site.btaOctober Current Account Records Deficit of EUR 308.9 Mln - Central Bank

The current account recorded a deficit of EUR 308.9 million in October 2024, compared with a deficit of EUR 51 million a year earlier, the Bulgarian National Bank said.

In January-October 2024, the current account recorded a surplus of EUR 1,265 million (1.2% of GDP), compared with a surplus of EUR 722.9 million (0.8% of GDP) a year earlier.

The balance on goods recorded a deficit of EUR 789.7 million in October 2024, compared with a deficit of EUR 457 million in October 2023. In January-October 2024, the balance on goods recorded a deficit of EUR 3,927.4 million (3.9% of GDP), compared with a deficit of EUR 2,763.1 million (2.9% of GDP) a year earlier. 

Exports of goods totalled EUR 3,819.6 million in October 2024, up by EUR 26.5 million (0.7%) from EUR 3,793.1 million in October 2023. In January-October 2024, exports of goods totalled EUR 35,843.1 million (35.1% of GDP), down by EUR 830.6 million (2.3%) year-on-year. In January-October 2023, exports decreased by 7.3% year-on-year. 

Imports of goods totalled EUR 4,609.3 million in October 2024, up by EUR 359.2 million (8.5%) from October 2023 (EUR 4,250.1 million). In January-October 2024, imports of goods totalled EUR 39,770.4 million (39% of GDP), increasing by EUR 333.7 million (0.8%) from a year earlier. In January-October 2023, imports decreased by 9.4% year-on-year.

Services recorded a surplus of EUR 529.9 million in October 2024, compared with a surplus of EUR 601.5 million in October 2023. In January-October 2024, services recorded a surplus of EUR 6,595.3 million (6.5% of GDP), compared with a surplus of EUR 6,645.3 million (7% of GDP) a year earlier.

The net primary income (which reflects the receipt and payment of income related to the use of resources, such as labour, capital, land, taxes on production and imports, and subsidies) recorded a deficit of EUR 112.1 million in October 2024, compared with a deficit of EUR 344.4 million in October 2023. In January-October 2024, the primary income balance was in deficit of EUR 2,165.3 million (2.1% of GDP), compared with a deficit of EUR 3,979.8 million (4.2% of GDP) a year earlier.

The net secondary income (which reflects the redistribution of income) recorded a surplus of EUR 63 million, compared with a surplus of EUR 148.9 million in October 2023. In January-October 2024, the net secondary income recorded a surplus of EUR 762.3 million (0.7% of GDP), compared with a surplus of EUR 820.4 million (0.9% of GDP) a year earlier.

The capital account recorded a surplus of EUR 97.9 million, compared with a surplus of EUR 89.6 million in October 2023. In January-October 2024, the capital account recorded a surplus of EUR 1,377.9 million (1.4% of GDP), compared with a surplus of EUR 1,139.3 million (1.2% of GDP) a year earlier. 

The financial account recorded a deficit of EUR 897.4 million in October 2024, compared with a deficit of EUR 193.5 million in October 2023. In January-October 2024, the financial account recorded a net inflow of EUR 75.5 million (0.1% of GDP), compared with an inflow of EUR 903 million (1% of GDP) a year earlier.

The balance on direct investment was negative at EUR 184.5 million, compared with a negative balance of EUR 118.9 million in October 2023. In January-October 2024, direct investment recorded an outflow of EUR 730.4 million (0.7% of GDP), compared with an outflow of EUR 2,989.5 million (3.2% of GDP) a year earlier. 

The balance on portfolio investment was positive at EUR 433.6 million, compared with a positive balance of EUR 499.9 million in October 2023. In January-October 2024, the balance was positive at EUR 2,198.7 million (2.2% of GDP), compared with a positive balance of EUR 2,543.6 million (2.7% of GDP) a year earlier.

The balance on other investment was positive at EUR 1,008.6 million, compared with a positive balance of EUR 97.4 million in October 2023. In January-October 2024, the balance was positive and stood at EUR 1,615.6 million (1.6% of GDP), compared with an inflow of EUR 3,285.8 million (3.5% of GDP) a year earlier. 

The BNB reserve assets decreased by EUR 2,192.1 million in October 2024, compared with a decrease of EUR 678.4 million in October 2023. In January-October 2024, they decreased by EUR 3,037.9 million (3% of GDP), compared with a decrease of EUR 1,957 million (2.1% of GDP) a year earlier.

According to preliminary data, the net flows of foreign direct investment in Bulgaria presented according to the directional principle recorded a positive value of EUR 1,241.2 million (1.2% of GDP) in January-October 2024, down by EUR 2,325.6 million (65.2%) from a year earlier (positive value of EUR 3,566.8 million, 3.8% of GDP). Foreign direct investment in Bulgaria recorded a net inflow of EUR 199.5 million in October 2024, compared with an inflow of EUR 185.8 million in October 2023. 

Equity (acquisition/disposal of shares and equities in cash and contributions in kind by non-residents in/from the capital and reserves of Bulgarian enterprises, and receipts/payments from/for real estate deals in the country) recorded a positive value of EUR 47.4 million in January-October 2024, down by EUR 721.1 million from EUR 768.5 million a year earlier.

Reinvestment of earnings was estimated at a positive value of EUR 1,296.8 million in January-October 2024, compared with a positive value of EUR 2,819.9 million a year earlier.

The largest net direct investment inflows in Bulgaria in January-October 2024 were from Austria (EUR 402.4 million), the Netherlands (EUR 309.1 million) and Greece (EUR 255.8 million). The largest net outflows were to Luxembourg (EUR 294.5 million) and the United States (EUR 257.7 million). 

According to preliminary data, direct investment abroad in January-October 2024 totalled EUR 510.9 million (0.5% of GDP), compared with EUR 577.4 million (0.6% of GDP) a year earlier. Direct investment abroad recorded a positive value of EUR 15 million in October 2024, compared with a positive value of EUR 66.9 million in October 2023.