Industrial sector in Bulgaria is contracting

Bulgaria’s industrial sector continued to suffer the most severe impact of the faltering global economy, with both output and sales shrinking by a double-digit figure for a third consecutive month.

Preliminary data of the National Statistical Institute (NSI) showed that in March alone, industrial production shrank by 17.1 per cent year-on-year, although expanding by 7.7% on the month. Analysts give more weight to the annual figure as it gives a clearer overall picture after seasonal fluctuations have settled.

Industrial turnover, which is seen as an indicator of demand, slumped by 20.7 per cent compared to March 2008. The processing industry again topped the total index of the industrial output, which rose 8.6 per cent month-on-month in March but fell by a steeper 24.1 per cent on an annual basis.

Source: Dnevnik

What we would be delighted to see is a concentration of the forces not only on reducing the number of employees that are directly productive, but on restructuring the companies' organisation to prepare it for the next growth phase. Indeed, it is the right time to reduce the amount of non value-added activities and optimise processes.