BICA: WE EXPECT SOME 10-15% DECLINE IN INDUSTRIAL PRODUCTION BY THE END OF 2012
The Bulgarian Industrial Capital Association (BICA) expects some 10-15% decline in industrial production in the second half of 2012.
In an interview for Darik Radio on Monday, BICA Chairman Vasil Velev said that a negative trend will be reported in the second half of 2012, compared to both the first six months of the year and to the same period of 2011. Velev specified some serious problems for businesses: the delayed payments on the part of the State and the unrealistically high minimum insurance thresholds agreed in some branches. A decline will be strongly felt as well in the export-oriented companies.
According to Velev, 2012 is like 2008 when it was not known whether the decline in sales during the summer was due to the Olympics or if there was a crisis, but when people came back from holidays, it turned out it was a crisis.
It is still too early to give such an assessment because a great part of businesses’ counterparties do not work in August - a trend which was characteristic of Italy and Spain and expanded its scope to France and Germany.
Asked whether a similar analogy could be made between 2013 and the difficult 2009, Velev replied: “We hope there will not be such a steep decline, but it is too early to say for certain. We must be ready for a serious decrease, especially in industry”.