Bulgaria's current account deficit narrowed 25% y/y to EUR 421mn in Q1 2013 on the back of strong exports, preliminary data released by the central bank showed.
The merchandise trade gap shrank 49% y/y to EUR 478mn in the first three months of the year as exports climbed 12.9% to EUR 5.2bn, while imports climbed only 2.4% to EUR 5.7bn.
The surplus of the services' balance fell 19% y/y to EUR 73mn but will most likely improve in the next quarter in light of the summer tourism season. In that context, revenue from foreign tourists edged up 6% y/y to EUR 317mn in Q1.
The deficit on the income balance contracted 33% y/y to EUR 211mn. Net current transfers posted a EUR 195mn surplus, down from EUR 602mn in Jan-Mar 2012, attributed to the lower remittances flow since the start of the year.
The financial account deteriorated substantially in Q1, netting a EUR 1bn deficit compared to a EUR 29mn surplus a year earlier. This can be associated with the falling net FDI (down 57% y/y) and the repayment of a Eurobond issue in January. In addition, the net portfolio investment deficit increased by 46%.
As a result, the balance of payments's gap widened to EUR 1bn in the first quarter of 2013 from just EUR 176mn a year earlier.
| Bulgaria, BoP (EUR mn) | 2012 Q1 | 2013 Q1 | Change y/y | |
| Current Account | 562 | 421 | -25% | |
| Goods balance | -942 | -478 | -49% | |
| Services balance | 90 | 73 | -19% | |
| Income balance | -312 | -211 | -33% | |
| Net current transfers | 602 | 195 | -68% | |
| Capital Account | 11 | -9.5 | / | |
| Financial Account | 29 | -1014 | / | |
| Net FDI | 641 | 274 | -57% | |
| Net errors and omissions | 346 | 399 | 15% | |
| OVERALL BALANCE | -176 | -1045 | 495% | |
| Source: Bulgarian central bank | ||||
Related Articles
Bulgargaz files claim against Gazprom over lost gas supply
Gazprom faces another compensation claim for lost gas supply from a former European customer – this time Bulgaria’s state gas company Bulgargaz. Bulgaria was one of a number of European ... more
Bulgaria's BACB to acquire 99.94% of Tokuda Bank
The Bulgarian-American Credit Bank said on April 16 it has agreed to acquire 99.94% of local Tokuda Bank from Japan-based Tokushukai Incorporated. The two banks are among the smallest in Bulgaria ... more
bne IntelliNews Southeast Europe Outlook 2024
This Southeast Europe Outlook 2024 has been prepared by bne IntelliNews as part of a series of annual reviews providing updates on the geopolitical, macroeconomic and commercial state of ... more