The latest issue of the Monthly Report on Bulgarian Economy was published. It assesses the short-term dynamic of main economic indicators, with data published up to 16 July 2021.
Short-term Business Statistics
In May the growth of short-term indicators slowed down slightly. Industrial production increased by 15.1% compared to May 2020, as growth continued to be driven by anufacture of motor vehicles, trailers and semi-trailers; manufacture of machinery and equipment; manufacture of metal products. The industrial turnover of export of basic metals and energy goods increased, while electricity, gas, steam and air conditioning supply had the major contribution to domestic turnover growth. The growth of construction production slowed down significantly and a decline was registered in building construction. At the same time, the growth of retail trade turnover was 24% with increasing contribution of retail sale of food, beverages and tobacco.
In June the business climate indicator posted a decrease compared to May, while the consumer confidence improved on the back of better expectations for the economic situation in the country. The expectations of the respondents in industry about the future business situation of enterprises and the future production tendency worsened. At the same time, the demand for services and sales in retail trade increased.
Labour market
According to the Employment Agency data, the number of registered unemployed was 170 716 at the end of June. The data on the registered unemployed in the country, the dynamics of the vaccination process, and the scope of the shortterm programmes for the preservation of employment.
Inflation
The monthly HICP inflation rate was 0% in June. Food prices decreased by 0.8% on average mainly on the account of cheaper vegetables and fruits during the summer season, while prices of processed food posted a minor increase. The negative contribution of foodstuffs subcomponent was almost entirely compensated by higher prices for accommodation, up by 4.1%, catering services, up by 0.5% and transport fuels, also up by 0.5%. The administered price for gas supply has been increased by 11.1%.
The annual HICP inflation rate accelerated marginally to 2.4% in June, largely on the account of the increase in prices of energy and transport fuels in particular, as the latter reached 24% yoy. Core inflation on the other hand decelerated by 0.1 pp to 1.4% mainly due to the services subcomponent.
The document can be downloaded here.
Source: Ministry of Finance