Business cycle

Britain's economy rebounded slightly in January, data showed Wednesday, sparking hope of an end to recession in a boost to embattled Prime Minister Rishi Sunak ahead of elections.

Gross domestic product grew 0.2 percent following a slight 0.1-percent decline in December according to a statement from the Office for National Statistics (ONS).

Economic sentiment in both the European Union and Bulgaria experienced some turbulence in February, reflecting ongoing uncertainties surrounding economic recovery and global challenges. According to the latest monthly survey by the European Commission, while consumer sentiment showed marginal improvement, economic attitudes unexpectedly deteriorated.

China's central bank yesterday cut a key benchmark lending rate used to price mortgages, as Beijing seeks to rescue its housing market from a deepening crisis and boost flagging growth in the country's economy.

Greece's economic outlook has improved notably, but significant challenges remain, the IMF said in a report released on Wednesday.

The United Nations has issued a somber global economic forecast for 2024, pointing to challenges from escalating conflicts, sluggish global trade, persistently high interest rates and increasing climate disasters.

The forecasts of analysts of international organizations for the course of the global economy in 2023 were wrong. The interest rate hikes certainly had a negative impact on economic growth, but they did not force the US economy to make a "bumpy landing," nor did they plunge the European economy into recession.

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

Eurozone industrial production declined by more than expected in October, with the sharpest drop for capital goods such as machinery, reinforcing survey indications that the single-currency area is in a recession.

The steps taken within the scope of monetary tightening and the simplification of the macroprudential framework are showing their positive effects, Central Bank Governor Hafize Gaye Erkan has said.

Turkish government bonds are becoming more attractive following the Central Bank's monetary policy adjustment in recent months, BNP Paribas has said in a recent report.

Policy rates and local deposit rates have already adjusted sufficiently to provide positive ex-ante real rates versus inflation expectations, it said.