RECORD GROWTH OF BRIGHT BUSINESS IN BULGARIA
The Business to the Rules composite index, through which Bulgarian Industrial Capital Association (BICA) measures the bright part of the Bulgarian economy, rose 4.55 points and reached a record high of 79.10 points. The data was announced today at a press conference at which BICA announced the index for the ninth consecutive year.
BICA calculates the Light Economy Composite Index from 2010. By 2013, it grew steadily, with the only drop of 1.2 points in 2014. Since 2015, its upward trend has continued:
The increase in value for the past year reflects not only objective positive phenomena and processes in the economy, which are reported by the statistical sub-index, but also a positive change in the assessments of business and employees for the dynamics and share of the informal economy, which is accounted for by the sociological sub-index (though to a lesser extent).
Analysis of the Composite Index shows an increase in the value of both sub-indices. The statistical index registered a growth of 4.4% and the sociological one – 0.15%. This means that real successes have not yet been evaluated by employers and employees and that a more serious information campaign is needed.
The main reasons for the positive trends are the financial and economic stability in the country, the new measures taken to improve the business environment and curb the informal economy, increase the volume of exports of Bulgaria, the general decrease in the intensity of the main stress factors that create negative psychological moods. business, as well as the lack of migration pressure across our country’s borders.
BICA reports that in 2018 the reasons for holding back the positive trends in the change in the Index of Light Economy are the lack of manpower, which is a major problem of Bulgarian business, the new sharp administrative increase in the minimum wage, which in turn has led to an increase in “gray” practices in some sectors. The external factors that have contributed to the rise in the index are Turkey’s deepening economic crisis, ongoing EU sanctions on Russia and relevant counter-sanctions, as well as emerging trade conflicts between the US and China, the US and the EU and the US and its partners, NAFTA.