Industrial Output Grows by 1,5% in Bulgaria Y/Y

 In May 2021, industrial production in Bulgaria grew by 15.1 per cent compared to May 2020, reads the latest Monthly Report on Bulgarian Economy released by the Economy Ministry on Thursday. Growth continued to be driven by the manufacture  of  motor  vehicles, trailers  and   semi-trailers, of machinery and equipment, and of metal   products.

The report, elaborated by the Economic and Financial Policy Department, presents the latest developments of main macroeconomic indicators based on statistical data as at July 16.

In May 2021 year-on-year, the industrial  turnover from the export  of  basic  metals  and  energy  goods increased, while
electricity, gas, steam and air conditioning supply contributed the most to domestic turnover growth. The growth in construction
 production  slowed down significantly and a decline was registered in building construction. At the same time,  the   growth of  retail  trade  turnover was 24 per cent, with an increasing contribution of retail sale of food, beverages and tobacco.

According  to the  National Employment  Agency’s data, the registered  unemployed numbered 170,716 at the end of June,
similarly to the same month of 2018 and 2019, which is a historic low for this parameter so far. The Finance Ministry’s
analysts expect the downward trend in the dynamics  of  the registered  unemployed to continue in July, followed by a
reversal of the trend in the fall months, mostly due to seasonal factors.
     
In June, the monthly Harmonised Indices of Consumer Prices (HICP) inflation rate was 0 per cent, while the  annual HICP
inflation rate accelerated marginally to 2.4 per cent largely yjnks to the increase in prices of energy and transport
 fuels in particular, as the latter reached 24 per cent year-on-year. Core inflation decelerated by 0.1 percentage points to 1.4 per cent.

The  rising  international  prices continued to push up nominal growth in trade with goods in April. Export and import increased
 by  49.6 per cent and 56 per cent, respectively, from April 2020. Trade with the EU had the highest contribution to the nominal growth.
 
Gross  external debt  reached  59.1 per cent  of projected GDP at end-April. It increased by  0.5 percentage points from  a  
month  earlier, driven mostly by higher short-term bank credit.

Private  sector  credit  growth  accelerated  further  in  May,  up  by  6.4 per cent year-on-year, compared to an annual increase by 6.1 per cent at the end of April.

At еnd-May,  a  deficit  of  0.1 per cent  of  projected  GDP  was  reported  on  the  Consolidated Fiscal Program (CFP). In January-May 2021, CFP receipts increased by 16.1per cent year-on-year.   
 
At end-May, government debt amounted  to  24.5 per cent of   projected  GDP, compared to 21 per cent of GDP a year earlier/BTA  
 
   
RY/DS