- Political stability
- Fiscal affairs
- Monetary policy
- Regulated markets
- Privatisation
- Macroeconomic developments
Car sales and retail trade during recession
submited on 15.04.2010 in category Monetary policy | Macroeconomic developments | Monetary policy | Regulated markets | Macroeconomic developments
Meanwhile, the slowdown of economic activity is visible not only from the decline of durables’ sales but also from the contraction of retail trade in general. The turnover of retail trade, excluding cars and motorcycles, fell by 9% y-o-y. However, food sales decreased only marginally, as food has low demand income elasticity. On the other hand, the turnover of information and computer technology equipment and apparel fell by 23% and 13% per annum, respectively. On the more positive note, there is a trend toward deceleration of the negative growth rates.
This slowdown of retail sales coincided with the expected opening of a few big shopping centers in the big Bulgarian cities. Expected to be delivered in 2010 are shopping malls in Sofia (2), Varna (2), Plovdiv (2), Stara Zagora (2), Pleven (1), Ruse (2) and Gabrovo (1). It is difficult to assess the viability of these projects relative to the underlying economic fundamentals, as most of them were planned or started during the pre-crisis period. Nevertheless, the currently depressed level of retail trade compared to last year’s will put additional financial strain on some of these projects, at least in the short run.
submited on 15.04.2010 in category Monetary policy | Macroeconomic developments | Monetary policy | Regulated markets | Macroeconomic developments
Meanwhile, the slowdown of economic activity is visible not only from the decline of durables’ sales but also from the contraction of retail trade in general. The turnover of retail trade, excluding cars and motorcycles, fell by 9% y-o-y. However, food sales decreased only marginally, as food has low demand income elasticity. On the other hand, the turnover of information and computer technology equipment and apparel fell by 23% and 13% per annum, respectively. On the more positive note, there is a trend toward deceleration of the negative growth rates.
This slowdown of retail sales coincided with the expected opening of a few big shopping centers in the big Bulgarian cities. Expected to be delivered in 2010 are shopping malls in Sofia (2), Varna (2), Plovdiv (2), Stara Zagora (2), Pleven (1), Ruse (2) and Gabrovo (1). It is difficult to assess the viability of these projects relative to the underlying economic fundamentals, as most of them were planned or started during the pre-crisis period. Nevertheless, the currently depressed level of retail trade compared to last year’s will put additional financial strain on some of these projects, at least in the short run.
What is your opinion about this article?
1 agreed
0 disagreed