UBB Chief Economist Emil Kalchev said Bulgaria’s economy maintained steady growth in the first half of the year, posting real growth of 2.8% year-on-year. He analysed key trends in the national economy based on the latest data from the National Statistical Institute.
Kalchev’s analysis was included in a statement issued by the bank on Monday.
On the demand side, economic activity continued to be driven mainly by final consumption, which grew by 7.1% in real terms year-on-year and accounted for 85.5% of GDP. Investment increased by 7.2% year-on-year and, despite its significantly smaller share of 17.5% of GDP, also made a notable contribution to economic growth, Kalchev said.
Exports contracted by 4.7% year-on-year, while imports again increased significantly, by 8.5%. As a result, the negative contribution of net exports offset part of the positive effects of consumption and investment on GDP, he said, as quoted by UBB’s press office.
On the production side, growth was driven mainly by construction and services. Construction recorded the highest growth rate, increasing by 4% year-on-year in inflation-adjusted terms. Services grew by 3.7% and, due to their dominant 65% share of GDP, remained the main driver of economic growth. Agriculture grew at a more moderate rate of 2.9%, with its contribution to economic activity limited by its relatively small 2.5% share of GDP, according to Kalchev.
Industry contracted further, declining by 4.4% and reducing its share of GDP to 14.4%.
After falling to 4.4% year-on-year in July, harmonized inflation rose again to 5% in August. Consumer inflation under the national methodology also accelerated to 5.1%, compared with 4.5% in July.
The largest increase in prices was recorded in transport, where inflationary pressure reached 13.8% year-on-year, up from 9.4% in July. Prices of restaurant and hotel services increased by 8.3% in August, compared with 6.7% in July.
According to Kalchev, shocks from high global oil and gas prices are expected to continue keeping price growth relatively high.
Bulgaria’s Economy Maintains Steady Growth in H1, Inflation to Remain Relatively High, Says UBB Chief Economist THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-09-21 13:09:12
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