In the second quarter of 2019, gross domestic product (GDP) increased by 3.3% compared to the corresponding quarter of the previous year and by 0.6% compared to the first quarter of 2019, according to seasonal data. For the second quarter of 2019 GDP in nominal terms reached BGN 28.1 billion. The realized value added in the second quarter of 2019 is BGN 24.2 billion. By end-use elements, final consumption accounts for the largest share of GDP - 76.3% or BGN 21.5 billion. In the second quarter of 2019, gross capital formation was BGN 5.7 billion, accounting for 20.2% of GDP. The foreign trade balance is positive. In the second quarter of 2019, compared to the first quarter of 2019, according to seasonal data, gross value added increased by 0.8%. According to the express estimates of GDP by end-use elements in the second quarter of 2019, the economic growth comes mainly from the gross fixed capital formation - by 0.8% and of final consumption - by 0.1 percent.

According to Eurostat, industrial production in Bulgaria fell by 1.9% in June compared to May, when it contracted by 0.4%. This means that the industrial sector in Bulgaria continues to experience difficulties for the fourth consecutive month after strong growth earlier this year (by 3.6% in January and 1.6% in February). On an annual basis, industrial production in Bulgaria decreased in June by as much as 3.5% after an increase of 0.9% in May. This represents the first decrease in production in Bulgaria for the current year and the strongest decline since 2013. By this indicator, Bulgaria ranks sixth among the EU member states with the strongest declines in industrial production.

Bulgaria's competition authority has given the green light to consumer electronics retailer Ozone Entertainment to acquire 100% of local peer Pulsar. The objective of the deal is to expand Ozone Entertainment's business towards the offline market through the existing network of Pulsar stores. The acquisition will not affect the Bulgarian offline market, because Ozone Entertainment is currently operating only on the online market, while Pulsar's online sales contribute about 10% to its total sales. The effect of the deal on the online market will be insignificant. The combined share of Ozone Entertainment and Pulsar of the domestic market of computers, monitors, game consoles and software will not exceed 5%. According to the competition authority's methodology, a market share below 15% is not troubling in terms of possible harmful impact on competition. Ozone Entertainment's revenue jumped to BGN 10.6 million in 2017 from BGN 5.9 million in the previous year. Pulsar's posted a revenue BGN 9.6 million in 2017, up from BGN 8.5 million in the previous year.

The maker of details for the packaging industry, Multivac Bulgaria Production, is investing EUR 2.5 million in new metalworking machines. With them, in September this year, starts the production of control panels for the parent company - the German Multivac group. The new investment will allow another 20 jobs to be created, bringing the number of employees at the plant to 162. In June 2018, the German group opened its factory for packaging machinery parts in the Bozhurishte industrial zone. It was the first enterprise of the world leader in packaging solutions east of Germany.

The manufacturer of steel radiators KORADO-Bulgaria, part of the Czech group KORADO Group, announced its financial results for the first half of the year. The company commented that these were the best first-half results in its history. For the first 6 months of 2019, KORADO-Bulgaria sold 259,000 radiators at 251,000 for the first half of 2018, an increase of 3%. Profit remains at a stable level - BGN 3.218 million compared to BGN 3.213 million in 2018 in the context of high commodity prices and a dynamic market in recent years. Evidence of continued market turmoil, for example, is the latest announcement of the closure of Europe's leading supplier of panel radiators based in Newport "due to rising commodity prices and cheaper brand imports." KORADO-Bulgaria is the first Bulgarian company to approve the distribution of 6-month interim dividends. The amount of the dividend that will be offered for the first half of 2019 is BGN 1.317 million or BGN 0.10 per share, the Company's Supervisory Board decided.

Doverie - United Holding JSC has not yet entered the management of the Moldovan bank Moldindconbank S.A., due to the complex procedures with the supervisory banks in Moldova, although it owns 77.62% in it. "The holding owns 77.62% of the shares in Moldindconbank through its subsidiary Doverie Invest SPJSC. By this criterion, the holding exercises legal control over the bank. With these shares, the holding exercised its right to vote at the last general meeting of Moldondconbank. It is also actively involved in the nomination of members of the bank's supervisory board," the interim report says. However, the bank is not consolidated in the Doverie - United Holding’s income statement for the following reasons. "The bank is currently under special early intervention by the National Bank of Moldova. This regime is characterized by constant oversight of the decisions of the bodies of Moldindconbank and the management exercised by the supervisory and management boards," reads the activity report.

Viand SPJSC has reached 97.6% stake in Svinecomplex Nikolovo JSC, acquiring 32.38% from Westpark Financial Group SA. This happened with the registration of the transaction in the Central Depository on August 9, 2019. Earlier in the year, Viand SPJSC acquired another 65.22% - 33.06% from Pimaro Bulgaria JSC and 32.16% from Hybrid SPLTD. Shortly after the transactions, Svinecomplex Nikolovo JSC announced that, when carrying out a laboratory test at Testing Laboratory Exotic and Particularly Dangerous Infections at the National Research Institute, of an animal product of Svinecomplex Nikolovо JSC, the genome of the African swine fever virus (ASF) was also found. Despite the ASF crisis, on July 26, 2019, Viand SPJSC submitted a tender offer to the owners for the remaining 34.78% of the shares, at a price of BGN 0.93 per share. Thus, the entire company was valued at BGN 2.44 million.

Seasonally adjusted GDP rose by 0.2% in both the euroarea (EA19) and in the EU28 during the second quarter of 2019, compared with the previous quarter, according to a flash estimate published by Eurostat, the statistical office of the European Union. In the first quarter of 2019, GDP had grown by 0.4% in the euroarea and by 0.5% in the EU28. Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 1.1% in the euroarea and by 1.3% in the EU28 in the second quarter of 2019, after +1.2% and +1.6% respectively in the previous quarter. The main reason for the weak growth in the second quarter is the contraction of the German economy by 0.1% compared to the beginning of the year. With an annual GDP growth of 3.3%, Bulgaria ranks fifth among other EU member states, ahead of Hungary (5.1%), Romania (4.6%), Poland (4.1%) and Lithuania (4%).

Alphabet Google unit, Facebook and Amazon are among the companies that will testify at a U.S. government hearing on the French government’s digital services tax. In July, the French Senate approved a 3% levy that will apply to revenue from digital services earned in France by companies with more than EUR 25 million in French revenue and EUR 750 million worldwide. The U.S. Trade Representative’s Office in July opened a probe into the new tax it called “unreasonable.” The office could issue new tariffs on French goods or other trade restrictions after the public comment period closes. Amazon’s international tax policy director Peter Hiltz said in written testimony for the USTR hearing that more than 10,000 French-based small- and medium-size businesses are selling on Amazon’s online stores and notified them that certain fees will increase by 3% for sales made on Amazon.fr starting Oct. 1. He added that “U.S. products and services sold through Amazon’s online store in France will cost more as a result” of the tax.

Growth of China’s industrial output slowed much more than expected to 4.8% in July from a year earlier, official data showed on Wednesday, in the latest sign of faltering demand in the world’s second-largest economy as the United States ramps up trade pressure. The July pace was the slowest since February 2002. Analysts polled by Reuters had forecast industrial output would rise 5.8% from a year earlier, slowing from 6.3% in June. Fixed-asset investment for the first seven months of the year rose 5.7%, according to data published by the National Bureau of Statistics, compared with a 5.8% rise forecast by analysts. Private sector fixed-asset investment, which accounts for about 60% of the country’s total investment, grew 5.4% in January-July, compared with a 5.7% rise in the first sixth months of 2019. Retail sales growth was also weaker than expected, increasing 7.6% in July from a year earlier, compared with 9.8% in June. Analysts surveyed by Reuters had expected growth of 8.6%.