Bulgaria: Economy expands at fastest pace in almost three years in Q2
September 3, 2014
In the second quarter, the economy expanded 1.6% over the same period last year according to more detailed data released on 3 September, which matched the preliminary estimate. The reading was above the 1.2% expansion tallied in the previous quarter and marked the highest growth rate in almost three years. Q2’s reading was largely driven by an improvement in the external sector, while domestic demand decelerated compared to the previous quarter.
Private consumption decelerated to a 1.6% expansion (Q1: +1.8% year-on-year) and government spending slowed from a 1.6% increase in Q1 to a 0.8% rise in Q2. In contrast, fixed investment rose 3.9% (Q1: +3.4% yoy), which marked the fastest growth rate since Q1 2009.
On the external side of the economy, exports grew from a 1.5% rise in Q1 to a 3.9% increase in Q2. In addition, imports slowed from a 6.3% increase in Q1 to a 3.4% rise in Q2, which marked a year low. As a result, the external sector’s net contribution to the economy rebounded from minus 3.6 percentage points in Q1 to a plus 0.1 percentage points in Q2.