- Political stability
- Fiscal affairs
- Monetary policy
- Regulated markets
- Privatisation
- Macroeconomic developments
Personal assets in Bulgaria, Q1 2010
submited on 16.03.2010 in category Political stability | Fiscal affairs | Monetary policy | Regulated markets | Privatisation | Macroeconomic developments
Under rising uncertainty about employment and income in the context of the still high real interest rate on deposits the saving rate in Bulgaria reached 20% of GDP by the end of 2009, compared with 16% in 2008. Bulgarians have 59 thousand deposits in banks, in excess of 50 000 leva, as their total sum amounted to 6.9 billion (or 28% of all household deposits). The process of saving accumulation was coupled with reduction in total indebtedness of households.
Indicators for sustainability of the currency board improved in 2009, while household confidence in the soundness of the banking system increased further.
The pace at which residential properties in regional cities are depreciating slowed down to only 2% at the end of 2009 compared with the previous (third) quarter. Thus, for the first time since the beginning of the recession in Bulgaria total household wealth (financial and housing) increased - by BGN 1.1 billion to BGN 140 billion at the end of 2009.
Although housing prices are still falling, the negative growth rate has been decelerating for a fourth consecutive quarter. According to the official statistics Varna, with average prices of 860 euros per square meter, is the city with the most expensive housing, ahead of Sofia and Bourgas.
Households with higher income and secure job have better opportunities to buy a new home. Purchasing power of the average wage, measured in squared meters residential area increased by 50% in 2009.
Bulgaria is among the countries with the lowest living area per capita in Europe - about 18 square meters per person in cities, which is nearly two times less than the EU average. This is why the Bulgaria housing market has considerable growth potential in the medium term.
submited on 16.03.2010 in category Political stability | Fiscal affairs | Monetary policy | Regulated markets | Privatisation | Macroeconomic developments
Under rising uncertainty about employment and income in the context of the still high real interest rate on deposits the saving rate in Bulgaria reached 20% of GDP by the end of 2009, compared with 16% in 2008. Bulgarians have 59 thousand deposits in banks, in excess of 50 000 leva, as their total sum amounted to 6.9 billion (or 28% of all household deposits). The process of saving accumulation was coupled with reduction in total indebtedness of households.
Indicators for sustainability of the currency board improved in 2009, while household confidence in the soundness of the banking system increased further.
The pace at which residential properties in regional cities are depreciating slowed down to only 2% at the end of 2009 compared with the previous (third) quarter. Thus, for the first time since the beginning of the recession in Bulgaria total household wealth (financial and housing) increased - by BGN 1.1 billion to BGN 140 billion at the end of 2009.
Although housing prices are still falling, the negative growth rate has been decelerating for a fourth consecutive quarter. According to the official statistics Varna, with average prices of 860 euros per square meter, is the city with the most expensive housing, ahead of Sofia and Bourgas.
Households with higher income and secure job have better opportunities to buy a new home. Purchasing power of the average wage, measured in squared meters residential area increased by 50% in 2009.
Bulgaria is among the countries with the lowest living area per capita in Europe - about 18 square meters per person in cities, which is nearly two times less than the EU average. This is why the Bulgaria housing market has considerable growth potential in the medium term.
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