Bulgaria's retail trade has registered a positive though modest growth for the first time in over two years, according to latest data from the National Statistical Institute.

After declining on a monthly basis in the past 25 months, in March 2011, Bulgaria's retail trade (excluding car sales) grew by 0.5% compared with February, and by 1.4% year-on-year.

The positive retail trade growth comes after the decline in the sector had slowed down to 0.1% y/y in February, and 0.2% y/y in January 2011.

The timid growth of the retail trade in March is line with mainstream analysts' expectations that the domestic demand in Bulgaria will finally start to recover, even though very modestly, to fuel the overall economic growth together with exports.

While Bulgaria's exports performed relatively strongly in 2010, the still declining domestic demand has been a major factor hampering the proper recovery of the Bulgarian economy.

NSI data shows that much of the positive growth of the retail trade in March can be attributed to the rising fuel prices – as the sales of fuel and machine oils grew by 7.6% year-on-year.

The growth, however, is not limited to these items – as the sales of pharmaceuticals grew by 2.1%; computers – 1.3%; clothes and shoes – 0.2%. The furniture and appliances trade dropped by 7.1%, and the food, drinks, and tobacco trade declined by 0.1%.