Bulgaria: Private consumption continues to support weak growth
September 5, 2012
In the second quarter, GDP expanded 0.5% over the same period the year before, which was in line with the 14 August preliminary estimate, and matched the expansion seen in the first quarter. The quarterly reading reflected how a further deterioration in the external sector was offset by stronger growth in private consumption. Private consumption accelerated from a 1.5% increase seen in the previous quarter to a 3.2% expansion. Meanwhile, gross fixed capital formation dropped 2.1% year-on-year, which nonetheless represented an improvement over the 5.4% decline recorded in the first quarter. The external sector, which had driven growth in the past, deteriorated markedly as imports outpaced exports. Exports of goods and services rebounded to a 3.9% expansion over the same period last year (Q1: -0.1% yoy), while imports surged 8.6% (Q1: 0.0% yoy). On a quarter-on-quarter basis, GDP added 0.3% in seasonally and working-day adjusted terms, which followed the flat growth seen in the previous quarter.