Bulgaria’s Retail Sales Rise for Ninth Straight Month as Production Prices Decline

SOFIA/LUXEMBOURG – According to the latest data from Eurostat, the European statistical service, retail trade volume in the EU saw an annual increase of 0.7 percent for food, beverages, and tobacco, a rise of 3 percent for non-food items, and a 0.6 percent uptick for automotive fuels sold in specialized stores.

Retail trade is experiencing the most significant growth in Luxembourg (15.4 percent), followed by Romania (10.2 percent) and Croatia (6.7 percent). Conversely, the countries witnessing the largest declines are Finland (2.9 percent), Belgium (2.5 percent), and Estonia (1.6 percent). Notably, in Bulgaria, retail sales have increased for the ninth consecutive month, marking a 5.1 percent rise in October, following a 4.8 percent increase in September.

The Bulgarian economy is growing at approximately 2.2 percent, a clear sign of progress, according to acting Minister of Economy and Industry Petko Nikolov. He highlighted that this growth aligns with forecasts from the European Commission, placing Bulgaria among the top five or six countries in the EU statistically.

Eurostat also reported a 0.4 percent monthly increase in producer prices across the EU in October, following a 0.6 percent decrease in September. Year-over-year, prices have decreased by 3 percent in the EU as of October 2023.

Among the nations reporting data, the largest monthly increases in producer prices were observed in Estonia and Italy (each recording a rise of 1 percent), followed by France (+0.9 percent) and Sweden (+0.8 percent). In contrast, Bulgaria saw the largest decrease (-2.9 percent), joined by Slovakia (-2 percent) and Romania (-1.5 percent).

Bulgaria is on track to meet the criteria for joining the eurozone, as it currently only falls short on the price stability criterion, as noted by the European Central Bank and the European Commission. In late July, the National Assembly accelerated efforts to prepare for euro adoption and fulfill the necessary requirements. The government is expected to request extraordinary reports within two weeks after meeting the final criterion. A bill passed by the National Assembly in August stipulates that the specific date for adopting the euro and the official exchange rate of the Bulgarian lev to the euro will be determined by unanimous decision of the EU Council. (December 4)