Bulgaria’s Jan-May current account swings into surplus on strong export growth

By bne IntelliNews July 20, 2015

Bulgaria's current account balance reported a surplus of €206.2mn in January-May, reversing a deficit of €472.9mn in the same period last year, mainly on the back of solid export growth that helped narrow the trade gap, preliminary central bank data showed. The five-month surplus is equal to 0.5% of GDP.

The merchandise trade deficit shrank 34.2% y/y to €1.07bn in the first five months of the year as exports rose 13.4% y/y to €9.02bn and imports increased 5.3% y/y to €10.1bn. In addition, the secondary income surplus went up 9.1% y/y to €1.02bn and the services surplus climbed 9.4% y/y to €590.8mn. On the other hand, the primary income deficit widened by 4.5% y/y to €328.8mn.

In May alone, the current account balance was a surplus of €51.3mn, compares to a deficit of €36.9mn in May 2014.

In its latest World Economic Outlook report from April, the International Monetary Fund (IMF) projected a current account surplus of 0.2% of GDP for 2015, reversing into a 0.8% deficit in 2016. The European Commission expects a surplus of 1.3% of GDP this year, edging down to 1.2% next year.

Current Account, €mn        
  2014   2015  
  May Jan-May May Jan-May
Current Account -37 -473 51 206
- Credit 2,481 11,875 2,610 13,111
- Debit 2,517 12,348 2,559 12,904
Goods and Services -97 -1,091 -41 -483
- Credit 2,250 10,256 2,308 11,323
- Debit 2,347 11,348 2,349 11,806
Goods -249 -1,631 -145 -1,074
- Credit 1,707 7,960 1,921 9,025
- Debit 1,956 9,592 2,065 10,099
Services 152 540 104 591
- Credit 543 2,296 388 2,298
- Debit 391 1,756 284 1,707
Primary Income -18 -315 -48 -329
Secondary Income 78 933 140 1,018
Source: Central bank        

Related Articles

Hungarian retail investors continue to pile into domestic government bonds

The stock of government bonds held by households rose by HUF154bn (€500mn) September to an all-time high of HUF6.5 trillion, Hungary’s Government Debt Management Agency (AKK) said on October 16. ... more

Ukrainian central bank bans Russian banknotes, coins depicting occupied territories

The National Bank of Ukraine (NBU) has forbidden local banks and the country's financial institutions to perform any cash transactions using the new banknotes and coins issued by the Russian central ... more

Erdogan says he plans talks with lenders on cutting Turkish interest rates

Turkey's President Recep Tayyip Erdogan said on October 13 that he plans to hold talks with both public and private lenders on how to lower interest rates. He did not say, however, when those ... more