Bulgaria: Economic growth moderates in the second quarter
September 6, 2011
In the second quarter, GDP increased a seasonally and working-day adjusted 2.0% over the same period the previous year, according to revised data published by the National Statistical Institute on 6 September. The reading came in a notch above the 12 August preliminary estimate of a 1.9% rise but was below the 3.3% expansion registered in the first quarter. On a quarterly basis, GDP rose 0.3%, up from the 0.1% expansion reported in the previous estimate (Q1: +0.5% quarter-on-quarter). The quarterly reading reflected a weaker external sector, whereas domestic demand improved amid stronger fixed investment. Private consumption increased 1.4% yoy (Q1: +1.5% yoy) while gross fixed investment surged to an 8.4% expansion (Q1: +1.6% yoy). On the other hand, the net contribution from the external sector to overall economic growth deteriorated sharply. Exports of goods and services slowed to a 12.2% expansion, which came in well below the 21.6% increase seen in the first quarter. Meanwhile, imports moderated slightly from a 10.0% expansion in the first quarter to a 7.5% print in the second. The government expects the economy to expand 3.6% this year and 4.1% in 2012.