Bulgaria: Economy slows in Q3
November 14, 2014
In the third quarter, the economy expanded 1.6% over the same period last year according to preliminary data released on 14 November. The figure was down from the 1.8% expansion tallied in the previous quarter. The slowdown in Q3 was driven by a deterioration in the external sector.
On the domestic side, final consumption growth accelerated from a 1.2% increase in Q2 to a 1.4% rise in Q3. However, fixed investment decelerated, growing 4.2% in Q3 compared to 5.1% in Q2 and marking the lowest reading in three quarters.
On the external side of the economy, exports contracted 2.4% over the same quarter last year, which contrasted the 3.0% expansion recorded in Q2 and marked the steepest decrease since Q3 2009. Growth in imports slowed from 3.7% in Q2 to 1.0% in Q3. As a result, the external sector’s net contribution to the economy deteriorated from minus 0.7 percentage points in Q2 to minus 2.5 percentage points in Q3.
On a quarterly basis, the economy grew 0.5% in the third quarter, which was up from the 0.3% rise recorded in the previous quarter.