Bulgarian Minister Dismisses Stagnant Economy Report

Bulgaria's Economy and Energy Minister, Traicho Traikov, says 1.3% growth and unchanged GDP are acceptable, taking into account the current debt crisis in Europe. Photo by BGNES

There is no stagnation in Bulgaria's economy in the third quarter since on annual basis there is a growth of 1.3%, compared to the European average of 1.4%.

Speaking for the Bulgarian TV channel bTV Wednesday morning, Economy and Energy Minister, Traicho Traikov, pointed out that recession occurs when there are at least two consecutive quarters with negative economy growth.

Traikov's statements came on the heels of data, released Tuesday by the National Statistical Institute in Sofia, showing Bulgarian economy is stagnating on quarterly basis as seasonally-adjusted Gross Domestic Product (GDP) was unchanged in the third quarter.

According to the Minister, 1.3% growth and unchanged GDP are acceptable, taking into account the current debt crisis in Europe.

On other topics, Traikov informed that energy giant Lukoil Bulgaria had made the commitment to install the required electronic measuring devices by the spring of 2012.

He confirmed earlier information, announced by the State Commission for Energy and Water Regulation (DKEVR), according to which price of natural gas in Bulgaria would go up by no more than 5% beginning January 1, 2011, not by nearly 18% as is Bulgargaz' request.

The Minister stressed Bulgargaz is trying to get rid of staggering losses and gas prices will go down when there is alternative import, local extraction, market competition, and diversification of gas supplies.

Regarding central heating prices, Traikov believes that customers must utilize the opportunities for upping energy effectiveness in order to reduce consumption of heating energy.

The Minister also commented on the reshuffle at the Bulgarian Energy Holding (BEH), saying he was not satisfied with the work of the now-former BEH CEO, Maya Hristova, also a former Energy and Economy Minister.

Traikov's assessment on the draft budget 2012, which is debated at first reading in the Parliament Wednesday, was the following: "The Finance Ministry is proposing a balanced product."

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