Minimal growth of industrial production in Bulgaria in September on a monthly and annual basis, the National Statistical Institute (NSI) reported today. In the same month of last year, however, the statistics calculated a decline in industry, and on an annual basis it was double-digit, according to a reference in the NSI.
Industrial production index rises 1.2 percent in September 2024. compared to the previous month, according to the preliminary and seasonally adjusted data of the NSI published today. As of September 2023 an increase of 1 percent was registered in the calendar-adjusted index of industrial production.
A reference in NSI shows that in September 2023 the index of industrial production decreased by 2.7 percent on a monthly basis, and on an annual basis the decline was by 11.5 percent.
Compared to the previous month in September 2024. growth was recorded in the production and distribution of electricity and heat energy and gas – by 24.5 percent, in the mining industry – by 9.8 percent, and a decrease in the processing industry – by 1.3 percent. In September 2023 a decrease compared to the previous month was reported in the mining industry – by 3.2 percent, in the processing industry – by 3.1 percent, and in the production and distribution of electricity, heat and gas - by 0.5 percent.
On an annual basis in September 2024. an increase in industrial production, calculated from the calendar-adjusted data, was recorded in the mining industry – by 30.9 percent, in the production and distribution of electricity and heat energy and gas – by 13 percent, and a decrease in the processing industry – by 1.9 per hundred.
A reference in NSI indicates that the annual data for September 2023 showed a decline in industrial production in the production and distribution of electricity and heat energy and gas – by 31.8 percent, in the mining industry – by 17.2 percent, and in the processing industry – by 7.7 percent.
Monthly production indexes measure changes in the output of industrial enterprises. The indices do not measure the actual level of production, but estimate the average change in production between two time periods. For the evaluation of the indices, a representative observation of the enterprises of the industry is carried out, and the sample includes enterprises whose annual turnover exceeds 97 percent of the turnover of the entire industry.
Interview between Time.news Editor and Industrial Expert
Time.news Editor (T.N.E.): Good morning and thank you for joining us today! We have with us Dr. Maria Ivanova, an esteemed expert in industrial economics, to discuss the recent industrial production statistics released by Bulgaria’s National Statistical Institute. Dr. Ivanova, it’s always a pleasure to have you with us.
Dr. Maria Ivanova (D.M.I.): Good morning! It’s great to be here and talk about such an important topic.
T.N.E.: Let’s dive right in. The NSI reported a minimal growth in Bulgaria’s industrial production for September 2024, at 1.2% compared to August. Given the context of the previous year’s performance, how significant is this growth?
D.M.I.: The growth of 1.2% is indeed a positive indicator, especially when we consider that last year showed a sharp decline of 11.5% on an annual basis and a decrease of 2.7% month over month. It suggests that we are seeing a stabilization in the industry after a challenging period. The recovery, even if modest, is crucial for economic confidence.
T.N.E.: That’s a valid point. The statistics show an increase in specific sectors, particularly the production and distribution of electricity and heat energy, which grew by an impressive 24.5%. What does this imply about the energy sector in Bulgaria?
D.M.I.: This significant increase reflects a robust recovery in the energy sector, which is a vital component of the economy. It suggests that demand for energy has rebounded, possibly due to increased industrial activities or improved efficiency in production and distribution networks. However, it’s essential to monitor if this trend is sustainable in the longer term, especially considering environmental factors and energy consumption patterns.
T.N.E.: Absolutely. While the energy sector appears to be thriving, we saw a decrease of 1.3% in the processing industry. How concerning is this trend?
D.M.I.: The decline in the processing industry is indeed worrying. Processing industries often represent a significant part of a country’s industrial landscape, and a contraction could signal underlying issues such as lower demand, supply chain disruptions, or even competitiveness challenges. It will be essential to analyze the reasons behind this decrease—whether they are temporary fluctuations or indicative of more profound structural issues.
T.N.E.: Interesting insights. Looking at the broader picture, how do these fluctuations in industrial production impact the overall economy of Bulgaria?
D.M.I.: Industrial production is a critical driver of economic growth, job creation, and investment. Positive growth in industrial production can lead to increased GDP, while declines might prompt concerns about recessionary pressures. The fluctuations we’re observing could influence monetary policies, government spending, and foreign investment decisions in Bulgaria. Therefore, continued monitoring is crucial to gauge future economic health.
T.N.E.: Thank you for that perspective, Dr. Ivanova. As we conclude, what would you advise policymakers to focus on going forward to enhance industrial growth stability in Bulgaria?
D.M.I.: Policymakers should concentrate on fostering a competitive environment for both traditional and emerging industries. This includes investing in technology, support for research and development, and robust training programs to develop a skilled workforce. Additionally, addressing infrastructure challenges and ensuring that the regulatory environment is conducive to business can significantly enhance industrial growth. sustainable practices must be integrated into industrial strategies to ensure long-term resilience.
T.N.E.: Thank you, Dr. Ivanova, for your valuable insights into Bulgaria’s industrial landscape. It’s been a pleasure discussing these critical issues with you.
D.M.I.: Thank you for having me! I look forward to seeing how the industrial sector evolves in the coming months.