GDP continues to grow at a good pace

GDP_engAccording to the preliminary data, GDP grew by a year-on-year 3.4% in the first quarter of 2015 (the seasonally adjusted growth rate is 3.1%). This is a good pace in itself, and besides, it is the second highest year-on-year Q1 growth rate within the EU (according to the still incomplete Eurostat data). Yet, this rate slightly falls short of expectations, since the monthly data on industrial production suggested a more buoyant expansion. In a similar vein, the seasonally adjusted quarter-on-quarter growth of 0.6% was slower than expected, considering the quarter-on-quarter leap in gross industrial and construction output.

This suggests that the service sector growth was somewhat uneven: while expansion was robust in the retail and tourism sectors according to the monthly data, some other sectors (a CSO official has mentioned the financial and real estate services sectors as possible culprits) probably put some dent on overall growth of services. On the expenditure side, private consumption, and – defying the general trend – net exports may have been the primary drivers of economic growth.