Bulgaria: Economy accelerates on stronger exports in Q2
August 14, 2014
In the second quarter, the economy expanded 1.6% over the same period last year according to preliminary data released on 14 August. The figure was up from the 1.2% expansion tallied in the previous quarter. Q2’s reading was mostly driven by an improvement in external demand.
Total consumption growth decelerated from a 3.0% increase in Q1 to a 2.0% rise in Q2. Private consumption rose 1.9% (Q1: +1.8% year-on-year), while growth in government spending fell from 1.6% in Q1 to a 0.3% in Q2. However, fixed investment rose 3.9% (Q1: +3.4% yoy), which marked the fastest growth pace since Q1 2009.
On the external side of the economy, exports accelerated from a 1.5% increase in Q1 to a 2.9% rise in Q2. Conversely, growth in imports slowed from 6.3% in Q1 to 1.0% in Q2. As a result, the external sector’s net contribution to the economy rebounded from minus 3.6 percentage points in Q1 to plus 1.2 percentage points in Q2, the highest level in three quarters.
On a quarterly basis, the economy grew 0.5% in the second quarter, which was up from the revised 0.3% rise recorded in the previous quarter (previously reported: +0.2% quarter-on-quarter).
Author: Dirina Mançellari, Senior Economist