Bulgaria: Economy accelerates slightly in Q2
September 5, 2016
Revised data released on 5 September confirmed that the economy expanded 3.0% over the same period last year in Q2. 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 1.8% expansion in Q2 (Q1: +2.1% year-on-year). Private consumption grew 3.2% (Q1: +3.7% year-on-year) while government consumption shrank 3.2% (Q1: -4.4% year-on-year). Fixed investment worsened from a 3.9% contraction in Q1 to a 4.4% decrease in Q2, which marked the steepest fall since Q2 2011.
On the external side of the economy, exports improved from a 0.3% expansion in Q1 to a 2.4% increase in Q2. Imports swung from a 1.3% decrease in Q1 to a 3.4% 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 0.7 percentage points in Q2, which was the worst result since Q4 2014.
Author: Luis Lopez Vivas, Economist