Bulgaria's current account surplus melts away in 2014

By bne IntelliNews February 16, 2015

Bulgaria’s current account (CA) surplus narrowed by 98% to only €18.8mn in 2014 due to dropping current transfers and widening merchandise trade deficit, preliminary central bank data showed. The CA surplus is equal to just 0.04% of GDP, down from 2.1% of GDP in 2013.

The net inflow on the current transfers account decreased by 32.3% to €1.61bn last year. In addition, the merchandise trade gap rose 19.4% to €2.9bn as exports edged down 0.7% to €22.11bn, while imports grew 1.2% to €25.01bn. The annual decline in exports was driven mainly by lower sales of mineral fuels, lubricants and related materials to non-EU countries, which went down 13.3% to €2.2bn, the statistics office said earlier in February.

On the other hand, the net inflow on the services account expanded by 10.9% to €2.51bn in 2014. Also on the positive side, the net outflow on the income account narrowed 12% to €1.2bn.

The central bank’s reserve assets grew by €1.91bn in 2014, following a decrease by €599.2mn in 2013.

Balance of payments, €mn    
  2013 2014
A. Current Account 848 19
Balance on Goods -2,430 -2,902
- Exports 22,271 22,106
- Imports -24,701 -25,009
Balance on Services 2,263 2,511
Balance on Income -1,368 -1,203
Current transfers, net  2,383 1,614
B. Capital Account 468 1,012
C. Financial Account, incl.: -1,476 1,955
Direct investment, net 1,094 996
D. Net Errors and Omissions -439 -1,076
OVERALL BALANCE -599 1,909
Source: Central bank    

Related Articles

Bulgarian government gives up plan to join CEZ asset sale deal

Bulgaria’s government does not intend to participate in the deal to sell assets of Czech energy company CEZ, Finance Minister ... more

Bulgarian opposition demands resignations after travellers stroll through abandoned passport control at Sofia airport

Bulgaria’s main opposition Socialist Party (BSP) is demanding the dismissal of Interior Minister ... more

Bulgaria creates “golden hole” for corruption as it scraps procurement rules for Turkish border fence repairs

Bulgaria's parliament approved on March 22 highly controversial amendments to the Public Procurement Act that will allow contracts to repair the fence along its border with Turkey to be ... more

Dismiss