site.btaEconomic Activity Growth Slows Considerably in Second Quarter of 2015

Economic Activity Growth Slows Considerably in Second Quarter of 2015

Sofia, October 5 (BTA) - Bulgaria's Economic Activity Indicator
(EAI) recorded positive growth in the second quarter of 2015,
but it was far slower compared with the first quarter of 2015,
the Finance Ministry reported on Monday.

EAI gives a general idea about the current condition of the
Bulgarian economy. It is based on 15 macroeconomic variables
measuring changes in the internal and external economic
environment.

VAT revenues and the overall business climate had the biggest
impact. The EAI change corresponds to the pace of GDP growth,
which has slowed down to 2.4 per cent in real terms. Unlike in
the first quarter of 2015, the external sector had a more
limited effect on GDP growth in the second quarter. Internal
demand was influenced by increasing investments and government
consumption, while household expenses rose more slowly than in
the previous quarter.

In the second quarter of 2015 compared with the second quarter
of 2014, VAT revenues increased by 5.8 per cent in nominal
terms, compared with 21.8 per cent in the first quarter. Retail
trade growth slowed to 1.3 per cent, while the construction
sector recorded a decrease by 1.6 per cent. Long-term loan
interest rates decreased at a slower pace.

The industrial production index rose by 4.3 per cent in the
second quarter of 2015 compared with the second quarter of 2014.

Bulgarian exports to other EU countries continued to increase,
which had a positive impact on export-oriented industries.

Falling international prices of oil and non-energy materials did
 not have a strong influence on economic activity in Bulgaria,
the Finance Ministry said.