BULGARIAN NATIONAL BANK: BULGARIAN ECONOMY WILL STUMBLE AGAIN
Bulgaria's economic development will rely again on exports in order to produce growth by the end of 2014.The only chance for this is to restore the economic relations with foreign partners and therefore increase the demand for Bulgarian goods, the quarterly analytical edition of the Bulgarian National Bank says.
It is noteworthy that in the first quarter the growth in gross domestic product was due to increased domestic consumption and stocks, while Bulgaria's trade balance was negative. Due to political and economic instability, however, expectations for recovery in domestic consumption in the second half of the year are rather negative.
A major contributor to the decline in exports of goods and services for the first three months is the decrease in exports of goods from the "mineral fuels and products of their distillation" category. Another causeof the lack o optimism is the embargo of russia imposed on EU countries, thus Bulgaria as well.
Investment activity in January-March has seen an increase,. Attitudes about the improvement of the business climate in the first five months of the year were also optimistic. For the rest of the year, however this can not be said - the main reason for the increasingly negative outlook is the increased insecurity due to the parliamentary elections in October, the report says. The situation with the Corporate Commercial Bank will also contribute to the stumbling of theBulgarian economy in the next months.
Employment remained relatively low despite some weak increase in a few sectors. Household income from wages as a whole increased slightly. In the first quarter of 2014, average salary increased at a lower rate than in the previous quarters, both in nominal and in real terms. In the first quarter of 2014, higher wage growth was observed in sectors with low average wages, such as construction and agriculture, forestry and fisheries, as well as in professional, scientific, administrative and support activities. these were was less affected by the crisis. In some services, such as trade, transport, hotels and restaurants, as well as real estate transactions, gross wages fell on an annual basis.
Копирано от standartnews.comBulgaria's economic development will rely again on exports in order to produce growth by the end of 2014.The only chance for this is to restore the economic relations with foreign partners and therefore increase the demand for Bulgarian goods, the quarterly analytical edition of the Bulgarian National Bank says.
It is noteworthy that in the first quarter the growth in gross domestic product was due to increased domestic consumption and stocks, while Bulgaria's trade balance was negative. Due to political and economic instability, however, expectations for recovery in domestic consumption in the second half of the year are rather negative.
A major contributor to the decline in exports of goods and services for the first three months is the decrease in exports of goods from the "mineral fuels and products of their distillation" category. Another causeof the lack o optimism is the embargo of russia imposed on EU countries, thus Bulgaria as well.
Investment activity in January-March has seen an increase,. Attitudes about the improvement of the business climate in the first five months of the year were also optimistic. For the rest of the year, however this can not be said - the main reason for the increasingly negative outlook is the increased insecurity due to the parliamentary elections in October, the report says. The situation with the Corporate Commercial Bank will also contribute to the stumbling of theBulgarian economy in the next months.
Employment remained relatively low despite some weak increase in a few sectors. Household income from wages as a whole increased slightly. In the first quarter of 2014, average salary increased at a lower rate than in the previous quarters, both in nominal and in real terms. In the first quarter of 2014, higher wage growth was observed in sectors with low average wages, such as construction and agriculture, forestry and fisheries, as well as in professional, scientific, administrative and support activities. these were was less affected by the crisis. In some services, such as trade, transport, hotels and restaurants, as well as real estate transactions, gross wages fell on an annual basis.
