Bulgaria's current account turns to EUR 1.4bn surplus in Jan-Sep 2013

By bne IntelliNews November 15, 2013

Bulgaria's current account swung to a surplus of EUR 1.38bn in Jan-Sep 2013 from a deficit of EUR 27.8mn in the same period of last year on shrinking merchandise trade gap, preliminary central bank data showed. The deficit of the goods balance narrowed 38.4% y/y to EUR 1.6bn since the beginning of 2013 due to a well-performing export sector, offsetting a marginal rise in the value of imports. The increase in Bulgaria's exports was mainly linked to the rise in demand from other EU member countries.

The surplus on the balance of services fell 7.6% y/y to EUR 1.94bn in Jan-Sep. Tourism revenue rose 2.4% y/y to EUR 2.6bn for the period, whereas spending on tourist services abroad increased 11.6% y/y to EUR 884mn. As a result, net tourism revenue dropped 1.8% y/y to EUR 1.72bn.

The income balance gap narrowed 16.6% y/y to EUR 909.4mn on the back of higher income Bulgarians earned from portfolio investments abroad. Also in the reported period, foreigners earned smaller income from capital invested in the country due to the smaller value of foreign direct investments in Bulgaria and the general reduction of profit margins in the economy amid the current recessionary environment.

On the other hand, the surplus on net current transfers grew 24.3% y/y to EUR 1.96bn in Jan-Sep, thanks to better absorption of EU funds this year as compared to the previous. Remittances from Bulgarians living abroad inched up 0.8% y/y to EUR 622mn.

The surplus on the capital account rose 4.3% y/y to EUR 229mn in Jan-Sep. The financial account, on the other hand, registered a deficit of EUR 1.79bn, following a surplus of EUR 1.96bn a year ago. The significant deterioration of the financial account is linked to the repayment of government debt and contracting investment flows to the country. Net FDI shrank 48.5% y/y to EUR 785.5mn and net portfolio investments posted a deficit of EUR 929mn versus EUR 308.6mn surplus a year earlier.

As a result, Bulgaria's balance of payments posted a gap of EUR 248.7mn in Jan-Sep 2013 versus a EUR 1.94bn surplus in the same period of 2012.

Bulgaria, BoP, EUR mn Jan-Sep'12 Jan-Sep'13 Change y/y
Current Account -27.8 1,385.9 /
Goods balance -2,623.3 -1,615.8 -38.4%
Services balance 2,105.8 1,946.0 -7.6%
Income balance -1,090.6 -909.4 -16.6%
Net current transfers 1,580.4 1,965.1 24.3%
Capital Account 219.7 229.1 4.3%
Financial Account 1,966.7 -1,795.8 /
Net FDI 1,524.3 785.5 -48.5%
Net errors and omissions -212.3 -67.9 -68.0%
OVERALL BALANCE 1,946.4 -248.7 /
Source: BNB      

Related Articles

Bulgarian prosecutors file indictment against defence minister

The Sofia city prosecutor’s office filed indictment with Sofia city court against outgoing Defence Minister Nikolay Nenchev over his alleged failure to ensure aviation safety and the ... more

Bulgaria’s former justice minister launches anti-corruption party

Bulgaria’s former Justice Minister Hristo Ivanov will lead the newly formed Yes Bulgaria party as it prepares to compete in the upcoming general election on an anti-corruption platform.  ... more

Belgium’s KBC buys United Bulgarian Bank and Interlease for €610mn

Belgian-based KBC Group said on December 30 that it is acquiring United Bulgarian Bank (UBB) and Bulgarian leasing ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss