Bulgaria: Economy expands in Q1 2015 at fastest pace in almost four years
June 5, 2015
In the first quarter of 2015, the economy expanded 2.0% over the same period of the previous year, according to more detailed data released on 5 June. The print was in line with the preliminary estimate. The reading was above the 1.3% expansion tallied in the previous quarter and marked the highest growth rate since Q2 2011.
Q1’s result came largely on the back of an improvement in the external sector, while domestic demand weakened. Private consumption recorded a 0.3% expansion (Q4: +0.9% year-on-year) and government spending rose 0.7% in Q1 (Q4: +1.6% yoy). In addition, fixed investment decelerated from a 3.3% increase in Q4 to a 2.1% rise in Q1.
On the external side of the economy, exports jumped from a 5.4% expansion in Q4 to a 12.9% rise in Q1, which marked the largest growth rate in almost four years. Imports accelerated from a 7.5% increase in Q4 to a 9.7% rise in Q1. As a result, the external sector’s net contribution to the economy rebounded from minus 1.4 percentage points in Q4 to plus 1.7 percentage points in Q1, the highest net contribution since Q4 2013.
Author: Eric Denis , Economist