site.btaIndustrial Association President: Bulgarian Consumers Will Feel Prices Drop in Mid-February

Consumers in Bulgaria will feel tangibly the drop in prices of goods and services after mid-February, Bulgarian Industrial Association President Dobri Mitrev said in a BTA interview. In early December 2022, employer organizations urged businesses to take measures to contain the price growth and make sure the electricity compensations for non-household consumers are reflected in their prices.

Inflation has already slowed down and with the new energy compensations in effect from January 1, businesses can expect to get the first lower energy bills in mid-February. From then on, they should pass on the trend to consumers through the price of their goods and services, said Mitrev.

Throughout 2023, non-household consumers will receive compensations equal to 100% of the price they pay for electricity purchased on the day-ahead segment of the Independent Energy Exchange above a base price of BGN 100/MWh.

Mitrev says though that it is difficult to predict an average drop in prices due to the fact that the weight of electricity in pricing varies from one product or service to another.

Bulgaria currently has a low level of unemployment, among the lowest ever, and for this reason labour shortage is reported across the board, the BIA President said. "An economy working at a pace as the current one, a heightened demand for qualified workers is expected to be seen in the IT industry, electronics, machine building, metallurgy and the chemical industry. Increased demand is also expected for unqualified workers," he said.

He reiterated the calls for employer organizations for opening up the labour market to workers from outside the EU "because the vacancies left after the exodus of Bulgarian workers need to be filled".

According to Mitrev, the shortage of labour adds up to some 200,000 at present.

He laments that Bulgaria has failed to keep Ukrainians and the vast majority chose countries "close to the Federal Republic" including Poland and Slovakia. The majority of those who chose to stay in Bulgaria are older people and mothers with young children.

"Businesses in Bulgaria need predictability and strong government government with a long horizon, so as it can plan its costs and businesses and investment environment. That can be achieved when we have a regular government backed by a parliamentary majority that supports its policies for a long period of time," Mitrev commented.