December 2023 Witnesses Robust Growth in Deposits and Loans Across Sectors in Bulgaria

Recent data released by the Bulgarian National Bank (BNB) reveals a significant uptick in both deposits and loans during December 2023, signifying positive economic dynamics in the country. Non-financial corporations saw a noteworthy increase in deposits, amounting to BGN 43.829 billion, marking a substantial 9% surge compared to the same period in the previous year. This growth reflects confidence in the business sector, showcasing their financial resilience and positive outlook.

Simultaneously, deposits for households and non-profit institutions serving households (NPISHs) experienced a robust upswing, reaching BGN 79.984 billion. This impressive figure represents an 11% annual increase, underlining the strong financial footing of Bulgarian households and associated institutions. The surge in deposits for these entities signifies increased financial stability, potentially driven by economic growth and enhanced consumer confidence.

Conversely, the data indicates a decline in deposits for financial corporations, which decreased by 11.6% annually, settling at BGN 3.726 billion by the end of December 2023. While this decline is notable, it is essential to consider the specificities of the financial sector and its dynamics, which may differ from those of non-financial corporations and households.

Moving beyond deposits, loans to the non-government sector showcased a robust annual growth of 12% in December 2023, amounting to BGN 89.862 billion. This upward trend in loans is indicative of increased economic activity, as businesses and households are more willing to borrow for various purposes, including investments and consumption.

Among the various loan categories, loans to non-financial corporations increased by 6.9% annually, reaching BGN 44.004 billion. This suggests that businesses are actively seeking capital for expansion and operational needs. Loans to households and NPISHs also experienced a significant uptick, totaling BGN 38.396 billion, reflecting a substantial 15.9% increase compared to the same period in 2022.

Noteworthy within the loans segment is the surge in loans for house purchases, which amounted to BGN 19.901 billion, showcasing a remarkable annual growth rate of 20.5%. This points towards a buoyant real estate market and increased housing-related economic activities.

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