site.btaUncertain Economic Environment Remains Greatest Obstacle to Business Development - Analysis

Bulgaria's general business climate index rose by 1 point in December 2022 compared with November 2022, the National Statistical Institute (NSI) reported on Friday. This resulted from rising component indices for industry and retail trade, an unchanged component index for construction and a falling component index for services. The uncertain economic environment remains the most serious problem hindering business development in all sectors, NSI said.

The component index describing the business climate in industry went up by 2.5 points, month on month, thanks to more optimistic expectations of industrial entrepreneurs about the condition of their businesses in the next six months.

The component index describing the business climate in construction in December 2022 remained unchanged from November 2022. Construction entrepreneurs have reservations about the expected condition of their businesses in the next six months and their performance in the next three months.

The component index for retail trade increased by 0.7 points, mainly owing to retailers' more positive assessments of the present condition of their companies. Opinions about sales volumes over the last three months and expectations about the next three months are positive as well.

The component index describing the business climate in services went down by 1.1 points as a result of entrepreneurs' less positive assessments and expectations about the condition of their businesses. Opinions about current and future market demand for services are also more moderate.