The second quarter of 2020 brought a record downturn for the economy as a result of its closure due to the pandemic and this led to a decline of over 4% over the past 12 months. 2021 starts with growth compared to the previous quarter, but shrinks on an annual basis. This is shown by the current express data of the National Statistical Institute (NSI). For the period January-March 2021, gross domestic product (GDP) was down 1.8% compared to the same quarter last year, when the pandemic effect had not yet had a strong impact on the economy. At the same time, the indicator increased by 2.5% compared to the end of last year. The express assessment of the NSI shows that for the first quarter of 2021 the GDP in nominal terms reaches BGN 26.436 billion and the realized value added is BGN 22.665 billion. The largest contribution to the economy remains final consumption, which contributes to almost 85% of GDP and amounts to BGN 22.393 billion. Gross capital formation is BGN 4.108 billion and occupies a 15.5% relative share in GDP. 

A new Eurostat survey reveals another big difference between Eastern and Western Europe - this time related to the way we work. It turns out that in countries such as Finland, Luxembourg and Ireland, more than 20 percent of the population works at home, while in Bulgaria, Romania and Croatia, only 1-4 percent earn their wages remotely. Eurostat figures are for 2020. They are heavily influenced by the pandemic, which has forced many companies in Europe and around the world to look for ways to protect their staff from the coronavirus, incl. and by working from home. Last year, an average of 12.3 percent of the EU workforce (15-64 years old) worked remotely, over 3 pp more than in 2019. At both poles are Finland, where one in four worked from home, and Bulgaria with the unassuming 1.2 percent working remotely. Of course, these statistics also reflect the differences in the structure of the EU economies. It is clear that complex productions can hardly be reformatted into home work, while IT specialists, for example, can write software wherever they are.

VMZ Sopot must fulfill orders for nearly BGN 190 million by the end of the year, according to the company's financial analysis for the first three months of this year. Through them, the company has realized revenues from sales and services of special products worth BGN 47.6 million. Compared to the same period last year, revenues increased by BGN 1.24 million. At the same time, operating costs shrank by nearly BGN 2 million and reached nearly BGN 46 million from January to March 2021. The company has a profit for the first three months of 2021 of BGN 3.1 million compared to BGN 3.36 million for the same period last year. VMZ Sopot has liabilities amounting to BGN 166 million, including long-term - BGN 14.4 million and short-term - BGN 151.6 million. Compared to the end of last year, liabilities decreased by BGN 18.4 million, which is due to a decrease in liabilities to suppliers, staff, insurance and taxes.

Devin SPJSC became the first Bulgarian company among the producers of bottled water, certified according to the standards of Great Place to Work® - an international organization for research and consulting. In more than 60 countries around the world, it certifies companies as an excellent place to work, conducting detailed employee surveys and auditing corporate culture and working conditions. Currently, only two other companies in Bulgaria have such a certificate, which is considered the "gold standard" in the evaluation of the employer brand. Devin SPJSC conducted its first survey on the Great Place to Work® methodology in 2018, and the second - in 2020, noting an increase of 11% in the overall level of trust of the company's employees.

The planned investments of Sofiyska Voda for this year amount to a total of BGN 38.9 million, Vasil Trenev, executive director of Veolia Voda, announced at a press conference. The work on the maintenance and optimization of the water supply network continues with a special focus on reducing water losses, which in 2020 were about 41.63 percent. This is 3 pp less than the previous year. The company aims to reduce the percentage of water loss to 39.8 percent for 2021. 42 km of new water supply network will be built this year. Stanislav Stanev, deputy executive director of Veolia Voda, said Sofiyska Voda is working on two very important projects to ensure long-term water quality.

Monbat JSC signed a memorandum with the Ministry of Environment and Water on March 2, 2021, undertaking commitment to destroy all hazardous waste found by the Specialized Prosecutor's Office in the lands in the Sofia region, Cherven Bryag, Pleven, Lom and Montana at its own expense. The document was signed by the former Minister of Ecology Emil Dimitrov and the executive director of Monbat, Chavdar Danev. This comes a month after the Specialized Prosecutor's Office filed an indictment in court in the case for unregulated hazardous waste management in February, accusing businessmen Atanas and Plamen Bobokovi, who own Monbat. According to the indictment, in 2020 nearly 17,000 tons of buried waste were found, of which nearly 8,000 tons were declared hazardous. The document, signed by the Ministry of Ecology, undertakes the following commitment: "The subject of this memorandum is the known final waste from the activity of Monbat, handed over to third parties for recovery… as well as illegally dumped or buried and newly discovered waste in the country, which are related to the quantities handed over for recovery persons from Monbat."

The investment bank Wood & Co. increase the growth potential of Alterco shares, expecting their price to reach BGN 17 per share in the next 12 months, according to a report prepared by a project of the European Bank for Reconstruction and Development (EBRD), which covers public companies in several Eastern European countries. In its first report at the beginning of the year, the bank estimated Alterco's shares at BGN 10.83, giving 25% potential for a price increase next year. In the last three months, the shares of the technology company have risen in price by over 55%, and as of May 17 they are trading at BGN 14 per share. In its new forecast, the investment bank gives the Alterco 20% potential to increase the price. The report states that for the period from the previous forecast to the current, shares rose 61% after stronger-than-expected financial results in the fourth quarter of 2020 - earnings before interest, taxes, impairment and depreciation (EBITDA) of BGN 8.6 million compared to Wood & Co's forecast of BGN 3.5 million.

Unemployment in the UK fell to 4.8% between January and March this year, although at the time the country was under severe lockdown and quarantine. In April, the hiring of new staff increased further. According to British economists, the unemployment rate in the UK will remain at around 4.9%. The main reason for this is mostly subsidies for new government jobs. However, the UK is still experiencing a serious labor shortage - mostly because of the pandemic and, of course, because of Brexit. Foreign workers have already fallen sharply and the consequences are yet to be seen. However, the third reported decline in unemployment in the UK is also due to an increase in the number of people not looking for work. That means that they do not register as unemployed and do not enter the statistics. The percentage here is higher and higher for men.

US creditors have recovered far less after corporate bankruptcies due to the pandemic than in previous economic downturns. This became clear from a new report reflecting loose standards and changes in corporate debt structures. On average, creditors and bondholders have recovered 45 cents for every dollar, according to Moody's. By comparison, in the 2008-2009 financial crisis, banks and bondholders recovered 59 cents on every dollar. The historical average is 50 cents, writes FT. The oil and gas group Gavilan Resources recovered the smallest resource during the pandemic - only 9 cents per dollar. Moody's report outlines a noticeable change in how much investors can expect to receive from the companies they lend to in the event of a waiver - the effects of a decade of endless corporate debt demand and borrowers who have dominance over lenders. Moody’s notes that subordinated bondholders, who are only one level above capital investors in terms of seniority in bankruptcy, receive an average of just one cent for every dollar. That's a drop of 9 cents a dollar from the 2008-2009 financial crisis and 23 cents during the dotcom bubble.

Japan’s economy shrank more than expected during the first three months of the year, raising the possibility of a double-dip recession as the country struggles to contain infections and speed up its vaccine rollout. Gross domestic product contracted an annualized 5.1% from the previous quarter, ending six months of double-digit growth, as businesses cut investment, shoppers held back spending and government outlays fell amid a suspension of a travel-promotion campaign to help the ailing tourism industry. Economists had forecast an overall contraction of 4.5%. The worse-than-expected result leaves the economy in a vulnerable position this quarter, as Prime Minister Yoshihide Suga’s administration struggles to find the right balance in a targeted approach to virus containment that attempts to limit damage to the economy and keep the staging of the Olympics on track.