6 percentage points as compared to a month earlier due to more unfavourable business climate in industry, construction, and retail trade, the country's National Statistics Institute (NSI) said. In September the construction sub-indices declined by a monthly 7.3 percentage points due to the entrepreneurs' more reserved expectations about the business situation of enterprises, NSI said in a statement on its website. The industrial sub-index decreased by 2.2 percentage points from the previous month. The retail sub-index decreased by 1.2 percentage points as compared to August due to more moderate retailers' assessments about the business situation of the enterprises. The business climate gauge in the service sector remained unchanged from the previous month in September.
Source: Standart (30.09.2014)

Bulgaria’s Producer Price Index on Domestic Market down 0.1% in August Bulgaria’s Producer Price Index on Domestic Market in August decreased by 0.1% compared to the previous month, shows the data of the National Statistical Institute (NSI). The domestic prices fell in the manufacturing by 0.6% and in the mining and quarrying industry by 0.1%, while in the electricity, gas, steam and air conditioning supply the prices rose by 0.6%. In the manufacturing3, compared to the previous month the prices went down in the manufacture of wearing apparel by 0.6%, in the manufacture of food products and in the manufacture of beverages by 0.5%, while a price increase was reported in the repair and installation of machinery and equipment by 2.1%, and in the manufacture of fabricated metal products, except machinery and equipment by 0.5%. Producer Price Index on Domestic Market in August 2014 decreased by 1.0% compared to the same month of 2013. The domestic prices fell in the mining and quarrying industry by 4.8%, in the manufacturing by 0.3%, and in the electricity, gas, steam and air conditioning supply by 1.9%. In the manufacturing compared to August 2013, a price decrease was registered in the manufacture of food products by 3.9%, in the manufacture of chemicals and chemical products by 3.7%, in the manufacture of basic metals and in the manufacture of other transport equipment by 2.2%. The prices increases were seen in the manufacture of tobacco products by 7.7%, in the manufacture of motor vehicles, trailers and semi-trailers by 5.3% and in the manufacture of paper and paper products by 3.6%. Total Producer Price Index in Industry in August 2014 remained at the level of the previous month. Higher prices were registered in the mining and quarrying industry by 2.0% and in the electricity, gas, steam and air conditioning supply by 0.6%, while in the manufacturing the prices fell by 0.2%.
Source: Duma (01.10.2014)

Bulgaria’s GDP Growth Intensifies in Q2 2014 Bulgaria’s economy grew by a preliminary 1.6% on the year in the second quarter of 2014 following a 1.2% increase in the first quarter, the statistics office said. The second-quarter increase is an improvement on the result recorded in the equivalent period of 2013 when Bulgaria’s Gross Domestic Product (GDP) grew by 0.4%. Bulgaria, which posted economic growth of 0.9% last year, has projected a 1.5% rise in GDP for 2014. In terms of GDP per capita, H2 2014 GDP amounted to BGN 2,696, the National Statistical Institute (NSI) said.
Source: Standart (02.10.2014)

381,800 people unemployed in Bulgaria in the second quarter There were 381,800 people unemployed in Bulgaria during the second quarter of this year, which translated into unemployment rate of 11.4%.Compared to the second quarter of 2013, the number of unemployed decreased by 12.7% and the unemployment rate fell by 1.5 percentage points. According to the NSI business inquiries in September 2014, 12.5% of the industrial enterprises pointed out the labor force as a factor limiting their activity. In June 2014 the average salary is BGN 802, which is 1.7% less than the previous month. Compared to June 2013 the growth is 1.6%.
Source: Standart (02.10.2014)

Bulgaria Retail Sales Growth Slows Down M/M but Picks Up Y/Y in August The volume of retail trade in Bulgaria increased in August for a fourth month running, albeit at a slower pace, Eurostat figures showed on Friday. According to data released by the European Union’s statistical office, Bulgaria’s retail sales adjusted for the number of working days increased by 0.4% month-on-month in August, following monthly growth of 0.7%, 0.9% and 1.4% recorded in July, June and May, respectively. The monthly increase for Bulgaria in August compared to a 1.2% rise in the euro area and a 1.4% growth in the EU. In a year-on-year comparison, the increase in the retail sales index in Bulgaria in August beat growth rates in both the euro area and the EU. While retail sales picked up by 1.9% in the euro area and by 2.5% in the EU28 in August compared to the same month of 2013, in Bulgaria they expanded by 4.5%, accelerating from increases of 4.1% in July, 2.3% in June and 1.4% in May.
Source: econ.bg (06.10.2014)

Bulgaria’s Industrial Production Index Down 0.9% M/M in August 2014 According to preliminary data of Bulgaria’s National Statistical Institute (NSI), the Industrial Production Index, seasonally adjusted, decreased by 0.9% on the month in August 2014. In August 2014, the working day adjusted Industrial Production Index fell by 1.9% year-on-year. In August 2014, as compared to July 2014, the seasonally adjusted Industrial Production Index decreased in the segments of electricity, gas, steam and air conditioning supply by 2.9% and in the sphere of manufacturing by 0.7%, while in the mining and quarrying industry an increase by 2.8% was observed.
Source: vesti.bg (09.10.2014)

Bulgaria's Retail Trade Turnover Posts Modest Increase M/M in August According to the preliminary seasonally adjusted data of Bulgaria's National Statistical Institute, the turnover in retail trade increased by 0.4% in August compared to the previous month. In August 2014 the working day adjusted turnover in retail trade, except for motor vehicles and motorcycles grew by 4.5% in comparison with the same month of the previous year. A decrease was registered in the retail sale via mail order or via internet – 1.8%, in the retail sale in non-specialized stores – 0.5%, in the retail sale of textiles, clothing, footwear and leather goods and in the retail sale of computers, peripheral units and software; telecommunications equipment-0.4% and in the retail sale of audio and video equipment; hardware, paints and glass; electrical household appliances-0.2%. In August compared to the same month of 2013 the turnover increased more significantly in the retail sale via mail order or via internet by 21.0%, in the retail sale of automotive fuel by 11.1%, in the retail sale of computers, peripheral units and software; telecommunications equipment by 5.5% and in the retail sale of food, beverages and tobacco by 4.8%. A decrease was registered in the retail sale in non-specialized stores-4.1% and in the retail sale of audio and video equipment; hardware, paints and glass; electrical household appliances-1.3%.
Source: Class (09.10.2014)

Construction Production Index Down 1.6% in August Bulgaria's construction sector index of production in August was 1.6% below its level in the previous month, according to the national statistics preliminary data. In August 2014, the working day adjusted data showed a decrease by 0.3% in the construction production, compared to the same month of 2013. The construction production calculated from the seasonally adjusted data was below the level of the previous month. The index of production of building construction decreased by 1.5% and the production of civil engineering-by 1.6%. On an annual basis in August 2014, the decrease of production in construction, calculated from working day adjusted data, was determined mainly by the negative rate in the building construction by 7.7%, while in the civil engineering was registered an increase by 9.7%.
Source: Standart (09.10.2014)

Bulgarian exports to EU rise by 3.6% in January – July 2014 period y/y In the period January – July 2014 Bulgarian exports to the EU increased by 3.6% compared to the corresponding period of the previous year and amounted to BGN 15.2 billion. Main trade partners of Bulgaria were Germany, Italy, Romania, Greece, France and Belgium, which accounted for 72.3% of the exports to the EU Member States, data of the National Statistical Institute shows. In July 2014 the exports to the EU increased by 7.5% compared to the corresponding month of the previous year and amounted to BGN 2.6 billion. Bulgarian imports from the EU in the period January – July 2014 increased by 2.3% compared to the corresponding period of the previous year and added up to BGN 17.7 billion at CIF prices. The largest amounts were reported for the goods imported from Germany, Italy, Romania, Greece and Spain. In July 2014 the Bulgarian imports from the EU Member States decreased by 4.2% compared to the corresponding month of the previous year and amounted to BGN 2.7 billion at CIF prices. The foreign trade balance of Bulgaria (export FOB - import CIF) with the EU in the period January – July 2014 was negative and added up to BGN 2,445.7 million. At FOB/FOB prices (after elimination of transport and insurance costs on imports) the trade balance was also negative and amounted to BGN 1,739.8 million. In the first seven months of 2014 compared to the corresponding period of the previous year the largest growth (32.0%) in the exports of Bulgaria to the EU distributed according to the Standard International Trade Classification was recorded in the section “Animals and vegetable oils, fats and waxes”. The most notable fall was recorded in sections “Beverages and tobacco” (22.1%) and “Crude materials, inedible (except fuels)” (11.9%). In imports from the EU the largest growth (9.2%) was reported in section “Miscellaneous manufactured articles” while the most notable fall (14.1%) was observed in section “Animals and vegetable oils, fats and waxes”.
Source: Class (10.10.2014)

Bulgaria's jobless rate rises to 10.5% in Sept Bulgaria’s unemployment rate was up by 0.1 percentage point on the month to 10.5% in September, while falling 0.3 percentage points compared to the same month a year earlier, the country’s Employment Agency said. A total of 345,375 unemployed were registered with the agency’s offices at the end of last month, up by 2,872 from August and down by 9,188 from the same month last year, the agency said in a statement. The number of people who found a job in September totalled 17,696, up by 4,950 compared to August and down by 2,267 from the same month in 2013. Bulgaria, which joined the European Union in 2007, has a population of 7.3 million.
Source: profit.bg (13.10.2014)

Bulgaria Registers 0.8% Deflation Y/Y September 2014 The consumer price index in September compared to August was 99.8%, i.e. the monthly inflation was-0.2%, the latest data revealed by Bulgaria's National Statistical Institute shows. The inflation rate since the beginning of the year (September 2014 compared to December 2013) has been -1.4% and the annual inflation in September 2014 compared to September 2013 was -0.8%. The annual average inflation, measured by CPI, in the last 12 months compared to the previous 12 months was-1.6%. In September 2014 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 0.9%; alcoholic beverages and tobacco - an increase of 0.1%; clothing and footwear-a decrease of 0.4%; housing (rentals, maintenance and repair), water, electricity, gas and other fuels-an increase of 0.2%. The harmonized index of consumer prices in September compared to the previous month was 99.3%, i.e.the monthly inflation was-0.7%. The inflation rate since the beginning of the year has been -1.9% and the annual inflation in September 2014 compared to the same month of 2013 was-1.4%. The annual average inflation, measured by HICP, in the last 12 months compared to the previous 12 months (October 2012-September 2013) was-1.4%.
Source: Trud (15.10.2014)

Average Insurable Earnings Come up to BGN 671.51 in August The average monthly insurable earnings in Bulgaria for the period October 2013 – August 2014 amounted to BGN 670.58, according to data provided by the National Social Security Institute. The average monthly insurable earnings in the country for the month of August were BGN 671.51. The estimated average monthly insurable earnings for that period are used for the calculation of the amount of the new pensions granted in September 2014, according to the Social Security Code.
Source: Class (15.10.2014)

Bulgaria's New Car Market Registers 9% Increase in 2014 In September, the EU market for new passenger cars expanded for the thirteenth consecutive month, totalling 1,235,501 units, the latest report released by the European Automobile Manufacturers Association. According to the survey of ACEA, the sales of new cars in Bulgaria in September registered a slight increase of 0.6% annually to 1,567 units after a decline of 0.8 percent in August. For the first nine months of the year the registration of new cars in Bulgaria increased by 9% to 15,150 automobiles from 13,898 units in the same period of 2013. According to this indicator Bulgaria takes the sixteenth place among all EU members. Substantial growth prevailed in all major markets, Spain (+26.2%), France (+6.3%), UK (+5.6%), Germany (+5.2%) and Italy (+3.3%) leading to an upturn (+6.4%) across the region as a whole. From January to September, the EU market for passenger cars increased (+6.1%) compared to the first nine months of 2013, mainly caused by the significant growth recorded in Spain (+17.2%) and the UK (+9.1%). Likewise Italian (+3.6%), German (+2.9%) and French (+2.1%) markets expanded.
Source: Class (20.10.2014)

The deficit in "government management" decreases, debt grows Government deficit in "government management" for last year was 1.2 percent of GDP or BGN 989 million, NSI announced. The Institute presented data on deficit and debt of the sector for the period 2010 - 2013. GDP in 2013 was BGN 80.282 billion. For four years the deficit of the sector declined. It was the lowest - 0.5 percent of GDP in 2012, and the highest - 3.2% of GDP in 2010. Debt of "government management" is BGN 14.731 billion in 2013, which is 18.3 per cent of GDP. In 2010, the country has the lowest amount of debt for the analyzed period NSI – BGN 11.453 billion. For four years the sector's debt is growing.
Source: Presa (22.10.2014)

Bulgaria ranks second in the EU in lowest debt Bulgaria ranks second in the EU with the lowest public debt, according to the latest revised data to Eurostat. At the end of 2013 the debt of the EU-28 amounted to EUR 11.55 trillion or 85.4% of GDP and grows compared to previous years. Lowest debt as a percentage of GDP were recorded in Estonia (10.1%), Bulgaria (18.3%), Luxembourg (23.6%), Romania (37.9%), Latvia (38.2%), Sweden (38.6%) and Lithuania (39%). Even with loans taken in 2014 Bulgaria is still before Luxembourg in terms of debt as a percentage of GDP. But if by the end of the year are issued additional bonds in the amount of BGN 1.5 - 1.6 billion to pay the guaranteed deposits in Corpbank and budget deficit reached 4% of GDP and is again funded with new government securities, then Bulgaria will go to third place after Luxembourg. 16 EU countries have a public debt higher than 60% of GDP in 2013, the highest level of debt in Greece (174.9%), Portugal (128%), Italy (127.9%), Ireland (123.3%), Belgium (104.5%) and Cyprus (102.2%).
Source: Standart (22.10.2014)

Bulgaria finance ministry lowers its GDP growth forecast to 1.5% for 2014 Bulgaria’s finance ministry has cut its GDP growth forecast to 1.5% for 2014, according to the institution’s autumn economic outlook. The downgrade was a result of declining exports and lower-than-expected oil prices. Back in the spring, the ministry foresaw a growth of 2.1%, which it later revised to 1.8% and now it says the nation’s economy will expand by just a percent and a half to BGN 81.431 billion. The autumn forecast of the finance ministry also shows that the deflation issue has been seriously underestimated in the start of the year and what was a -0.2% decline in consumer prices in late December last year is now on a course to reach -1.1%, making Bulgaria the EU member state with the biggest deflation in September. The finance ministry has also downgraded its GDP growth forecasts for 2015 and 2016, as well, to 1.2% from 2.6% and to 2% from 3.4% respectively.
Source: Monitor (23.10.2014)

Youth unemployment in Bulgaria up 5% in September Youth unemployment in Bulgaria has increased by 5% in September compared to levels in August, Presa Daily informs citing Employment Agency data. The Agency justifies the rise with the end of the holiday season, when many young people aged under 25 are done with their jobs in the tourism sector. Bulgaria is among the EU member states with relatively high jobless rate among the youth – 24.2% against an EU average of 22%, Eurostat figures show. Overall unemployment in Bulgaria was 11.3% in late August against an EU average of 10.1%.
Source: Presa (27.10.2014)

Bulgaria’s Producer Price Index Up 0.2% M/M in Sept 2014 The Producer Price Index on the domestic market increased by 0.2% on the month in September 2014, according to Bulgaria’s National Statistical Institute (NSI). Domestic prices increased in the mining and quarrying industry by 0.8%, in the manufacturing by 0.1% and in the electricity, gas, steam and air conditioning supply by 0.4%. In the sphere of manufacturing, monthly price increases were registered in the groups of basic metals by 1.7%, chemicals and chemical products by 1.3%, beverages by 0.2%, and fabricated metal products, except machinery and equipment by 0.2%. At the same time, monthly price decreases were reported in the production of textiles by 0.8% and vehicles other than cars by 0.4%. In September 2014, the Producer Price Index on the domestic market decreased by 0.6% as compared to September 2013. Domestic prices decreased in the mining and quarrying industry by 2.4% and in the electricity, gas, steam and air conditioning supply by 1.5%, while prices in manufacturing remained unchanged. In the sphere of manufacturing, annual price decreases were registered in the groups of food products by 2.3%, vehicles other than cars by 1.9%, and textiles by 1.6%. At the same time, annual price increases were reported in the production of tobacco products by 7.6%, motor vehicles, trailers and semi-trailers by 5.3%, and beverages by 2.7%.
Source: Dnevnik (31.10.2014)

Bulgarian agricultural land prices crash by up to 35% Y/Y due to delayed EU payments The price of agricultural land is going down rapidly in Bulgaria. The depreciation of fields is especially quick in southern Bulgaria, according to the latest data of the National Statistical Institute. The crush is a result of the unusually low commodity prices and delays of the EU payments. In the southwest region of the country parcels lost 35% of their value as compared to 2013. While transactions in the southwestern part of the country in 2014 were concluded for an average price of BGN 301 per acre, the price for the same deal used to be BGN 463 a year earlier. Fields in northeastern Bulgaria, where the parcels used to be the highest in themand and as a result the most expensive, have also become 9% cheaper on a year-on-year basis.
Source: Standart (03.11.2014)

EU sees Bulgaria's GDP growth at 1.2% in 2014, 0.6% in 2015 The European Commission said on Monday it expects Bulgaria's economic growth to remain muted, falling from 1.2% in 2014 to 0.6% in 2015 and 1.0% in 2016 as domestic demand weakens. "After a deflationary period in 2014, inflation is set to only slowly pick up to 1.0% in 2016," the European Commission said in its 2014 Autumn Forecast. In its previous forecast, released in May, the commission projected Bulgaria's gross domestic product (GDP) growth at 1.7% in 2014 and 2.0% in 2015. In 2013 Bulgaria's gross domestic product (GDP) grew by a real 1.1%. The European Commission said it expects private consumption to lose momentum by 2015 and private investment to contract further in 2014-15, mirroring the on-going deleveraging process in the economy and low profit expectations amid increased uncertainty. "Despite a slowdown in the first half of 2014, exports are set to resume growing at a moderate pace in 2015-16, sustained by the mild recovery in both the EU and non- EU trade partners," the Commission noted. "On the back of a further slowdown of domestic demand, the contribution of net trade to overall economic growth is projected to turn positive in 2015, while the current account surplus is seen stable at about 2.0% of GDP by 2016," it added. A more prolonged weakness of business and consumer confidence together with the fragile labour market could lead to a reduction of domestic demand while Bulgaria's dependence on Russian gas imports could become a further burden to growth in case of disruption of supplies, the Commission said.
Source: econ.bg (05.11.2014)

Bulgaria's Sept retail trade turnover rises 5.6% y/y Bulgaria's retail trade turnover, at constant prices, rose by an annual 5.6% in September, according to preliminary seasonally adjusted data, after rising by 4.5% a month earlier, the country’s statistics institute NSI said on Friday. On a monthly basis, the retail trade turnover increased by 0.5% in September after rising by 0.6% in August, NSI said in a quarterly bulletin. In September, turnover increased more significantly in retail sale via mail order houses or via Internet, by 19.4% year-on-year, and in retail sale of computers, peripheral units and software and telecommunications equipment by 14%.
Source: Standart (10.11.2014)

15.6% growth in exports to third countries on an annual basis In the January-September period of 2014 Bulgaria's exports to third countries decreased by 8% compared to the same period of 2013 and amounted to BGN 11.9 billion, NSI announced. Major trading partners of Bulgaria were Turkey, Singapore, Russia, China, Macedonia and Serbia, which formed 53.2% of the exports to third countries. However, in September 2014 Bulgaria's exports to third countries increased by 15.6% compared to the same month of the previous year and amounted to BGN 1.5 billion. Bulgaria’s import from third-countries decreased by 2.9% in the first nine months of 2014 compared to the same period of 2013 and amounted to BGN 14.8 billion. The largest volume is of goods imported from the Russian Federation, Turkey, China and Ukraine. In September 2014 Bulgaria’s import from third countries increased by 8.4% compared to the same month of the previous year and amounted to BGN 1.9 billion. The foreign trade balance (export FOB - import CIF) with third countries in January-September 2014 is negative and amounts to BGN 2.841 bln. In September 2014 the foreign trade balance with third countries is negative and amounts to BGN 386.9 million.
Source: Duma (11.11.2014)

Salaries and employees drop in Bulgaria - statistics The number of people with labor agreements as well as the average salaries dropped toward the end of September, data of the National Statistical Institute show. Preliminary data show that the number of labor agreement holders dropped by 490 700 or 2.2% compared to June. The biggest annual decline in the number of employees, at least officially, was observed in the economic sector. Employees in the hotel and restaurant branch dropped by 19.5%, while those in culture, sport and entertainment dropped by 13.6%. There was a 2.2% increase in education. The average gross monthly salary was BGN 815 in July, 793 in August and 820 in September. The average salary in the third quarter of this year was 809, down by 1% from the previous quarter. The biggest drop was registered in finance and insurance with 7.5% and in power production by 4.3%. Employees in the IT sector got BGN 1753 a month on average in Q3/2014, making them the highest paid. Employees in power production and insurance follow with 1528 and 1466. The worst-paid staff is the staff in the hotel and restaurant branch with 555 a month and in public administration with 556.
Source: Standart (11.11.2014)

Bulgaria's Consumer Prices Rise 0.9% M/M in October Bulgaria’s consumer prices rose 0.9% month on month in October after falling by 0.2% in each of the previous two months, the statistics office said in Wednesday. A 10% increase in electricity prices and a rise in prices of clothing and footwear were the main reasons for the turnaround to inflation in October. The statistics office had reported deflation on a monthly basis for most of the previous nine months of the year, with the exception of July and April. Inflation for the first 10 months of the year was also negative at -0.5%, the National Statistical Institute said in a statement. In October 2014, consumer prices were 0.4% lower than they had been a year earlier. The NSI had reported consumer price deflation on an annual basis in both September and August (-0.8% and -0.6% respectively.) Prices of clothing and footwear increased the most, by 6.4% month-on-month in October, followed by housing, water and electricity prices, which rose 4.3%. Prices of alcoholic beverages and tobacco increased by 0.1% in October, compared to September. At the opposite end were the prices of healthcare services (down 0.2% month on month) and transport (a decrease of 2.7%). Petrol prices fell 2.3% and gas prices dropped 3.4%. Monthly inflation measured by the EU-defined harmonized index of consumer prices (HICP) was 0.1% in October. Inflation measured by HICP since the beginning of 2014 was negative (-1.8%). Annual inflation in October 2014 compared to October 2013 was also negative (-1.5%).
Source: Sega (13.11.2014)

Bulgaria's unemployment rate falls to 10.8% in Q3 Bulgaria’s unemployment rate posted a drop to 10.8% in the July-September period, down by 1.2 percentage points from a year earlier, data of the country's statistics office, NSI, indicated on Friday. The average number of unemployed was 368,800 in the third quarter of 2014, NSI said in a statement. The unemployment rate among men dropped by 1.1 percentage points to 11.5% on an annual basis in the July-September period and fell by 1.4 percentage points among women to 9.9%. Bulgaria, which joined the European Union in 2007, has a population of 7.3 million.
Source: investor.bg (17.11.2014)

Bulgaria’s GDP Up 1.6% Y/Y in Q3, 2014 In the third quarter of 2014, Bulgaria’s Gross Domestic Product (GDP) increased by 1.6% on the year and by 0.5% from the second quarter of 2014, according to the National Statistical Institute (NSI). According to the flash GDP estimates for the third quarter of 2014, the GDP at current prices amounted to BGN 22 410 million, while the Gross Value Added (GVA) stood at BGN 19 074 million. Final consumption accounted for 70.7% of the GDP, or BGN 15 845 million. In Q3, 2014, gross capital formation stood at 21.7% of the GDP, or BGN 4 870 million. The external balance (exports minus imports) was positive. According to seasonally adjusted data, the GDP grew by 0.5% on a quarterly basis in Q3, 2014 . GVA increased by 0.5% on a quarterly basis in Q3, 2014. In Q3, 2014, final consumption went up by 1.4% on the year in Q3, 2014, while gross fixed capital formations went up by 4.2% over the same period.
Source: Dnevnik (17.11.2014)

Bulgarian Entrepreneurs Expect 10.4% Y/Y Decrease in Industry Investments in 2015 Entrepreneurs in Bulgaria expect to report a decrease in investments by 10.4% in 2014 as compared to 2013, according to a business inquiry of the National Statistical Institute (NSI) carried out among industrial enterprises in October 2014. Energy and water-related industries account for the biggest relative share of planned investments in 2014 (41.7%), followed by industries producing intermediate goods (31.1%) and industries producing non-durable goods (16.2%). Forecasts about 2015 included a 28.2% decrease in industry investments on an annual basis. Apart from that, around 38% of the enterprises do not plan to spend any resources on the acquisition of fixed assets in 2015. As regards the structure of investments, energy and water-related industries have the biggest relative share yet again, at 42.0%, followed by industries producing intermediate goods and industries producing non-durable goods with 29.5% and 16.1%, respectively. In 2015, investments in increasing production capacity are expected to make up 31.3% of the total amount of investments in industry, followed by investments in the mechanization or automatization of existing production processes and the introduction of new technologies, at 29.8%, investments in replacingworn-out equipment, at 25.8%, and investments in environmental protection, safety measures, etc. - at 13.1%.
Source: Standart (17.11.2014)

Romania posts EU's highest monthly rise of construction output in Sept - Eurostat Romania posted the sharpest monthly increase, of 7.9%, in construction output among EU member states in September, whereas Slovenia recorded the biggest decrease, of 8.6%, the bloc's statistics office said on Wednesday. In the EU28, production in construction went down by a monthly 0.9% in September after staying flat the previous month, Eurostat said in a statement. Slovenia joined the bloc in 2004, Romania and Bulgaria in January 2007, and Croatia became the EU's 28th member on July 1, 2013.
Source: National radio (20.11.2014)

Trips by Bulgarians Abroad Dip in October, Foreigners’ Visits Rise The number of Bulgarians travelling abroad fell by 1.8% year-on-year in October, reaching 300,900, the statistics office said on Thursday. While trips by Bulgarians to Serbia, Romania, Italy and Austria decreased last month compared to October 2013, trips to France, Germany, the UK, Greece and Turkey picked up. Tourism travel accounted for 33% of all trips by Bulgarian residents abroad last month, an increase of 61% compared to October 2013.Business trips increased by 5% year-on-year to account for 26% of all trips abroad by Bulgarian residents last month. Unlike trips by Bulgarians abroad, the number of foreign visitors to Bulgaria increased by 1.9% year-on-year in October, reaching 557,100. Visits for business and tourism purposes by non-residents decreased by 7.8% and 23.3%, respectively, compared to October 2013, while trips relating to visits to friends and relatives, education, and cultural and sport events in Bulgaria increased by 31%,. EU citizens accounted for 54% of the total number of foreigners’ visits to Bulgaria last month, an increase of 0. 2% in comparison with October 2013.
Source: Dnevnik (27.11.2014)

More Turkish tourists expected in Bulgaria this winter An increase of number of tourists this ski season is expected to be around 4-5%, with highest growth posted by visitors from Turkey – around 10%. More tourists are expected to come from Greece as well. The hoped for growth is assessed to about 5%. The same increase is seen in tourists from UK and Germany who chose to visit our country this year. Romanians are to be more by 1 to 2%. The number of Russian tourists is expected to decrease by around 4%. On the other hand, interest in Bulgaria as a tourist destination in faraway places such as Libya, China and Japan is increasing.
Source: Darik Radio (27.11.2014)

Seaside tourism has registered lower profit due to the weak season Conclusions about the weak tourist season along the seaside this summer have been reflected in the consolidated reports of public companies from the sector. All of them have reported drops of income from hotel, restaurant and tour operator activities in end-September. The main reason is the withdrawal of Russian clients due to the conflict between Russia and Ukraine and the bankruptcy of several Russian tour operators, which led to the cancellation of bookings. Regardless, companies in the sector mark profit and declare intentions for investments, mostly in the improvement of infrastructure along the seaside. Albena marked an around BGN 6 million lower profit YoY to BGN 15.8 million in the end of the summer season.
Source: Capital (30.11.2014)

Bulgaria's minimum wage increases from BGN 340 to BGN 360 From 1 January the minimum wage in Bulgaria will be increased from BGN 340 to BGN 360 lev, Finance Minister Vladislav Goranov disclosed during a briefing in the Council of Ministers. The government forecasts that as of July 1, 2015 the minimum wage to be further increased to BGN 380. Plans forecast a rise to BGN 420 in January 2016 and BGN 420 and BGN 460 from January 2017 as a minimum wage in Bulgaria.
Source: Standart (02.12.2014)

Bulgaria’s Q3 GDP Grows 1.5% Bulgaria’s economy expanded by 1.5% year on year in the third quarter of 2014, official figures showed on Wednesday. Gross Domestic Product (GDP) grew by 0.4% compared with the second quarter of 2014, according to preliminary seasonally adjusted data. The National Statistical Institute (NSI) said in a statement GDP totalled BGN 22.8 bln (EUR 11.7 bln) at current prices in the third quarter of 2014. GDP per capita was BGN 3,161 (EUR 1,616). In the third quarter of 2014 spending on final consumption formed 69.1% of GDP, while investments contributed 20.7% of GDP. Imports of goods and services increased by 2.6% year on year in the third quarter of 2014, while exports dropped by 2.8%.
Source: econ.bg (04.12.2014)

Bulgaria’s Industrial Production Index Up 0.5% M/M in October According to the preliminary data of Bulgaria’s National Statistical Institute (NSI), the Industrial Production Index, seasonally adjusted, increased by 0.5% on the month in October 2014. In October 2014, the working day adjusted Industrial Production Index went up by 0.4% on the year. In October 2014,the seasonally adjusted Industrial Production Index registered monthly increases in the mining and quarrying industry by 5.8% and in the supply of electricity, gas, steam, and air conditioning by 3.7%, while in manufacturing a decrease by 0.3% on the month was observed. The most significant decreases in production in manufacturing were registered in the repair and installation of machinery and equipment by 9.8%, in the production of fabricated metal products, except machinery and equipment by 9.6%, and in the production of machinery and equipment by 4.5%. The production of other transport equipment increased by 30.6%, the production of chemicals and chemical products added 13.6%, and the production of computer, electronic and optical products went up by 7.4%.
Source: Dnevnik (09.12.2014)

Bulgaria’s Oct construction output index falls 1.0% M/M Bulgaria’s construction output index fell by 1.0% on the month in October, preliminary data from the National Statistics Institute (NSI) indicated on Monday. In annual terms, the index showed a 2.7% increase in October for working day-adjusted data, NSI said in a statement.
Source: investor.bg (09.12.2014)

Bulgaria's Oct retail trade turnover rises 3% y/y Bulgaria's retail trade turnover, at constant prices, rose by an annual 3% in October, after going up by an annual 5.6% a month earlier, according to preliminary seasonally adjusted data, the country’s statistics institute said on Monday. On a monthly basis, retail trade turnover increased by 0.1% in October after rising by 0.5% in September, data of the National Statistical Institute (NSI) indicated. In October, retail sale via mail and Internet saw an increase by 17.3% year-on-year, NSI figures showed. Retail sale of automotive fuel and lubricants posted an annual increase of 8.0%, whereas retail sales of pharmaceutical products increased 6.6% year-on-year in October. Retail turnover in the textile and footwear industry went down by a monthly 8.0% in October.
Source: Standart (09.12.2014)

Bulgarian machine building exporters to Russia face a major challenge because of the depreciation of the ruble to the dollar. Currently, a dollar is exchanged for 54 rubles and Russians refrain from new orders as Bulgarian goods are very expensive, said the head of the Branch Chamber of Machine Building - Ilia Keleshev. Last year Bulgaria exported to Russia goods worth BGN 1.2 billion, of which over BGN 400 million due to exports of machinery and equipment. Today, however, some companies report decrease in orders by 20-30%. Biomashinostroene Plovdiv, after losing market in Ukraine, exported modern design heat exchanger for New Zealand a few days ago. Podemcrane -Gabrovo, the former leading manufacturer of electric telfers in Europe, already export to Iran, Italy and Poland. RAIS Pazardzhik, manufacturer of machining centers, creates a joint venture in Germany and participated in the exhibition in Canton - China.
Source: Presa (10.12.2014)

Bulgaria exported goods for BGN 19.9 billion in EU Between January and September 2014, Bulgaria’s exports for the EU have dropped by 2.1%, as compared to the same period of last year. It is to the amount of BGN 19.9 billion. Imports have soared by 2.8% to BGN 2.29 billion. More than 70% of the export is directed to six European countries: Germany, Italy, Romania, France and Belgium. Exports for three of them are going down. Goods for BGN 3.9 billion have been exported to Germany, which is a 4.9% drop, as compared to a year ago. Good s, exported to Greece have decreased by 8.8% totaling BGN 2.1 billion, while the decline for Italy is 1.6% to BGN 2.9 billion. Just for September exports for the EU dropped by 2.5% as compared to the same month of last year when it was to the amount of BGN 2.4 billion. Bulgaria’s import from the EU for the nine months of the year has gone up by 2.8% and is to the amount of BGN 2.4 billion. Nearly 60% of the imported quantities comes from Germany (+ 9.3%), Italy (-4.4%), Romania (+ 5.5%), Greece (-11.9%) and Spain (-9.5%). The largest percentage increase in imports is registered for Malta - nearly 15 times to BGN 136 million. The foreign trade balance with the EU in the period January to September was negative and amounted to BGN 2.944 billion.
Source: Presa (10.12.2014)

Bulgaria export to 3rd countries down 7.1% in January-October In the time period January - October 2014 Bulgarian exports to third countries has decreased by 7.1% compared to the corresponding period of 2013 and amounted to BGN 13.5 billion, shows the data of Bulgaria's National Statistical Institute (NSI). The main trade partners of Bulgaria were Turkey, Singapore, Russian Federation, China, Macedonia and Serbia, which accounted for 53.0% of the exports to non-EU countries. In October 2014 exports to third countries decreased by 2.5% compared to the corresponding month of the previous year and amounted to BGN 1.5 billion. Bulgarian imports from third countries in the first ten months of 2014 decreased by 2.8% compared to the corresponding period of 2013 and added up to BGN 16.5 billion BGN (at CIF prices). The largest amounts were reported for the goods imported from the Russian Federation, Turkey, China and Ukraine. In October 2014 Bulgarian imports from third countries decreased by 2.7% compared to the corresponding month of the previous year and amounted to BGN 1.7 billion. The foreign trade balance of Bulgaria (export FOB - import CIF) with third countries in the period January - October 2014 was negative and added up to BGN 2 992.1 million. The trade balance at FOB/FOB prices (after elimination of transport and insurance costs on imports) was also negative and amounted to BGN 2 210.0 million. In October 2014 the foreign trade balance of Bulgaria (export FOB - import CIF) with third countries was negative and amounted to BGN 191.5 million. In the period January - October 2014 the value of all exported goods from Bulgaria amounted to BGN 35.9 billion and compared to the corresponding period of 2013 the exports decreased by 1.4%. In October 2014 the total exports added up to BGN 4.0 billion and increased by 1.9% compared to the corresponding month of the previous year. The total value of all the goods imported in the country in the period January - October 2014 amounted to 42.4 Billion BGN (at CIF prices), or by 0.9 % more than corresponding period of 2013. In October 2014 the total imports increased by 4.4% compared to the corresponding month of the previous year and added up to 4.7 Billion BGN.
Source: Agency Focus (11.12.2014)

Unempoyement with a minimum growth in November up to 10.8% Level of unemployment in Bulgaria in November is 10.8%, as it goes up by 0.1 percentage points, if compared to October. At an annual base its level is considerably lower- by 0.7 percentage points. The increase in unemployment is registered for a third consecutive month, after the index has been dropping from February to August 2014. The first slight increase after the drop was registered in September with the end of the seasonal employment. In 2014 the Employment agency has reported the lowest growth in unemployment in November, as compared to the previous month from 2008 on. In November, the labor offices registered 353,604 unemployed, or 2159 more people as compared to October. If compared to the last November number of unemployed is considerably smaller- by 22 957 people. In November unemployed youngsters up to 24 are 26 080-by 338 less as compared to October and by 8504 less if compared to November last year.
Source: investor.bg (15.12.2014)

BGN 285.92 average monthly poverty line in Bulgaria in 2013 Poverty and social inclusion indicators are part of the general EU indicators for tracing the progress in the field of poverty and social exclusion. Main source of statistical data on which basis the indicators are calculated is the annually conducted Survey on Income and Living Conditions (EU - SILC), Bulgaria’s National Statistical Institute (NSI) announced on Monday. In 2013, the average monthly poverty line for the country is BGN 285.92 per person. The number of persons who are below this line is 1,527.5 thousand representing 21.0% of the population in Bulgaria. Compared to the previous year the poverty line has increased by 2.2% and the share of poor population has decreased by 0.2 percentage point. The social protection system contributes considerably to the poverty decrease. According to 2013 data, if the income from pensions is included into the household’s income and the rest social transfers are excluded, the poverty level increases from 21.0 to 26.7%, or by 5.7 percentage points. And respectively, if the pensions and the rest of the social transfers are excluded, the poverty level increases to 41.8%, or by 20.8 percentage points. The main factor influencing the risk of poverty for the prevailing part of population is the economic activity and participation in the labour market. For the observed period, the share of the poor is highest among the unemployed (47.6%) and the risk of poverty for unemployed men is 0.2 percentage points higher than unemployed women. In 2013, the rate of poverty among employed persons decreased compared to the previous year to 7.2% or by 0.2 percentage points. The share of poor persons working part-time is 20.9%, while among those working full-time this share is 6.4%. At the same time the risk of poverty among women is 0.5 percentage points lower than that of men.
Source: Sega (16.12.2014)

Drop of Fuel Prices Results in Deflation in Bulgaria Inflation has returned to its negative values in November, when the index of consumer prices decreased with 0.4 % compared to October. This is evident by the latest data of the National Statistical Institute (NSI). In the past year monthly inflation has been recorded only in four months – December 2013 and April, July and October 2014, causing the annual inflation to be minus 0.6 %. The average annual inflation for the period between December 2013 and November 2014 compared to the previous 12 months is minus 1.5 %. The transport services record the highest fall in prices – 3.3 %, with the prices of diesel decreasing with 5.6 %, A 95 H petrol with 5.8 %, A 98 H with 3 %, gas with 5.3 %, airplane tickets with 2 %. The fall in the prices of foods and soft drinks is 0.4 %, while alcohol and cigarettes increase with 0.2 %. The prices of clothes and shoes increase with 0.8 %, expenses on utilities rise by 0.2 %. NSI records that coal prices has increased with 1.3 % on average, heating with 4.7 %. The prices of medical services increased with 0.2 %, the prices of medicines and other pharmaceutical products as well as dental services remain at the level of the previous month.
Source: Standart (16.12.2014)

Minimum wage to increase in 2015 Minimal wage in Bulgaria will increase two times in 2015. As of 1 January 2015, wages will rise from BGN 340 to BGN 360. In six more months (on 1 July 2015), wages will rose by BGN 20 to BGN 380. Bulgarian government believes that a gradual increase in the minimal wage will help fighting grey economy and will reduce the number of the so-called “working poors”.
Source: Novinar (18.12.2014)

Total hourly labour cost in Bulgaria up 3.2% in Q3 of 2014 y/y Preliminary data of the NSI for the third quarter of 2014 indicates that the total hourly labour cost rose by 3.2% compared to the third quarter of 2013. The total hourly labour cost grew by 5.3% in industry, by 0.9% in services and by 4.3% in construction, Bulgaria’s National Statistical Institute (NSI) announced. The breakdown by economic activities showed that the highest annual growths in total labour costs were recorded in ‘Public administration and defence; compulsory social security’ – 8.0%, ‘Administrative and support service activities’ - 6.9% and ‘Transportation and storage’ - 6.7%. The highest decrease in total labour costs was observed in ‘Real estate activities’ by 16.3% and ‘Information and communication’ by 3.9%.In the structure of the total labour costs, the wages and salaries costs per hour worked grew by 2.6% in comparison with a year earlier, while the other (non-wage) costs rose by 5.7%. Among the economic activities in the third quarter of 2014 compared to the third quarter of 2013 the growth rate of wages and salaries component ranged from (-18.4%) in ‘Real estate activities’ to 7.8% in ‘Public administration and defence; compulsory social security’.
Source: Agency Focus (22.12.2014)

Deflation again hit producer prices in Bulgaria The overall index of producer prices in Bulgaria (PPI index) fell in November by 0.5% compared to the previous month, while producer prices on an annual basis remained unchanged, according to the National Statistics Institute. Decrease in prices by 0.8% on a monthly basis is recorded in manufacturing, while mining and quarrying industry prices increased by 1.1%, and the production and distribution of electricity, heat and gas prices were unchanged (0.0%). On an annual basis the overall index of producer prices in the country in November was unchanged (compared to November 2013.) after the October index came in positive for the first time in more than a year, rising by 0.5 percentage points. The index of producer prices on only the domestic market in Bulgaria in the eleventh month of the year registered a decrease of 0.6% on a monthly basis after jumping 1.2% in October and registered an increase of 0.3% on an annual basis (compared to November 2013) after rising 0.8% in the previous month.
Source: money.bg (30.12.2014)