Bulgaria’s Finance Ministry said that the consolidated Budget surplus for the full year 2018 was BGN 137 million, or 0.1 per cent of this year’s estimated gross domestic product, falling short of the ministry’s BGN 163.5 million forecast issued last month. The figure represented a steep drop compared to 2017, when Bulgaria recorded a Budget surplus of BGN 845.2 million. This year’s Budget Act set a deficit of one per cent (BGN 1.1 billion), but the Finance Ministry’s updated estimates, in October 2018, envisioned a surplus of 0.5 per cent (BGN 591 million). The state Budget had a surplus of BGN 251.7 million and the EU funds recorded a deficit of BGN 114.7 million. Bulgaria’s contribution to the EU budget in 2018 was BGN 1.08 billion. Revenue in 2018 was BGN 39.65 billion, up from BGN 35.31 billion last year and 3.7 per cent higher than the target set in the 2018 Budget Act. Tax revenues were up by 8.7 per cent compared to 2017, at BGN 32.24 billion, which was also 6.5 per cent higher than the amount targeted.

Unemployment in Bulgaria in December 2018 was 5.2 per cent, unchanged from November and down from 5.7 per cent in December 2017, according to seasonally-adjusted figures released by European Union statistics agency Eurostat on January 31. The figure of 5.2 per cent in December 2018 represented about 171 000 people, according to Eurostat. While the percentage was the same as in November, the figure for that month represented about 172 000 people. Youth unemployment in Bulgaria, in percentage terms, rose from 11.5 per cent in December 2017 to 12.8 per cent in December 2018, according to Eurostat. However, the statistics agency's estimates were that both percentages represented about 19 000 people among Bulgaria's under-25s. Bulgaria's December 2018 unemployment rate was below the EU average for that month, which was 6.6 per cent, stable compared with November 2018 and down from 7.2 per cent in December 2017. This remains the lowest rate recorded in the EU28 since the start of the EU monthly unemployment series in January 2000.

The combined net profit of the banks operating in Bulgaria increased to BGN 1.68 billion in 2018, from 1.17 billion in 2017, the Bulgarian National Bank (BNB) said in a regular report on the performance of the country's banks. Interest income of Bulgarian banks remained virtually unchanged at BGN 3.04 billion in both 2018 and 2017. Fee and commission income rose to BGN 1.25 billion in the period under review from BGN 1.15 billion a year earlier. The banking sector's net operating income grew to BGN 4.22 billion in 2018 from BGN 3.89 billion the year before. The banks' total assets increased to BGN 105.6 billion at the end of 2018, from BGN 97.8 billion a year earlier.

Spanish-Polish consortium Komsa Traction was selected as contractor of the Sofia-Voluyak railroad with a cost of BGN 190 million excluding VAT, announced the National Railway Infrastructure Company (NRIC). The project is funded under the new "Connecting Europe" mechanism and co-financing comes from the NRIC. Tenders were submitted by four candidates, two of which were removed. Thus the Greek Terna AD and the Komsa Traction company passed to the next stage – the opening of the price proposals. The public procurement is for engineering services - design and construction.

Bulgaria's thermal power plant TPP Maritsa 3 said that it net profit rose by an annual 14.5% to BGN 6.4 million in 2018, thanks to an increase in revenue. The plant bagged revenue of BGN 17.5 million last year, up from BGN 16.3 million in 2017, figures from TPP Maritsa 3's financial report showed. However, the plant's revenue from electricity sales declined to BGN 9.6 million in 2018 from BGN 12.1 million the year before. This was offset by an increase in "other" sales revenue, which the company did not clarify, to BGN 5.2 million last year from BGN 2.6 million in 2017. The TPP's expenses rose to BGN 11.1 million last year from BGN 10.1 million a year earlier, largely due to an increase in expenses for hired services. TPP Maritsa 3 is located in the town of Dimitrovgrad, in southern Bulgaria. Its largest shareholder is local Topgroup with a 49% stake, followed by Draft with 46% interest.

The third phase of the market test for reserving capacity from the Bulgarian expansion of Turkish Stream has been successfully completed, Bulgartransgaz said. That is why the state-owned company has decided to implement the project, which at this stage is estimated at about BGN 2.8 billion. Subsequently, these funds have to be reimbursed by transit fees in the next 15-20 years. Interested candidates for participation in Phase 3 of the economic test have submitted three offers, with engagement capacity contracts pending. "100% of the declared capacity within the Phase 3 capacity of the Bulgarian-Turkish border and 100% of the declared capacity at the Bulgarian-Serbian border are reserved with the submitted requests from the users," the announcement of Bulgartransgaz reveals. The names of the companies interested in transferring gas through the Bulgarian pipeline were not declared. No information is provided as to how much capacity is reserved for the quantity and at what transit fees. According to unofficial information, Russian giant Gazprom and two of its subsidiaries have shown interest.

In 2018, the National Company Industrial Zones (NCIZ) recorded a profit for the first time since its early years. The company was founded in 2009 and initially earned profit from interest on cash contributions. Over its 10-year history NCIZ has attracted BGN 552 million in investments which have created over 2,300 jobs. Intensive negotiations are currently underway with about 20 potential investors whose investment projects could exceed BGN 160 million in total and could create more than 1,000 jobs. NCIZ is a fully state-owned holding company specializing in the building of industrial parks, the management of industrial zones and innovation centres, and the provision of additional services to investors. Its mission is to help implement the Bulgarian government's strategy for boosting economic development and promoting foreign direct investment in the country.

Italy fell into recession at the end of 2018, capping a year of political turmoil, higher borrowing costs and fiscal tensions that took their toll on the economy. Output shrank 0.2 percent in the three months through December, following a 0.1 percent decline in the previous quarter, statistics agency Istat said. That was more than expected, and will put further pressure on the coalition government, which already appears to be fraying. The contraction was anticipated, particularly after Premier Giuseppe Conte said Wednesday that he expected the fourth-quarter GDP drop. Separate figures showed the euro-zone economy grew 0.2 percent at the end of 2018, matching the pace of the previous quarter, but slower than the first half. Market reaction to confirmation of the Italian recession was limited. The spread between Italian 10-year bond yields and those of similarly dated German bunds stayed at 240 basis points. The country’s benchmark FTSE MIB index erased earlier gains and was down 0.4 percent.

The European Parliament recognised Venezuela’s self-declared interim president Juan Guaido as de facto head of state on Thursday, heightening international pressure on the OPEC member’s socialist President Nicolas Maduro. EU lawmakers voted 429 in favour to 104 against, with 88 abstentions, at a special session in Brussels to recognise Venezuelan congress head Guaido as interim leader. In a statement with the non-binding vote, the parliament urged the bloc’s 28 governments to follow suit and consider Guaido “the only legitimate interim president” until there were “new free, transparent and credible presidential elections”. Though frequently accusing Maduro of stifling democracy, the European Union is nervous at the precedent of a self-declaration, so has been reluctant to follow the United States and most Latin American nations with immediate recognition of Guaido. Britain, France, Germany and Spain said on Saturday, however, that they would recognise Guaido unless Maduro called elections within eight days. But the EU has a whole has not set a time limit in its call for a new presidential vote. Maduro has dismissed the demands as an unacceptable ultimatum from the corrupt elite of spent colonial powers.

Chinese authorities recently announced the plan to add 15 new job roles in fields including artificial intelligence and big data. The list of 15 new jobs was posted on the official website of the China Employment Training Technical Instruction Center (CETTIC) on Jan. 25 for a week-long public consultation. The first four jobs listed are engineering roles in artificial intelligence, the Internet of Things, big data and cloud computing. Some other roles in cutting-edge fields, such as drone pilot, industrial robot system maintainer and operator, and digital manager, are also on the list. For the very first time, becoming an e-sports player and operator will be recognized as a profession. The role of agriculture manager has also been added to the list, with responsibilities including production organization, technical support and product processing in agricultural cooperatives, alongside jobs in charge of maintenance of urban transit lines and trains.