Bulgarian economic growth accelerates to 2.1%

The Bulgarian National Statistical Institute (NSI) reported a slight increase of 0.1 points in the growth of the country’s gross domestic product for the second quarter. That quarter’s level of 2.1% represents a timid acceleration in economic growth compared to the first quarter.

The drivers of growth are household and corporate consumption (collectively called individual consumption) and investments. Individual consumption grew by 3.1% in the second quarter, driven by rising incomes. More detailed NSI data shows that since the end of 2022, individual consumption has been growing at a faster rate than public consumption (state spending).

The increasing incomes are a factor for the faster individual consumption growth. Wages in the previous quarters grew by a double-digit percentage. Public consumption, which represents state and municipal spending, grew by 1%. It has been affected by the political instability and frequent change in governments.

Gross capital formation (investments) in Bulgaria grew by 3.2%. Exports of goods and services decreased by 0.3%, while imports grew by 4.9%.

NSI maintained a GDP growth prognosis on a quarterly basis at 0.5%.

Translated by Tzvetozar Vincent Iolov