Bulgaria: Economy accelerates in Q4
February 12, 2016
In the fourth quarter, the economy expanded 3.1% over the same period last year, according to preliminary data released on 12 February. The print overshot the 2.9% expansion tallied in the previous quarter and marked the strongest reading in almost five years. Q4’s result came on the back of a significant improvement in total consumption and fixed investment, which more than upset a downturn in the external sector’s contribution.
Private consumption recorded a 2.5% expansion in Q4 (Q3: 1.0% year-on-year). Fixed investment rebounded from a 0.4% drop in Q3 to a 1.4% rise in Q4, thus growing at the fastest rate in over a year.
On the external side of the economy, exports decelerated from a 5.8% expansion in Q3 to a mild 0.7% rise in Q4. Imports slowed from a 3.3% increase in Q3 to a 1.7% rise in Q4. As a result, the external sector’s net contribution to the economy swung from plus 1.4 percentage points in Q3 to minus 0.7 percentage points in Q4, which marked the worst reading in a year.
Author: Eric Denis , Economist