-
CPI inflation in Bulgaria stays much higher than the one in the Eurozone. However we do no see any risk of that “overvaluation” of the local currency.
In Bulgaria, CPI inflation was 5.6% in the year to September, while in the Eurozone it was 2.3% (to August). CPI is a measure of nominal cost of living of the average citizen of Bulgaria rather than of the monetary inflation of the local currency.Meanwhile monetary inflation (measure through prices of industrial commodities and ... -
Corporate tax rate down to 10% in 2007
The ruling coalition agreed to a 1/3 reduction of the corporate tax rate. Effective from January 1st 2007, the rate will be 10%, from the current 15%. The vote in the budget and finance committee of the parliament was supported by opposition parties. The Ministry of Finance insisted on 12% rate, but the political consensus in th... -
Economic Growth Stays at 5.5% in the Year to June.
In Q2 2006 economic growth was 6.6% in real terms (on the basis of Q2 2005). The registered nominal growth (measured in euro) is significantly higher than previous periods due to the quick inflation of the euro - the reserve currency of Bulgarian lev.... -
Pension industry grows by 34% in the year to June.
Pension industry is currently among the most dynamic sectors in the economy despite heavy regulation and slow reform of the pay-as-you go system. By mid-2006 private funds manage some 640 mln euro, or 34% more than a year before.Employers reacted positively to the pension-tax cuts in 2006. Registered employment grows at a steady... -
Tax burden will most likely exceed 40% of GDP in 2006.
Budget surplus will again question the political goal of attaining a tax burden 40% of GDP. This goal has been set both in the mid-term budget forecast and in the agreement of the three-party coalition. If the tendency from the first six months remains the same, we can forecast an additional 1.2 billion BGN of revenues, which ... -
The fast inflation of the euro is resulting in higher than expected tax revenues in Bulgaria.
The current government was the first make bold to cut the most economically damaging tax – the obligatory security contributions in the state social funds. The results for the moment are positive – the revenues from contributions remained stable in nominal terms for the first five months of the year as this decision gave valuab... -
Exports as Growth Engine.
Please view full text in Bulgarian.... -
Economic growth in 2006 to be 5.3% according to Industry Watch poll of forecasters.
As an independent source of economic research and analysis Industry Watch presents regulars forecasts on Bulgaria’s economy, based on a poll of selected macroeconomists. The poll takes place twice a year (spring and fall). In the current spring poll we present the updated forecast for 2006 and a forecast for 2007. We expect the ...