Bulgaria's economy grows.

Bulgaria's GDP grew 6 percent in the first quarter 2005 compared to the same period in 2004. The country's National Statistics Institute expects that when final results for 2005 are available they will show that Bulgaria's economy grew 5.2 percent. This information was reported by the Sofia News Agency in a wire story dated June 20, 2005.

The Bulgarian National Bank (BNB) says that the global slowdown that is currently showing signs of developing will have no effect on Bulgaria's rapid growth. The BNB points to Bulgaria's signing of its accession treaty with the European Union (EU) as the reason for enhanced confidence in the economy. The BNB's remarks were reported in a story in The Sofia Echo (Sofia) also dated June 20, 2005.

The BNB credited foreign investment in Bulgaria for the rosy growth prospects.

The news was also favorable for Bulgaria's consumers.

According to the National Statistics Institute, Bulgaria recorded its first deflation in May 2005 with prices declining 0.5 percent. This was part of a separate wire story by the Sofia News Agency dated June 14, 2005.

The story said that while overall consumer prices had increased by 2.6 percent since the beginning of 2005, prices for food declined in May 2005 by 1.5 percent.

Non-food prices increased 0.2 percent. Consumers paid more for alcohol and tobacco as well. Prices for alcohol increased 0.8 percent in May 2005. Prices for tobacco increased 0.6 percent during the same period.

Confidence in the economy meant that the contribution to GDP by companies increased markedly - 7.1 percent in the first quarter 2005 compared with the first quarter 2004.