Bulgaria: Economy accelerates slightly in Q2
August 12, 2016
In the second quarter, the economy expanded 3.0% over the same period last year, according to preliminary data released on 12 August. The print came in slightly above the 2.9% increase in the previous quarter. Q2’s result mainly came on the back of an expansion in total consumption, which partly offset a deceleration in fixed investment.
Total consumption recorded a 2.0% expansion in Q2 (Q1: +2.1% year-on-year). Conversely, fixed investment worsened from a 3.9% contraction in Q1 to a 4.5% decrease in Q2, marking the steepest fall since Q2 2011.
On the external side of the economy, exports improved from a 0.3% expansion in Q1 to a 2.0% increase in Q2. Imports swung from a 1.3% decrease in Q1 to a 2.2% increase in Q2. As a result, the external sector’s net contribution to economic growth declined from 1.0 percentage point in Q1 to minus 0.1 percentage points in Q2, which was the worst result since Q4 2014.
Author: Luis Lopez Vivas, Economist