Bulgaria’s business climate indicator remained unchanged in August 2013 compared with July, which had been the first month this year since February to see an increase.
This emerges from figures released by the National Statistical Institute on August 28.
In February 2013, the business climate indicator rose by 5.7 percentage points. But the following months all saw declines – 1.8 percentage points in March, 0.6 in April, 1.1 in May and 0.7 in June. July 2013 saw an increase of 1.4 percentage points.
This pattern appears to track the political turmoil of the year, from the “cost of living” protests in February, the resignation of the Borissov centre-right government that took effect in mid-March, and the May elections that resulted in the second-ranked Bulgarian Socialist Party coming to power.
The National Statistical Institute said that in August 2013, the overall business climate indicator kept the same level as in July, with a reduction among the indicators seen only in industry.
The composite indicator “business climate in industry” decreased by 4.7 percentage points in
comparison with July because of more moderate assessments and expectations among managers about the business situation of enterprises.
At the same time, present production activity was assessed as slightly improved, but expectations about the next three months were more reserved, according to the NSI.
“The main obstacles for business development in the branch remain the uncertain economic environment and insufficient domestic demand, pointed out respectively by 57.2 per cent and 45.1 per cent of the industrial entrepreneurs,” the institute said.
(Photo: Vangelis Thomaidis)