Bulgaria's current account posts EUR 373mn surplus in Jan-Jul 2013

By bne IntelliNews September 16, 2013

Bulgaria's current account recorded a surplus of EUR 373mn in Jan-Jul 2013 as compared to a EUR 646mn deficit for the same period of 2012, on the back of shrinking merchandise trade gap - down 37.7% y/y to EUR 1.46bn, preliminary central bank data showed. The balance of services posted a surplus of EUR 1.1bn, which was, however, 10% smaller than a year earlier. Tourism revenue during the first seven months of the year rose 3% y/y to EUR 1.6bn , while spending on tourist services abroad climbed 13.5% y/y to EUR 636mn. Thus, the Jan-Jul's net tourism revenue fell 2.7% y/y to EUR 990mn.

The income balance registered a deficit of EUR 826mn, down 2.2% y/y. The surplus on net current transfers increased by 18.2% y/y to EUR 1.55bn, mainly due to EU funds drawing. Remittances of Bulgarians living abroad inched up 0.7% y/y to EUR 492mn in Jan-Jul.

The surplus on the capital account declined 24% y/y to EUR 134mn and the financial account registered a deficit of EUR 1.2bn, following a surplus of EUR 1.8bn a year ago. Net FDI dropped 30% y/y to EUR 748mn, as result of lower investment inflows in the country (down 33% y/y to EUR 802.5mn). Net portfolio investments posted a deficit of EUR 956.8mn versus EUR 582mn surplus a year earlier.

As a result, Bulgaria's balance of payments posted a gap of EUR 267.4mn in Jan-Jul 2013 versus a EUR 1.4bn surplus in the same period of 2012.

Bulgaria, BoP     2012   2013 Change y/y
EUR mn July Jan-July Jan-Dec July Jan-July  
Current Account 278.7 -645.9 -354.4 245.8 372.8 /
Goods balance -249.6 -2346.2 -333.5 -226.1 -1462.8 -37.7%
Services balance 608.0 1229.0 39.4 581.9 1106.6 -10.0%
Income balance -201.9 -844.4 -285.1 -204.0 -825.7 -2.2%
Net current transfers 122.2 1315.7 224.9 94.1 1554.6 18.2%
Capital Account 120.6 176.2 220.2 60.9 134.3 -23.7%
Financial Account 482.1 1813.6 296.2 -170.5 -1208.7 /
Net FDI 65.1 1071.3 -250.4 104.8 748.1 -30.2%
Net Errors and Omissions 104.1 105.1 394.4 114.2 434.2 313.3%
OVERALL BALANCE 985.5 1448.9 556.4 250.4 -267.4 /
Source: BNB            

Related Articles

Bulgarian capital mulls car ban to tackle air pollution

The Sofia city authorities have announced plans for wide-reaching measures to curb high levels of air pollution in the capital.  Bulgaria has the highest levels of PM10 concentrations in ... more

EC to sue Bulgaria, Romania for failing to adopt copyright legislation

The European Commission said that will refer Bulgaria and Romania, along with Luxembourg and Spain, to the Court of Justice of the EU as they have failed to notify ... more

Bulgaria, Macedonia plan feasibility study for link to reduce dependence on Russian gas

Bulgarian state-owned gas transmission system operator Bulgartransgaz and Macedonian energy company MER Skopje have signed an agreement on the start of a ... more