Bulgaria's economy shrank by a real 4.8 per cent year-on-year in the second quarter of 2009 and 4.2 per cent year-on-year for the first half of the year, the country's National Statistics Institute (NSI) said in a flash estimate on August 17. In the first quarter, the gross domestic product (GDP) was 3.5 per cent down compared to the same period of 2008.

In absolute terms, second-quarter GDP was 13.1 billion leva and first-half GDP was 29.8 billion leva.

In 2008, the Bulgarian economy grew by 7.1 per cent in the second quarter and the first half of the year, buoyed by the momentum accumulated during years of cheaply-available credit. The country officially entered a recession in the first quarter of 2009

The biggest decline was posted by the industry, which shrank by 9.8 per cent year-on-year in April-June and 11 per cent year-on-year for the first half of the year. The agriculture sector shrank by 6.6 per cent and six per cent, respectively. The services sector posted an annual increase of 0.3 per cent in the second quarter and 1.3 per cent for the first half, NSI said in a statement.

Consumption, which was one of the main drivers of economic growth in recent years, was down an annual 6.3 per cent for the quarter and 14 per cent in the first half. Investment was down 13.9 per cent and 14 per cent, respectively.

Exports shrank by 18.8 per cent year-on-year for the quarter and 18.2 per cent for January-June, while imports were down by an annual 26.9 per cent and 24.2 per cent, respectively. Nevertheless, Bulgaria still had a trade gap of 1.86 billion leva for the second quarter, a decrease of 11.8 per cent year-on-year, and 4.25 billion leva for the first half of the year, down by 14.2 per cent year-on-year.

NSI's flash estimates, which were launched in 2008, are based on limited data and are subject to revision. The statistics board is scheduled to publish detailed data for second-quarter and first-half economic growth on September 10.