Bulgarian GDP growth rate slows down

In the fourth quarter of 2012 Bulgaria’s GDP at current prices grew by 0.5% compared to Q4 2011, and remained at the same level compared to the third quarter of 2012, according to Bulgaria’s National Statistical Institute.

Bulgaria’s GDP for 2012 in real terms increased by 0.8% compared to 2011 or around half as much as it did in 2011 (1.8%), and was almost four times lower compared to the government’s forecast (2.9%). The main factor that slowed down Bulgaria’s growth is the euro area crisis and its impact upon Bulgarian economy. Another negative conclusion from the data is that the rise of investments in 2012 was insufficient, while it could be even weaker in 2013 due to political instability.

According to Eurostat data the GDP of the EU and euro area dropped by 0.6% and 0.9% respectively in Q4 2012 compared to the same period of 2011. As most EU members are in recession Bulgaria still occupies a position high in the EU ranking despite low growth.

Source: novinite