This report covers the key macroeconomic, financial and political releases for Bulgaria for the period since December 15, 2015. The World Bank has raised its 2016 GDP growth forecast for Bulgaria to 2.2% from 2% projected in June 2015, the latest edition of the bank's Global Economic Prospects report showed. Bulgaria's business confidence weakened for the second month in a row in December, with the combined business climate indicator losing 0.7 points after a 0.5 point decline in November. The industrial production growth accelerated to 1.7% y/y in November from 1.2% y/y in October. The construction production edged down 0.5% y/y in November, softening from a 4.7% y/y drop the month before. The retail sales (at constant prices) rose 2% y/y in November, following three consecutive months of declines. The M3 money supply growth accelerated sharply in November and domestic credit returned to growth. Key points: • The annual consumer price deflation was 0.4% in December, unchanged from November. The annual average deflation was 0.1% in 2015, following a deflation of 1.4% in 2014 • Bulgaria reported a budget gap of BGN2.29bn (€1.17bn) in 2015, equal to some 2.7% of GDP and improving from 3.7% of GDP in 2014, preliminary data from the finance ministry showed • The current account surplus widened to €1.06bn in January-October from €934.6mn in the same period of 2014