The Bulgarian economy shrank by 10% in the second quarter compared to the first three months of the year and recorded its most dramatic annual decline of 8.5% since 1997.
The data from the National Institute of Statistics refer to the period of the strictest measures during the pandemic period, aimed at limiting the spread of COVID-19.
GDP fell in the second quarter of 2020 by 10% compared to the first three months, when it increased slightly by 0.3%. This is the worst financial quarter for Bulgaria in 25 years. For the second quarter, GDP amounted to over 14 billion euro or 2016 euro per capita.
Preliminary data from the ECI showed a decrease in domestic consumption of 2.1% compared to the first quarter, compared to a decrease of 0.1% in the previous quarter. On an annual basis, domestic consumption was 0.4% higher in the second quarter (below the 4.1% annual growth rate recorded in the first quarter).
Gross fixed capital formation contracted by 7.9% in the second quarter, compared to a decrease of 1.2% in the first three months of the year. On an annual basis, gross capital formation in April-June fell sharply, falling by 14.1% compared to the same period of 2019 (in the first quarter, the annual decline was 5.6%.)
Exports in the second quarter fell by 22.1%, while imports fell by 20.4%, but Bulgaria recorded a trade surplus of BGN 754.9 million or 2.8% of GDP. Compared to the second quarter of last year, exports fell by 19% and imports fell by 19.1%.
The Bulgarian government had set an economic growth target of 3.3% this year in the macroeconomic framework of the budget law, following the growth of 3.4% in 2019. The budget revision in April, which was necessary due to the economic crisis caused by the pandemic, did not change the growth target, but the European Commission’s summer forecast predicted that the Bulgarian economy would shrink by 7.1% this year./ibna