Bulgaria: NSI Reports Worsening Business Climate in November

In November 2020, the economic situation in the country deteriorated for the first time after six consecutive months of improvement, according to the latest survey of the National Statistical Institute (NSI).

The deterioration of the business climate in November was most pronounced in construction and retail with some stabilization in industry and services, with the weakening of the country's business situation due to the second wave of Coronavirus pandemic, which led to the introduction of new strict restrictive measures throughout Europe and later in November in our country as well.

The overall business climate index was down by 4.1 points in November after rising 0.5 percentage points in October, the first downgrade in six months when there was a sustained recovery following the collapses in March and April during the first wave of Coronavirus pandemics that led to a lockdown in our country.

At that time, the business climate index collapsed dramatically by nearly 50 points, approaching just 4.4 points from its record low in April 1997, when the financial and economic crisis blamed on the Videnov cabinet.

The index determining the business climate in industry remained at approximately the same level in November compared to the previous month, when it decreased by 1.3 points, with the latest NSI survey reporting a slight decrease in current production activity, while the expectations of industrial entrepreneurs for the activity over the next three months are more moderate.

A major factor hampering the development of this sector is still linked to the uncertain economic environment, followed by insufficient demand from abroad and other factors.

In terms of sales prices, industry managers do not...