불가리아 주요 경제뉴스 (7 – 12 January 2011 )

BULGARIAN ECONOMIC TOP NEWS DIGEST

WEEKLY REPORT (7 – 12 January 2011 )

 

Sections/headline briefs:

 

MACROECONOMY:

Bulgaria's Exports to Third Countries Up 46.9%, Imports Up 4.6%

Bulgarian Trade with EU Increases in January-October 2010 Y/Y

Foreign trade gap narrows by 45% in Jan-Nov

Bulgaria's Economy Shows Signs of Revitalization as Import Hikes by 40%

 

INVESTMENTS:

 

South Korea Expects Bulgaria to Be Gateway to EU

China National Electric Equipment Corporation Interested in Participation in Energy Projects in Bulgaria

 

 

COMPANIES:

Maritsa East II electricity output up by 1.2% y/y in 2010

Bulgarian Road Constructors to Build Highways in Ukraine

Japan Interested in Importing Bulgarian Poultry and Red Wine

Swedish Company to Relocate Production to Bulgaria

Bulgarian Co Launches LED Screen with Solar Charger

 

 

 

 

 

 

 

Articles:

 

MACROECONOMY:

 

Bulgaria's Exports to Third Countries Up 46.9%, Imports Up 4.6%

Sofia, January 10 (BTA) - In January-November 2010 Bulgaria's exports to third countries rose by 46.9 per cent from the like period of the previous year, reaching 10,700 million leva, the National Statistical Institute said Monday. Imports from third countries increased by 14.6 per cent totaling 13,900 million leva (at CIF prices).Bulgaria's major trade partners are Turkey, Serbia, Russia, Macedonia, Ukraine, the US, Singapore and China; they account for 57 per cent of its exports to third countries. Bulgarian exports to China went up by 140.6 per cent, and to Ukraine by 104 per cent. Exports to Russia rose by 53. per cent, to Serbia by 50.6 per cent, to Macedonia by 36.5 per cent, to the US by 9.8 per cent. There is a considerable increase in goods sold to Peru, the Republic of Korea, India, Vietnam and Brazil. There is a drop in Bulgarian exports to the United Arab Emirates, Bosnia and Herzegovina, Indonesia, Singapore, Albania and Egypt. In November 2010, Bulgarian sales to third countries was up 46.6 per cent from November 2009, totaling over 1,000 million leva. Largest is the increase in Bulgarian imports from Egypt, Albania and Israel. Imports from Peru upped by 62.2 per cent and from Bosnia and Herzegovina by 46.9 per cent. Purchases from Kazakhstan, South Africa and Norway saw the steepest decline. In November 2010, Bulgarian imports from third countries were up by 45 per cent compared with November 2009, reaching 1,600 million leva (at CIF prices). Bulgaria posted a deficit of 3,200 million leva in its trade with third countries (FOB exports, CIF imports) in January-November 2010. In November 2010 there was a deficit of 465,700 million leva in the trade with third countries (FOB exports, CIF imports). Bulgarian export to third countries, distributed in accordance with the standard commercial classification, increased in most sectors in January-November 2010 compared with the like period of 2009. As far as imports are concerned, the largest rise was registered in mineral fuels, lubricants and other similar products; the smallest increase was in the food and live animals sector. KH

 

Bulgarian Trade with EU Increases in January-October 2010 Y/Y

Sofia, January 10 (BTA) - Bulgarian export to the European Union increased by 23.5 per cent between January and October 2010 compared to the same period of 2009 and amounted to 15,200 million leva, the National Statistical Institute said Monday. Bulgarian import from the EU between January and October 2010 increased by 7.1 per cent compared to the previous year and amounted to 17,500 million leva at CIF prices. Bulgaria's main trade partners were Germany, Italy, Romania and Greece that formed 61.6 per cent of the total export to the EU Member States. The export to Italy increased by 39.1 per cent and that to Romania by 33.3 per cent. The most significant growths were registered in the export to Luxembourg, Estonia and Slovenia. The export to Denmark and the Czech Republic increased by 61.4 per cent and 52.6 per cent respectively. The most notable falls were registered in the export to Belgium and Cyprus. Export to the EU increased by 20.2 per cent in October 2010 compared to the same month of 2009 and reached 1,800 million leva. For the period between January and October 2010, the most significant growths were registered in the import from Malta, by 275.4 per cent, and Portugal, by 89.5 per cent. The largest decreases were observed in the import from Estonia, the Czech Republic and Denmark. Bulgarian import from the EU Member States increased by 11.4 per cent in October 2010 compared to the same month of 2009 and amounted to 2,100 million leva at CIF prices. The foreign trade balance of Bulgaria (export FOB - import CIF) with the EU between January and October 2010 was negative and amounted to 2,300 million leva. More goods were exported from the prevailing part of the sections during the first ten months of 2010 in comparison with the same period of 2009. The largest growths were registered in the sections "Crude materials, inedible (except fuel)" and "Chemical and related products." A fall was observed only in the export of one section - "Beverages and tobacco." The largest growths in import from the EU were registered in sections "Crude materials,inedible (except fuel)" and "Mineral fuel, lubricants and related materials," and the lowest growth was observed in section "Machinery and transport equipment." LI/DS

 

Foreign trade gap narrows by 45% in Jan-Nov

Bulgaria’s foreign trade gap narrowed by 45% on the year to BGN 4.052bn in January to November, as exports grew faster than imports, statistics office preliminary data showed. In FOB/CIF prices, the trade deficit shrank by BGN 3.1bn on the year to 6.1bn. Exports(FOB)rose by 31.8% y/y to BGN 27.7bn, while imports (FOB) increased by 11.7% to BGN 33.8bn. In November alone, the country’s foreign trade deficit reported annual growth for the first time in 2010, increasing by 64% y/y to BGN 807mn. In FOB/CIF prices, the gap widened to over BGN 1bn. Annual imports growth reached its five-year high of 39.2% to BGN 3.9bn in November, while exports rose by 33.3% y/y to BGN 2.83bn. In the first 10 months of 2010, Bulgaria’s exports to its major foreign partners - the EU countries increased by 23.5% year-on-year to BGN 15.2 bn, as exports to Germany, Italy, Romania and Greece accounted for 61.6% of the overall exports to the EU. At the same time, Bulgaria’s imports (CIF) from the EU for the first ten months of 2010 increased by 7.1% year-on-year to BGN 17.5 bn through October. In October alone, Bulgaria’s imports from EU member-states rose by 11.4% y/y to BGN 2.1 bn.

 

Bulgaria's Economy Shows Signs of Revitalization as Import Hikes by 40%

Bulgaria's economy is showing signs of post-crisis recovery - in November 2010, the country's import rate hiked by 39.1% hitting 3.64 billion levs. As domestic consumption is still shrinking, the import hike most probably owes itself to increasing foreign investments or import of raw materials for the industry. In either case, import rate hike is a piece of good news at the beginning of 2011, although it is still far away from its pre-crisis levels. Export rate also increased by over 33% in the penultimate month of 2010, the national statistical institute said. However, the considerable increase in the country's import rate has widened the foreign trade gap to 807 million levs. This is a precedent, as the foreign trade gap had been shrinking until October 2010. 

 

 

INVESTMENTS:

South Korea Expects Bulgaria to Be Gateway to EU

Sofia, January 10 (BTA) - South Korea expects Bulgaria to be the gateway for foreign companies to the EU, South Korean Ambassador in Sofia Chun Bee-ho told a news conference on Monday after a delegation of the Atlantic Club of Bulgaria (ACB) ended a one-week visit to his country at the invitation of its government. South Korea's free trade agreement with the EU, which will become effective on July 1, will boost bilateral trade and investment, the Ambassador said. In order to expand industrial cooperation, Seoul proposed to Sofia to hold a meeting on the matter in March for the first time in the history of bilateral relations, Ambassador Chun said. The agenda of the meeting may include renewable energy and the participation of Korean companies in the privatization of Bulgarian enterprises and in waste water treatment projects, among other topics. ACB Board member Maxim Behar, who travelled to South Korea together with ACB President Solomon Passy, said that a company in the Far Eastern country shows great interest in tractor assembly in Bulgaria. The company exports tractors to over 40 countries and is almost certain to choose Bulgaria for an assembly operation which will export its products to the rest of Europe, Behar said.

While in South Korea, the Bulgarian delegation held talks with the Cyber Logistics company which, according to Behar, is in the middle of serious negotiations to build an information centre in Bulgaria, its largest one outside Korea. Behar said this is a "huge project" which will provide jobs to thousands of Bulgarian software experts. He and Passy also met with the management of Samsung Heavy Industries, which is very interested in investing in Bulgaria's Varna Shipyard. They also conferred with officials of a large software corporation on possible outsourcing to Bulgaria.

Passy noted that Bulgaria's foreign policy is not limited to the EU. Bulgaria know-how in handling communism and establishing democracy in a communist country could be used in the EU's relations with North Korea, thus assisting all positive processes on the Korean Peninsula, Passy said. The EU may not have a "magic wand" with which to resolve the Korean question overnight, but it can contribute substantially to the broader international efforts to this end, he said. Passy also discussed Korea during talks at the US Department of State and the Pentagon. He returned from the US on Sunday. As a result of the visits to South Korea and the US, the ACB sent a letter to the EU High Representative for Foreign Affairs and Security Policy, Baroness Catherine Ashton, urging her to make sure that the EU does its duty for pacifying the Korean Peninsula, Passy said. Copies of the letter were sent to European Commission President Jose Manuel Barroso, European Council President Herman Van Rompuy, European Parliament President Jerzy Buzek and Bulgarian Foreign Minister Nickolay Mladenov. VE

China National Electric Equipment Corporation Interested in Participation in Energy Projects in Bulgaria

Sofia, January 10 (BTA) - Representatives of one of the three largest Chinese energy corporations have declared interest in participation in energy sector projects in Bulgaria, the Government information service said Monday. The interest was declared at a meeting with Deputy Prime Minister Simeon Djankov and Economy, Energy and Tourism Minister Traicho Traikov held at the Council of Ministers. In the course of the talks with representatives of the China National Electric Equipment Corporation (CNEEC) the sides discussed the opportunities for its participation in large-scale and smaller energy projects in Bulgaria. The Chinese specialists took into account the solid Bulgarian experience in the field of nuclear energy, as well as the considerable potential of the Bulgarian energy market. Djankov and Traikov underscored that the government is interested in attracting more Chinese investments in Bulgaria. The opportunities for cooperation in the energy field and the scope of CNEEC's intentions will further be discussed at expert level./

 

COMPANIES:

Maritsa East II electricity output up by 1.2% y/y in 2010

The biggest thermal power plant in Bulgaria, Maritsa East II, produced 8.3mn MWh of electricity in 2010, which was a 1.2% y/y increase, Investor.bg reported. The company said it managed to exceed the 2009 output although it used only seven of its eight units. The company supplied by 0.4% more electricity to the national grid over the year. The eight units of the coal-fired plant have a combined production capacity of 1,556MW at present. The plant, which is part of the , was commissioned in the period 1963-1969 and is located at the Maritsa East lignite coal mining complex in southern Bulgaria.

 

Bulgarian Road Constructors to Build Highways in Ukraine

Bulgarian companies may take part in tenders for the realization of road and infrastructure construction projects in the Autonomous Republic of Crimea. They may table individual bids or establish partnerships with Ukrainian ventures. The news was broken by Mr. Dancho Simeonov, District Governor of the Coastal City of Varna, who took part in a big infrastructure development forum in Crimea and set up ties with the local government. The projects will be financed by Ukrainian banks or through concessions. The largest road construction project entails the construction of the E-97 European Transport Corridor and is worth US $1.3 billion. The second largest project costs $750 million and involves repairing a 109-km road near Crimea's city of Yalta. 

 

Japan Interested in Importing Bulgarian Poultry and Red Wine

Sofia, January 10 (BTA) - Japan is showing interest in the import of poultry and red wine, the Ministry of Agriculture and Food said after a meeting between Minister Miroslav Naydenov and newly appointed Japanese Ambassador here Makoto Ito. Minister Naydenov described as "unique Bulgarian ambassador" the starter culture for yoghurt - well known and received in Japan. There are good chances for extending cooperation in this sector, he added. Other Bulgarian dairy products, such as white cheese and yellow cheese, are also well accepted on the world markets.

On his part, the Japanese Ambassador said that there is an interest in increasing commodity exchange and, in particular, the import of Bulgarian poultry meat in Japan. Japan will consider carefully this opportunity provided that the Bulgarian-issued certificates comply with the sanitary requirements and the quality and the price of the Bulgarian poultry meat are competitive, the Ambassador added. Ambassador Ito explained that for some years now his country has been importing poultry from Brazil while imports from Asia have been considerably reduced due to the bird flu foci there. The two sides agreed that the export of wine to Japan offers one of the most attractive opportunities for extending two-way trade. Japan seeks diversity on the market and Bulgarian wine, particularly, red wine could be very well received there. /TK/

Swedish Company to Relocate Production to Bulgaria

The Swedish company Atlas Copco is considering a plan to relocate productionof light compaction equipment from Ljungby, Sweden, to the Bulgarian town of Ruse. "The considered plan is in line with our ambition to constantly improve the operational efficiency and make sure our production is cost competitive," Björn Rosengren, Atlas Copco's Business Area President, Construction and Mining Technique, has commented on Tuesday. The company has negotiations with unions regarding the scheduled move. The plan will affect 69 of the company's employees in Sweden. The relocation is expected to be carried out by the end of 2011. The factory inRuse would need to be extended in order to house the new production line and current machining would be outsourced to sub-suppliers. Atlas Copco is an industrial group, which producec compressors, construction and mining equipment, power tools and assembly systems.

Bulgarian Co Launches LED Screen with Solar Charger

The Bulgarian company "Megatex" has created a screen combining LED technology with renewable solar energy, the company announced Tuesday. "Megatex" is to launch soon on the market a LED display which has a solar charging panel inside. It is the first such product in the world. The panel has a 5 KW power to charge the screen. The new screen will be used outdoors and can be installed on stadiums; it can be used for concerts or as a billboard. one of its great advantages is that it can be mounted at places without electric power supply. "Megatex" is a company dealing entirely with LED and LCD technologies. It sells its products on European, Asian, American and African markets. A similar technology was seen during the 2008 Olympic games in Beijing when the Chinese built a wall of 2 292 LED displays using photo-voltaic chargers.