Bulgaria's real gross domestic product (GDP) growth is expected to slow down from an estimated 3.1% in 2018 to 3.0% this year and 2.8% in 2020, the World Bank said. "Domestic demand will continue to be the main driver of growth supported by labor market tightening and additional public-sector wage increases," the World Bank said in an Economic Update for Europe and Central Asia. However, the expected weaker external demand will put pressure on the country's trade balance. Private and public investment is expected to remain strong, backed by low interest rates and EU funding. However, investment sentiment might be affected by increasing uncertainty in external markets. Bulgaria's current account balance is expected to remain positive, but the surplus is projected to narrow progressively - from 4.6% last year to 2.1% in 2021. Consumer price inflation is seen speeding up from 2.8% last year to 2.9% in 2019, and 3.0% in both 2020 and 2021. Slowing growth in Bulgaria’s main EU trading partners and further slowdown in Turkey are among the major risks to the outlook. In addition, tightening global financial market conditions could increase the cost of lending to the private sector with negative implications for investment.

The minimum wage will continue to rise and will increase from BGN 560 to BGN 610 from January 1, 2020. From the beginning of 2021 it will increase to BGN 650. The measure is set in the Medium-Term Budget Forecast for the period 2020 - 2022, published for public discussion by the Ministry of Finance. No major changes are expected next year in taxes, social security contributions and social transfers. Guaranteed minimum income will remain BGN 75. Minimum insured income will rise to BGN 610, but the maximum is retained to the amount of BGN 3000. The maximum pension remains BGN 1200. The remaining labor pensions will increase by 5.3 per cent as of July 1, 2020 and by 4.5% as of July 1, 2021, it is clear from the budget forecast. The state social security pension costs will rise by BGN 531 million next year. The benefit for child up to 2 years remains BGN 380. The income criteria, which depend on family benefits for children, are also retained. Birth support also does not change. Children's allowances and monthly allowances for children with disabilities are also not affected.

The National Electricity Company (NEK) demands that from 1 July household and small businesses electricity price rise by almost 20%, according to the report of the company to the EWRC. The envisaged average purchase price of the households and the regulated electricity market from July 1 is BGN 151 per megawatt, which is nearly 20% higher than the current price. So far, this is the highest demand submitted to the Energy and Water Regulatory Commission. At the end of March, a proposal for new electricity prices was introduced by the three electricity distribution companies. The largest increase was claimed by CEZ - by nearly 9%. EVN offered electricity to rise by 4%, and Energo-Pro - by 1.7%. The Energy Regulator will take a final decision on electricity prices at the end of June. Meanwhile, it became clear that, according to the data of the Electricity System Operator (ESO), Bulgaria exported nearly 60% more electricity in the first quarter of this year compared to the same period last year.

The National Company Industrial Zones’s offer for over BGN 70 million to build infrastructure in several parks in the country has raised a serious interest by 12 construction companies. Almost all large construction companies - GP Group, Trace Group Hold, PST Group, Geostroy, Galchev and others have submitted offers. The auction will have three winners to sign 4-year framework agreements to design and build a total of 22 kilometers of streets. For each activity there will be a separate assignment, and the total amount may not exceed BGN 72.05 million excluding VAT.

Billa Bulgaria, the local unit of supermarket chain Billa owned by Germany's REWE Group, will invest over BGN 34 million in 2019 in the opening of new stores and renovation of existing ones. By the end of the year Billa Bulgaria will open two new stores at key locations in Sofia - in Paradise Center and The Mall shopping centres. The Bulgarian unit increased its revenue by 5.9% year-on-year in 2018. The revenue of REWE Group rose by 4.7 % to EUR 61.2 billion mostly due to its retail business in Central and Eastern Europe. For the first time, REWE Group's revenue exceeds EUR 60 billion. The company is active on the SEE retail market, operating supermarket chain Billa in Bulgaria, discount store chain Penny in Romania and drugstore chain Bipa in Croatia. In Bulgaria, there are 124 Billa stores in 38 cities. Billa entered the Bulgarian market in 2000.

Megaport increases its production capacity and opens new jobs. The company is a leader on the Balkan Peninsula in the production and recycling of polymer and copolymer films, packaging and materials. Due to the increased demand and packaging orders from all over Europe and the domestic market, Megaport has expanded its production facilities by installing two new extruders for production of polyethylene foils. The machines are from the renowned Italian company CMG and have a throughput of over 350 kg per hour. They were purchased under the new investment program of the company for 2019 and under the Megaenergy Project, financed by the Operational Program Innovation and Competitiveness. This investment leads to the opening of new jobs for extruders, machine operators and technical support specialists.

Fibank has won a third lawsuit against the Romanian Agency for Payments and Intervention in Agriculture (APIA). The Romanian court dismisses all objections and requests from APIA, ruling in favor of the Bulgarian bank. Completing the dispute in Romania in favor of Fibank means also terminating any action against it. So far, Fibank has won two other litigation against APIA in Romania. APIA had blocked a Fibank account with the BNB, although at that time the disputes in Romania were not over. They start in 2012 when APIA assigns to the Bulgarian company VM Corporation two public procurement contracts for the supply of food products, a bank guarantee was required, Fibank issued it and the funds from the orders had to be transferred by APIA to the account of VM Corporation in the Bulgarian bank, but the amounts are found in another bank account outside Bulgaria, and then they disappear. APIA claims them, which is now rejected by the court. Fibank has filed a complaint with OLAF, the National Anti-Corruption agency at the Romanian Prosecutor's Office, the State Agency for National Security and the Specialized Prosecutor's Office in Bulgaria, and there are detainees from the Romanian Agency.

The Italian Treasury is set to slash its growth forecast for this year and raise its projected budget deficit, according to two senior officials with knowledge of the draft outlook. The economy will expand by just 0.1 percent this year, according to the draft, which is due for cabinet approval by April 10, the officials said. The government’s previous forecast was for a 1 percent expansion and the new prediction is in line with Bloomberg’s latest survey of economists. Such dire figures highlight the uphill struggle the government faces to fix the economy. The country, which fell into a recession late last year, is burdened with a debt ratio of more than 130 percent of GDP and stagnation will make it even harder to take control of the fiscal situation. The budget shortfall is projected to be 2.3 percent or 2.4 percent of GDP, compared with the previous forecast of 2.04 percent agreed on with the European Commission last year. The government is aiming to achieve growth of 0.3 percent or 0.4 percent with a series of measures to boost output included in the so-called Growth Decree, which goes to a separate cabinet meeting Thursday.

President Donald Trump on Thursday hinted the United States and China may be inching closer to finalizing a deal to end a year-long trade impasse between the world's two largest economic superpowers within weeks. Speaking in the Oval Office, the President said a trade agreement, which he described as "the granddaddy of them" could be announced "within the next four week or maybe less, or maybe more, whatever it takes," describing the possible agreement as "very monumental." He declined to confirm reports that he would hold a summit with Chinese President Xi Jinping later this month, following an afternoon meeting at the White House with Chinese Vice Premier Liu He, who has been in talks with US negotiators this week in Washington. Instead, stressing "if there's no deal, a summit with Xi is off." Talks this week in Washington were yet another make-or-break moment for what has been closely held trade negotiation that has drifted beyond the ambitious 90-day clock set by the two leaders last year.

Saudi Arabia is threatening to sell its oil in currencies other than the dollar if Washington passes a bill exposing OPEC members to U.S. antitrust lawsuits, three sources familiar with Saudi energy policy said. They said the option had been discussed internally by senior Saudi energy officials in recent months. Two of the sources said the plan had been discussed with OPEC members and one source briefed on Saudi oil policy said Riyadh had also communicated the threat to senior U.S. energy officials. The chances of the U.S. bill known as NOPEC coming into force are slim and Saudi Arabia would be unlikely to follow through, but the fact Riyadh is considering such a drastic step is a sign of the kingdom’s annoyance about potential U.S. legal challenges to OPEC. In the unlikely event Riyadh were to ditch the dollar, it would undermine the its status as the world’s main reserve currency, reduce Washington’s clout in global trade and weaken its ability to enforce sanctions on nation states.