Economic Shift: Bulgaria's Business Climate Slumps in December

Business | December 30, 2023, Saturday // 09:11
Bulgaria: Economic Shift: Bulgaria's Business Climate Slumps in December Photo: Stella Ivanova

Bulgaria faces a challenging turn in its business climate as December reports unveil a decline in the total business climate indicator by 1.8 percentage points (pps), dropping to 19.8% from November's 21.6%. The National Statistical Institute highlighted a downturn primarily impacting construction, retail trade, and services sectors.

Industry Holds Steady but Faces Hurdles

In the industry sector, the business climate indicator maintained stability at 20.7%. While entrepreneurs deemed current production activity favorable, their anticipation for the coming months saw a slight dip. The scarcity of labor and a nebulous economic environment posed persistent challenges.

Construction Shows Reservations Despite Some Optimism

Contrary to slight improvements in forecasts for the next six months and construction activity in the following three months, the business climate in construction saw a decline to 22.4%. The uncertain economic climate, material costs, and labor shortages continue to hinder the sector.

Retail Trade Faces Shifting Tides

Retail trade witnessed a significant drop of 5.6 pps, with assessments and expectations transitioning from 'good' to 'unchanged.' Anticipations for sales volumes and supplier orders in the next three months remained conservative. Economic ambiguity and intense competition stood as predominant challenges.

Service Sector Treading on Challenging Ground

The service sector's composite indicator plummeted to 13.4%, impacted by unfavorable assessments and expectations. Despite a slight improvement in demand forecasts for the next three months, the uncertain economic landscape, competition, and labor scarcities constrained business activity.

These fluctuations across key sectors indicate a challenging economic landscape in Bulgaria as various industries grapple with impediments, signaling a need for strategic measures to revitalize growth.

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Tags: Bulgaria, business, economic, industry

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