The outgoing-government’s CEDB scored a narrow victory in the early parliamentary elections held in Bulgaria on May 12. The European Commission, the EBRD and the IMF all lowered their forecasts of Bulgaria’s GDP growth in 2013, to 0.9%, 1% and 1.2%, respectively. Both CPI and PPI inflation slowed down in March. Industrial production, retail sales and construction output declined in March, and the business climate indicator continued to fall in April.
The unemployment rate edged up to 12.6% in March and remained considerably above the unemployment rate in the EU27 - 10.9%, Eurostat data showed. Bulgaria's general government budget deficit rose 15.8% year on year to BGN 796mn (EUR 407mn) in Q1 2013. The fiscal reserve is not at risk and will withstand the repayment of BGN 600mn domestic bonds due in August, finance minister Kalin Hristov said in an interview for BTA in the second half of April.
Bulgaria’s current account gap narrowed to EUR 376.8mn in the first two months of 2013 from EUR 606.5mn a year earlier.
Release Date: Mon, 13 May 2013