Bulgaria's 11-month current account surplus shrinks 69% y/y

By bne IntelliNews January 19, 2015

Bulgaria’s current account surplus narrowed 69% y/y to €371.1mn in the first 11 months of 2014 largely because of the expanding foreign trade gap, preliminary central bank data showed. The surplus equalled 0.9% of the full-year GDP projection, compared to 2.9% a year earlier.

The drop in exports to non-EU countries, coupled with a small increase in total imports, contributed to a widening of the merchandise trade deficit by 20.3% y/y to €2.5bn. In addition, the net current transfers surplus contracted 32% y/y to €1.5bn.

On the other hand, the net income deficit shrank 7.4% y/y to €1.1bn, while the services surplus increased 10.1% y/y to €2.5bn due to a rise in net transport revenue that offset falling net tourism income and shrinking revenue from other services.

The capital account surplus increased 84.5% y/y to €821mn. Meanwhile, the financial account recorded a surplus of €1.4bn, compared to a deficit of €2bn a year ago, due to the surge in foreign ownership of local debt after the €1.5bn Eurobond the government issued in June.

Balance of payments, € bn Jan-Nov 2013 Jan-Nov 2014 Change y/y
Current account 1.2 0.4 -69.0%
  Trade balance -2.1 -2.5 20.3%
  Services balance 2.2 2.5 10.1%
  Income balance -1.2 -1.1 -7.4%
  Current transfers, net 2.3 1.5 -32.0%
Capital account 0.4 0.8 84.5%
Financial account -2.0 1.4 /
  FDI in Bulgaria 1.5 1.2 -20.8%
Reserve assets* 0.8 -1.5 /
*A negative sign indicates an increase in international reserves.  
Source: BNB      

Related Articles

CEZ’s attempts to sell Bulgarian assets reportedly suspended

The sale procedure initiated by CEZ for its assets in Bulgaria has been suspended, Bulgaria’s Energy Minister Temenujka Petkova said ... more

Bulgaria to probe its member of EBRD board over “Azerbaijani laundromat”

Bulgaria’s chief prosecutor Sotir Tsatsarov has ordered an investigation into allegations the country’s representative on the board of ... more

Bulgaria starts construction of radioactive waste repository

Bulgaria has started the construction of a radioactive waste ... more