Last year's real GDP growth is projected to be about 3.3% or slightly slower than in 2017 (3.7%). This reads in the economic review of Raiffeisenbank (Bulgaria), referring to data available as of February 2019. "The growth in 2018 was a result of a stronger domestic demand supported by cheap money and rising wages on the one hand, and, on the other, the unfavorable situation on international markets for the export of Bulgarian goods and services. In particular, the weak Turkish lira has made Bulgarian exports too expensive (Turkey is the second largest export partner), which has suppressed national exports," the review reads. According to the calculations, real GDP grew by 3.1% yoy in the fourth quarter of 2018 and by 0.7% on the same quarter of the previous year, based on the express estimates of the National Statistical Institute. Of GDP components, final consumption recorded the largest increase of 5.4% on an annual basis, followed by gross fixed capital formation (4% on an annual basis).

Mortgage loans shrank almost three times in January on an annual basis. The total amount of new loans for housing in January is slightly over BGN 35 million, from about BGN 100 million a year earlier, BNB statistics show. The reduction of mortgages is a fact, although the average interest rate and the annual percentage rate of expenditure still remain low. Two may be the main reasons for this. One is the tightened lending regime by banks in anticipation of interest rate changes. Also potential customers are more cautious. The second is seasonal and reports weaker demand for properties in the winter, as well as a slight cooling of the property market. However, annual growth in mortgages is still a fact. As of the end of January 2019, the total amount of granted housing loans was BGN 10.6 billion, up 11.1% more than a year ago, according to data from the central bank.

The Commission for Protection of Competition (CPC) has begun an examination of the transaction for the acquisition of  Nova Broadcasting Group AD by the Bulgarian Advance Media Group EAD. This became clear from published proceedings by the anti-monopoly regulator. The transaction is subject to regulatory approval by the Commission for the Protection of Competition (CPC), with the statutory deadline of one month. The review will be on Advance Properties and the concentrations between enterprises and the impact on the media market. Finalization is expected to take place in the second quarter of 2019. We recall that on February 22, it was formally announced that Advance Media Group and the Swedish Media Times Group (MTG) had officially signed a deal for Nova Broadcasting Group AD. Nova Broadcasting Group owns the largest media group in Bulgaria. The company's portfolio includes 7 TV channels. The company is the largest player in the online market in the country, reaching about 75% of people using the Internet in Bulgaria. Advance Media Group EAD is a subsidiary of the investment holding Advance Properties OOD. Advance Properties owns 117 companies in 23 countries from 10 different industries.

A new plant for BGN 10 million will be built near Plovdiv. The high-tech textile factory with small but qualified staff will be built near Plovdiv. Negotiations are currently taking place between the foreign investor and Trakia Economic Zone, where the industrial site will be built. It is expected by the end of this year the transaction to be finalized. From the zone elaborated that the textile factory is from the last wave of new factories, which are emerging in the neighboring municipalities of Plovdiv. Currently, ten factories are being built. 

The BDZ business plan for 2019 sets the capital investment to improve the service provided for passenger transport to amount to more than BGN 71 million. Of these, BGN 65 million are only planned to improve the condition of the rolling stock. Preliminary data for 2018 in BDZ - Passenger Traffic EOOD show that in 2018 the revenues of the company are formed from BGN 51 million sales, BGN 10.4 million compensation and BGN 175 million subsidy, or a total of BGN 236.4 million, which is 2.7 million BGN below the planned ones. Operating expenses amounted to BGN 215.2 million, by BGN 10 million less than forecasted, with the savings being made from external service and energy costs. As a result, the company will make a net profit of nearly BGN 1 million for the first time in 6 years.

The Bulgarian Stock Exchange AD has received an application for admission to trading of a subsequent issue of 1 249 997 ordinary, registered, dematerialized, freely transferable voting shares with a par value of BGN 1 each issued by Holding Varna, JSC - Varna. It was issued as a result of the increase of the capital of the former privatization fund from BGN 5,235,900 to BGN 6,485,897, distributed in the same number of shares with a par value of BGN 1 each. The accumulated capital will be used to repay current liabilities and to change the capital structure of the company as well as to carry out its main activity related to the financing of self-participation in three investment projects - construction and commissioning of a new independent body of Astera Bansko hotel, reconstruction and modernization of Bor Hotel and construction and commissioning of hotel complex Chernomorets.

Financial and insurance group Eurohold Bulgaria said that its consolidated net profit after minority interest dropped to BGN 15.4 million in 2018 from BGN 18.2 million the year before. The group's after-tax profit including minority interest fell to BGN 18.2 million last year from BGN 24.4 million in 2017. The drop in profit was largely due to a rise in expenses, which amounted to BGN 1.26 billion in 2018, up from BGN 1.22 billion a year earlier. Eurohold Bulgaria posted a sharp increase in expenses for salaries, cost of goods sold and expenses for hired services. The group's revenue grew to BGN 1.28 billion in the review period from BGN 1.25 billion in 2017. Revenue from insurance activities slid 2% to BGN 987.1 million last year, while the automotive segment posted an 11% rise to BGN 237.6 million. Eurohold Bulgaria's portfolio includes companies active in financial services, leasing, insurance and car sales.

The European Union will start screening foreign direct investment into the 28-nation bloc from April to safeguard Europe's security, public order and strategic interests, the European Commission said. European ministers approved the process on Tuesday, first proposed by the Commission in 2017. "With the new investment screening framework, we are now much better equipped to ensure that investments coming from countries outside the EU actually benefit our interests," Commission President Jean-Claude Juncker said in a statement. The screening aims to give EU countries a tool to intervene in cases of foreign direct investment in strategic assets, in particular if carried out by state-controlled or state-financed enterprises. The move is a response to concern from some EU governments, notably France and Germany, over investment from China, giving Beijing access to key technologies through takeovers of European companies while at the same time protecting its own firms.

Alphabet Inc’s Google will ban political advertising on its platform before the Canadian federal election, after the country introduced stringent transparency rules. The Bill C-76, which was passed in December, requires online platforms to keep a registry of all political and partisan advertisements they directly or indirectly publish. “For the duration of the 2019 federal election campaign, Google will not accept advertising regulated by Bill C-76,” Colin McKay, Google Canada’s head of public policy, said in a statement. “We’re focusing our efforts on supporting Canadian news literacy programs and connecting people to useful and relevant election-related information.” Election is due in October in Canada. Google will modify its ad policies and systems to block advertisers from running ads that fall under the purview of the definitions set out in Bill C-76. Other Google services such as enhanced search results and platforms, including YouTube, will still be available during the campaign period.

China will cut taxes and fees for all companies by nearly 2 trillion yuan in 2019, with the manufacturing, transportation and construction sectors set to benefit as Beijing looks to stimulate a slowing economy. China will cut the rate of value-added tax (VAT) for manufacturers to 13 percent in 2019, from the current level of 16 percent, according to a budget report issued at the opening of the country’s annual meeting of parliament on Tuesday. The VAT rate for transportation and construction sectors will also be reduced to 9 percent from 10 percent, it said. Purchasing taxes for new energy vehicles will continue to be exempted, with authorities looking to “adjust and improve” their subsidy policies, the ministry said.