This report covers the key macroeconomic and financial releases for Bulgaria for the period from July 11, 2015 to August 12, 2015.

Bulgaria's consumer sentiment deteriorated slightly in July after reaching its best level in eight years in April. The business climate worsened for the second consecutive month in July.

The industrial production growth accelerated to 5.7% y/y in June from 3.9% y/y in May. The annual retail sales growth (at constant prices) speeded up to 2.7% in June from 0.8% the month before. Also on the positive side, the construction output increased 1.5% y/y in June, reversing a 7% y/y drop in May.

Bulgaria's parliament supported on July 29 the controversial deputy governor nominations of the central bank's recently appointed new governor Dimitar Radev. The Bulgarian National Bank (BNB) has invited bids for organising and coordinating a process of an asset quality review (AQR) and stress tests of the entire banking sector.

Key points:
• The CPI edged down 0.2% y/y in July, reversing a 0.4% y/y increase in June
• Bulgaria reported an estimated consolidated budget surplus of BGN801mn (€410mn), equal to 1% of the projected 2015 GDP, for January-July, the finance ministry said in a preliminary estimate
• The current account balance reported a surplus of €206.2mn in January-May, reversing a deficit of €472.9mn in the same period last year