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Trade deficit grows slower than capital goods imports.
submited on 26.05.2005 in category Monetary policy | Macroeconomic developments
submited on 26.05.2005 in category Monetary policy | Macroeconomic developments
BNB latest data on the nominal volumes of foreign trade (i.e. measured in Euro) is a basis to estimate the real growth in trade. Both exports and imports have been growing by some 13% y-o-y till March. The trade deficit increased by EUR 444 million.
The whole increase of the trade deficit is covered by the increase in capital goods imports – by EUR 734 million. It is the foreign capital inflows, not the redustion of domestic savings, that brings about the trade deficits currently in Bulgaria. Thus we do not consider it a macroeconomic risk.
The imports structure keeps on changing towards bigger share of consumer and capital goods and shrinking share of raw materials and energy resources. The expected decrease of the share of raw materials was slowed down by the quick increase of the importation of ore and metals in the last two years.
Consumer goods imports grew by some 26%, which is significantly faster than a year earlier. However it is importnat to note that this increase has been entiurely compensated by increase of exports of consumer and capital goods.
The whole increase of the trade deficit is covered by the increase in capital goods imports – by EUR 734 million. It is the foreign capital inflows, not the redustion of domestic savings, that brings about the trade deficits currently in Bulgaria. Thus we do not consider it a macroeconomic risk.
The imports structure keeps on changing towards bigger share of consumer and capital goods and shrinking share of raw materials and energy resources. The expected decrease of the share of raw materials was slowed down by the quick increase of the importation of ore and metals in the last two years.
Consumer goods imports grew by some 26%, which is significantly faster than a year earlier. However it is importnat to note that this increase has been entiurely compensated by increase of exports of consumer and capital goods.
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