Bulgaria became three times more economically dependent on Russia
From the Facebook profile of Lachezar Borisov
For the first five months of the year, Bulgaria became three times more economically dependent on Russia, compared to a year earlier
The diversification of supplies led to an outflow of over BGN 3 billion more to the Russian Federation
Last week, the BNB published its new economic forecast, from which it became clear that GDP will grow by less than 2%. It is also clear that the contribution of the net amount to the GDP is deteriorating and that you will have a growth in the negative balance on the current account of the balance of payments, which from your side means an outflow of financial resources from the Bulgarian economy.
Where is the money flowing out of the Bulgarian economy at the moment?
On 13.07.2022 NSI published data on the country’s trade in goods for the period January-April 2022, as well as data on trade with countries outside the EU (third countries) for the period January-May 2022, compared with the same period of the previous year.
NSI showed us the following:
• The total amount of the first four months of the year increased in nominal terms by 33.6%, while imports increased by 40.5%. Thus, the trade balance worsened by nearly BGN 2 billion, compared to a year earlier. This, in turn, confirms the deterioration of the country’s external performance and the contribution of the net amount to the creation of GDP.
• At the same time, again according to NSI data, for the period January-April 2022, the negative trade balance with Russia reached BGN 3.74 billion compared to BGN 1.27 billion a year earlier. The deterioration of the trade balance with the Russian Federation amounts to over BGN 2.46 billion, which is more than the deterioration of Bulgaria’s entire trade balance. Our country’s imports from the Russian Federation have grown by 160.8%, which, together with the data on the trade balance, clearly shows where capital is flowing out of Bulgaria.
• Even more clear and distinct are given to the NSI for the period January-May 2022 regarding Bulgaria’s trade with third countries. The negative trade balance of our country with the Russian Federation reached BGN 4.67 billion compared to BGN 1.62 billion for the following period of the previous year. The deterioration is almost 3 times, and the growth of imports from Russia is 158%.
Outputs are:
• For the period January-May 2022, Bulgaria became 3 times more economically dependent than the Russian Federation in terms of its trade?
• What is happening to the diversification of supplies within our international trade that imports from Russia are growing by 160%?
• Is this the Euro-Atlantic orientation of the Bulgarian economy?
• Why did more than BGN 3 billion flow out of Bulgaria to the Russian Federation in the first five months of the year, in the same period of the previous year?
• Does Bulgaria work in favor of foreign economies?