Short-term business statistics showed some positive developments, as all of its components developed on positive territory in April. Only the overall business climate indicator deteriorated somewhat as of June, yet respondents of the survey saw an improvement in the business conjuncture in industry.
The registered unemployment continued on the decrease, as the jobless rate narrowed further to 10.7% as of June. May consumer prices practically showed no change over the previous month, while annual HICP stepped up marginally to 1% yoy.
The overall balance of payments came in positive in April with both Current and Financial accounts contributing to the surplus. CA remained on a surplus for a second month in a row, largely on the account of improving trade balance.
Consolidated budget surplus stood at 0.1% of GDP on a cash basis in the first five months of the year. Budget outturn came below its level during the corresponding period a year earlier, mainly as a result of higher expenditure and slower revenue growth.
Fitch Ratings has affirmed Bulgaria's long-term foreign and local currency Issuer Default Ratings (IDR) at 'BBB-' and 'BBB', respectively. The outlook on both ratings is stable. General government debt, which is the second-lowest in the EU, and well below the 'BBB' 10-year category median, has been cited among key rating drivers. The stable outlook reflected Fitch's assessment that upside and downside risks to the rating are currently well balanced. Nonetheless, a material deterioration in growth prospects and fiscal performance could lead to a negative rating action, while the implementation of key structural reforms, leading to stronger sustainable economic growth, could prompt a positive rating action in the medium term.
You can read The June Issue here.
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The issue of Recent Economic Developments Review is based on materials and statistical data received up to July 5, 2013. Contents of the Monthly Report on Bulgarian Economy may be quoted or reproduced without further permission, however, due acknowledgment is requested. The estimates and projections published in this issue should not be regarded as advice or recommendation.