Bulgaria's Trade Deficit Halves in 2009 Y/Y

Bulgaria's foreign trade deficit is on the decline thanks to the economic crisis. Photo by BGNES

Bulgaria had a trade deficit of BGN 10.1 B in 2009, according to final data released Friday by the National Statistical Institute.

Thus, the country’s trade deficit in 2009 was twice smaller than it was in 2008 when it reached almost BGN 20 B. After subtracting the expenditures for transport and insurance of imported goods, Bulgaria’s 2009 trade deficit goes down to BGN 8.5 B.

In 2009, Bulgaria exported goods and services worth BGN 22.9 B, a drop of 23.1% year-on-year. In April 2009, Bulgaria registered the steepest export decline – 39.3% - compared with the same month of 2008.

Bulgaria’s imports amounted to BGN 33 B in 2009, which is a decrease of 32.7% compared with the 2008 levels.

The biggest monthly year-on-year drop in imports was in June 2009 – 41.2% less than in June 2008.

In 2009, Bulgaria’s export declined in almost all sectors as a result of the global economic crisis. The exports of fuel and oils dropped by almost 40%. The greatest decline in imports was of machines (39%), materials (40%), and oils (38%).

Bulgaria’s export to the EU states declined by 16.7% in 2009 year-on-year, and amounted to BGN 14.9 B. Over 75% of that went to Germany, Greece, Italy, Romania, Belgium, and France. There is a substantial percentage increase in the Bulgarian exports to Luxembourg and Portugal.

Bulgaria’s import from the other EU member states dropped by 29% in 2009 amounting to BGN 19.8 B. The greatest drop was registered in the imports from Sweden, Luxembourg, and Belgium. The imports from Italy, Austria, Romania, and Germany. Only the imports from Malta, Portugal, and Estonia.

Overall, Bulgaria had a negative trade balance with the EU stats of BGN 4.9 B in 2009.

In 2009, Bulgaria’s export to third countries declined by 32.6% compared with 2008, and amounted to BGN 8 B. Its major non-EU trading partners were Turkey, Serbia, Russia, Macedonia, Singapore, and the USA, with over 52% of the Bulgarian non-EU exports going to these six countries. The only countries to which Bulgaria’s export increased substantially were Egypt (125%) and Singapore (17%).

Bulgaria’s import from non-EU states in 2009 declined by 38% compared with 2008, and amounted to BGN 13.2 B. Its imports from Bosnia and Herzegovina, Ukraine, and the USA declined by over 45%, while its imports from Kazakhstan, Norway, South Africa, and Saudi Arabia increased.

Bulgaria’s trade balance with non-EU countries in 2009 was negative BGN 5.2 B.

Even though in 2009, Bulgaria’s trade balance was outrightly negative, the gap between imports and exports started to close largely because of the effects of the global economic crisis which shatter Bulgaria’s domestic consumption.

The NSI statistics about the first months of 2010 have shown a slight revival of the Bulgarian export-oriented industries, and a slight improvement of the foreign trade balance. Experts have forecast that Bulgaria will remain with a foreign trade deficit in 2010 but some have expressed hopes the situation might be reversed by the end of 2011.

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