불가리아 주요 경제뉴스 (9 - 16 March 2012)

BULGARIAN ECONOMIC TOP NEWS DIGEST

WEEKLY REPORT (9 - 16 March 2012)

 

Sections/headline briefs:

 

MACROECONOMY:

v  Bulgaria Sees 2% Inflation Rate Feb 2012 Y/Y 

v  Bulgaria's Exports to EU Up 34% 2011 Y/Y

v  Bulgarian Jan Exports to Non-EU Countries Down 14% M/M

v  Euro zone recession being felt in Bulgaria - Raiffeisen

v  Bulgarian Economy to Grow by 1.2% by End-2012

 

 

INVESTMENTS:

v  Qatar to Invest 100 Million Euros in Three Projects in Bulgaria

v  Bulgaria Sees Fourfold FDI Drop Jan 2012 Y/Y

 

COMPANIES AND INDUSTRIES:

v  Over 100 Bulgarian Companies to Be Presented in Qatar

v  Three companies to bid for Bulgaria's construction firm Technoexportstroy

v  German-Bulgarian Tie-up Top-ranked in Tender To Build Composting Installation in Sofia

v  Bulgaria's KCM to invest EUR 80mn in lead production plant

v  Bulgaria's Maritsa Municipality Set To Get 20 Mln Euro Biomass-fired Power Plant

v  Bulgaria's Jan-Feb Passenger Car Registrations Rise 9.8% - ACEA

v  ASBIS Bulgaria Sees 2012 Turnover Growth Steady at 10%

 

 

 

 

 

Articles:

 

MACROECONOMY:

Bulgaria Sees 2% Inflation Rate Feb 2012 Y/Y

Bulgaria's February inflation rate reached 2% as compared with the same month of 2011, the country's National Statistical Institute has informed. February's monthly inflation was 0.9%. The annual average inflation, measured by the consumer price index over the last 12 months (March 2011 - February 2012) compared to the previous 12 months (March 2010 - February 2011) was 3.8%. According to the Institute, the consumer price index in January 2012 compared to December 2011 was 100.2%, i.e. the monthly inflation was 0.2%. The harmonized index of consumer prices (HICP) in February 2012 compared to January 2012 was 100.6%, i.e. the monthly inflation was 0.6%. The inflationrate since the beginning of the year (February 2012 compared to December 2011) was 0.9% and the annual inflation in February 2012 compared to February 2011 was 2.0%. The annual average inflation, measured by HICP, in the last 12 months (March 2011 - February 2012) compared to the previous 12 months (March 2010 - February 2011) was 3.0%.

 

Bulgaria's Exports to EU Up 34% 2011 Y/Y

In 2011, Bulgarian exports to the EU increased by 33.6% compared to 2010 and amounted to BGN 24.7 B. The flash estimates were released by the National Statistics Institute, NSI, Monday. The main trade partners of Bulgaria were Germany, Romania, Italy, Greece and Belgium, forming 67.4 % of the total exports to the EU Member states. The most significant growths were observed in the exports to Malta, Denmark and Portugal. Falls were registered in the exports to Slovenia and Luxembourg. In December 2011, exports to the EU increased by 20.0% compared to the corresponding month of the previous year and exceeded BGN 1.8 B. Bulgarian imports from the EU in 2011 increased by 22.8% compared to 2010 and amounted to BGN 27 B at CIF prices. The most significant growths were reported on imports from Spain and Cyprus. Decreases were observed in the imports from Malta, Finland, Portugal and Denmark. In December 2011, Bulgarian imports from the EU Member States increased by 16.8% compared to the corresponding month of the previous year and exceeded BGN 2.4 B at CIF prices. The foreign trade balance of Bulgaria (export FOB - import CIF) with EU in 2011 was negative and amounted to BGN 2298 M. At FOB/FOB prices (after elimination of transport and insurance costs on imports) the trade balance was also negative and reached BGN 1035.4 M. The exports of Bulgaria to the EU, distributed according to the Standard International Trade Classification, increased in all sections in 2011 compared to 2010. The largest growths were recorded in the sections "Crude Materials, Inedible (except fuels)", "Chemicals and Related products" and "Manufactured Goods Classified Chiefly by Material". The largest growths on imports from EU were reported in sections "Crude Materials, Inedible (except fuels)". Falls were reported in section "Mineral Fuels, Lubricant and Related Materials".

 

Bulgarian Jan Exports to Non-EU Countries Down 14% M/M

In January 2012, Bulgarian exports to third countries decreased by 14% compared to the corresponding month of the previous year and exceeded BGN 1.0 B. The data was released Monday by the National Statistics Institute, NSI. The main trade partners of Bulgaria were Turkey, the United Arab Emirates, China, the Former Yugoslav Republic of Macedonia, Russia and Serbia, forming 53.1% of the total exports to non EU countries. Exports to United Arab Emirates, Brazil and Republic of Korea increased significantly. The most significant falls were reported on the exports to Singapore, South Africa, Bosnia and Herzegovina and Croatia. Bulgarian imports from third countries in January 2012 increased by 0.9% compared to the corresponding month of the previous year and amounted to BGN 1.4 B (atCIF prices). The most significant growths were reported on imports from Bosnia and Herzegovina, Republic of Korea, Peru, South Africa, Taiwan and India. The largest decreases were observed in the imports from United Arab Emirates, Israel and Georgia. The foreign trade balance of Bulgaria (export FOB - import CIF) with third countries in January 2012 was negative and reached BGN 284 M. The trade balance at FOB/FOB prices (after elimination of transport and insurance costs on imports) was also negative and amounted to BGN 216.5 M. The exports of Bulgaria to third countries, distributed according to the Standard International Trade Classification, decreased in most of the sections in January 2012 compared to the corresponding month of the previous year. The largest fall was reported in section "Mineral Fuels, Lubricants and Related Materials". The largest growth was recorded in the section "Animal and Vegetable Oils, Fats and Waxes". In imports from third countries significant fall was reported in section "Animal and Vegetable Oils, Fats and Waxes". The largest growth was reported in section "Machinery and Transport Equipment". In January 2012, the total value of exported goods to third countries and EUamounted to BGN 2.8 B. Compared to the corresponding month of the previous yearexports decreased by 10.2%. The total value of all imported goods in January 2012 was BGN 3.3 B(at CIF prices), or by 0.2% less than corresponding period of the previous year.

 

Euro zone recession being felt in Bulgaria - Raiffeisen

Economic growth in Bulgaria in 2011 was below expectation, proof that the euro zone recession was being felt by the Bulgarian economy, Raiffeisenbank Bulgaria said in monthly economic report for February. Gross domestic product (GDP) grew by only 0.3 per cent on an annual basis in the last quarter of the year and was only 1.7 per cent for the full year, which was below the two per cent forecast by the bank earlier. Economic slowdown was also seen in the employment figures, with the number of people currently employed diminishing by 15 400. The decrease came exclusively at the expense of the private sector, with the public sector registering a small increase, Raiffeisenbank said. "The shadow of recession in the euro zone, which is a fact according to the Eurostat data, is starting to be felt in the Bulgarian economy," Raiffeisenbank Bulgaria chief economist Kaloyan Ganev said. "The direct effects could be seen in the last months of 2011, when a number of sectors reported a decrease in production, while the profits of Buglarian firms have decreased on an annual basis," he said. "The declines in consumption and investment have reflected these processes, even though households and firms are also influenced by the endless stream of negative information from Europe. The decline in employment additionally worsens the state of the already-weak domestic market," Ganev said. Foreign direct investment in Bulgaria declined from 1.6 billion euro in 2010 to 940 million euro last year. on the positive side, however, the Budget deficit of 1.58 billion leva was lower than the Finance Ministry's target and the country also recorded a surplus on its current account for the first time since 1997.

 

Bulgarian Economy to Grow by 1.2% by End-2012

According to a forecast of Raiffeisen published in last month's report of Raiffeisen Bank Bulgaria, the country's economic growth this year will not exceed 1.2%, which means that the gross domestic product will reach 39.1 billion euro. Last year's growth was 1.7% and the GDP reached 38.5 billion euro. Despite the fifteen thousand newly-registered unemployed in 2011, the bank's experts say individual consumption will increase by at least one percent this year, and the collective one - by 0.4%. However, the export of goods and services is expected to slow down to just 1.3% by the end of the year. Raiffeisen research also says Bulgaria's state debt will increase to 20.7% of the country's GDP this year. At the end of 2011 it was 17% of Bulgaria's GDP.

 

 

INVESTMENTS:

 

Qatar to Invest 100 Million Euros in Three Projects in Bulgaria

Qatar will make an initial investment in Bulgaria of 100 million euros in three projects in tourism, infrastructure and farming, the Amir of Qatar, Sheikh Hamad bin Khalifa Al Thani, said during the official closing ceremony of a business forum in the Qatari capital within Bulgarian Prime Minister Boyko Borissov's three-day official visit there which started on Tuesday. Sheikh Hamad bin Khalifa Al Thani invited Bulgarian producers to pay a visit to his country within the year and organize an exhibition to showcase their products and services. The State of Qatar will provide for its own account the venue for holding the exhibition as a sign of respect and ｅxpression of goodwill towards the Bulgarian Prime Minister and his sincere efforts to achieve results, Sheikh Hamad bin Khalifa Al Thani said. He stressed that all tenders in his country are open and transparent and that anyone can participate. Speaking to journalists in Doha on Wednesday, Bulgarian Economy, Energy and Tourism Minister Traicho Traikov, said that he was convinced that there is an economic project that will attract and justify a Qatari investment in Bulgaria. Traikov said that Qatar is an attractive economic partner to Bulgaria because of its strong ambition, coupled with economic power, to carve out a presence in countries of Northern Africa, the Middle East and the larger region. The Minister explained the weak interest by Qatari business in the forum by the fact that Qatar is not among traditional Bulgarian partners in the region, as it is a small market for Bulgarian goods and services with its 500,000 population. According to the Minister, Qatari companies have to submit projects first, but what should be born in mind is that economic structures in Qatar are highly centralized and decisions about large economic projects are taken by few organizations, among which is Qatar Holdings. "From what we have been hearing at meetings with political structures, we have gained an idea of what they might be interested in, such as projects which combine luxury tourism with well-developed infrastructure," noted Traikov, adding that investments in the Balchik airport, a golf course and luxury tourism were discussed at the meeting between Prime Minister Borissov and his Qatari counterpart. The second area which draws Qatari interest is agriculture. Qatar has made it a strategic priority to secure food independence, said the Minister. Qatar is interested in investments in large areas of consolidated agricultural land. Minister Traikov said that in the past two years Bulgaria has proposed a large number of projects, but Qatari investors are very demanding in terms of rate of return and quality of investment. They did not take interest in the agriculture projects which they had been offered because they were too small. It emerged after a meeting between Bulgarian Agriculture Minister Miroslav Naydenov and Nasser Mohamed Al Hajri, Chairman of the state-owned Hassad Foods, that Qatar is interested in lamb breeding in, and import from, Bulgaria, as well as in growing poultry and grain crops in Bulgaria. The Hassad Foods Chairman said that Qatar can rent out state-owned land in Bulgaria and that such land can be bought by Qatari investors, according to Naydenov's Ministry. He added that his country works in this way in Georgia and is considering applying the model in Romania as well. Naydenov is quoted as saying by the Agriculture Ministry that Bulgaria has over 3 million ha of arable land and needs investment in livestock breeding. Opportunities are also available for investors in the production of rose oil, in the construction of an abbatoir, in acquacultures and in a logistical centre for fruit and vegetables. Hassad Foods also met with representatives of LB Bulgaricum, a leading dairy company in Bulgaria, and the two sides discussed opportunities for licensing Qatari producers to make Bulgarian yogurt and joint development of an innovative line of dairy products, said the Economy Ministry. The Qatari side said they insist to be able to control their investment and to hold a majority interest, and Bulgarian accepts that, Naydenov commented.

 

Bulgaria Sees Fourfold FDI Drop Jan 2012 Y/Y

Bulgaria's foreign direct investments in January 2012 were four times less than in the corresponding month of 2011, according to the Bulgarian National Bank's preliminary data. Foreign companies invested a total of EUR 44.2 M in the country in January, which equals 0.1% of Bulgaria's GDP. In January 2011, foreign direct investmentsreached EUR 186.1 M (0.5% of GDP). The share capital attracted in January amounted to EUR 43 M, or half as much as January 2011. However, an year on year increase has been registered in foreign investments inBulgaria's real estate market – from EUR 5.7 M to EUR 14.8 M in January 2012. South Korea made the largest FDIs in Bulgaria in the first month of the year – EUR 16.6 M, followed by the Netherlands (EUR 6.3 M) and Russia (EUR 4.3 M). Bulgaria's current account deficit in January was EUR 112 M, compared with EUR 67.2 M in January 2011.

 

 

COMPANIES AND INDUSTRIES:

Over 100 Bulgarian Companies to Be Presented in Qatar

Representatives of 103 Bulgarian companies will attend a business forum inQatar's capital Doha, it has been announced. The Bulgarian-Qatari business forum will be the focus of Bulgarian Prime MinisterBoyko Borisov's visit to Qatar that will take place between March 13 and March 15. During his visit, the Bulgarian PM will meet with his Qatari counterpart Sheikh Hamad bin Jassim bin Jaber bin Muhammad Al Thani, as well as with ruling Emir of QatarSheikh Hamad bin Khalifa Al Thani. The main topic in Borisov's talks with the Qatari officials is expected to be the development of the economic relations between Bulgaria and Qatar. The Bulgarian companies that are to attend the business forum include representatives of the food and beverage industry, tourism, the construction and real estate business, pharmacy and others. The Bulgarian business representatives will tell their Qatari colleagues about Bulgaria's investment opportunities in several key sectors, including agriculture, the food and beverage industry, infrastructure, transport, construction and real estates, according to dnevnik.bg.

 

Three companies to bid for Bulgaria's construction firm Technoexportstroy

Three companies have purchased tender documents to take part in the privatisation of the full-stake of the state construction company Technoexportstroy, investor.bg informs. The deadline expired yesterday (March 12, 2012). The bidders are Greece's Aktor (constructing segments of Trakia and Struma Motorways), and two local companies - Advance Properties and AT Engineering 2000. The initial price is set at BGN 68mn (EUR 34.8mn). The public tender will take place on May 2, 2012. Technoexportstroy is headquartered in the capital city of Sofia. It provides project services, which include engineering, design, architectural and similar services; operations and maintenance services, and construction services, which include direct-hire construction and construction management services. 

 

German-Bulgarian Tie-up Top-ranked in Tender To Build Composting Installation in Sofia

The municipality of Sofia said German-Bulgarian tie-up Eggersmann&Co has garnered the top score in a tender to design and build a biological waste treatment installation. Second-ranked was the offer of the Arge Bogorov DZZD consortium, the only other candidate that advanced to this stage of the procedure, the municipality said in a statement published on its website last week. The planned installation is part of a project for an integrated municipal waste treatment system. According to local trade publication Gradat (www.gradat.bg), Eggersmann&Co is formed by Germany's Eggersmann and Bulgarian companies Diana komers-1 andAT Engineering 2000. Gradat also reported that Eggersmann&Co has offered to build the composting installation for 46.6 million levs ($31.3 million/23.8 million euro) inclusive of Value Added Tax. Sofia's 1.3 million residents produce some 390,000 tonnes of waste annually.

 

Bulgaria's KCM to invest EUR 80mn in lead production plant

Non-ferrous metals refining plant KCM, located near the southern city of Plovdiv, started the construction of a new plant for lead production, investor.bg informs. The investment is estimated at EUR 80mn. The new facility, which is expected to be inaugurated in September 2013, will produce 71,000 tons of lead annually with reduced energy costs and higher labour productivity. The new technology will not harm the environment and secures safe labour conditions. In September 2010, KCM signed a EUR 95mn investment loan agreement with the EBRD and Bulgaria's largest bank UniCredit Bulbank. The credit was to finance a refurbishment of its zinc and lead production facilities aimed at reducing harmful gas emissions and energy consumption (by 50% in lead production and by 30% in zinc production), raising profitability and cutting maintenance expenditures. KCM is the largest lead and zinc smelter on the Balkans, producing LME-registered high-grade metals and alloys. The company has capacity to produce 75,000 tonnes of zinc and 65,000 tonnes of lead. It employs 800 workers. 

 

Bulgaria's Maritsa Municipality Set To Get 20 Mln Euro Biomass-fired Power Plant

The Bulgarian municipality of Maritsa said on Thursday that Spanish energy group Electra Holding plans to build on its territory a 20 million euro ($26.1 million) biomass-fired co-generation power plant. The construction of the facility on 2.0 hectares near the village of Stroevo is expected to begin this summer, the municipality said in a statement issued after a meeting between Electra Holding president Jose Oskar Leiva Mendez and Maritsa mayor Dimitar Ivanov. The power plant, which will have a 5.0 megawatt (MW) installed capacity for electric energy and a 6.0 MW capacity for heating energy, will burn through 40,000 tonnes of biomass annually. The project, which will create 15 new jobs, is the first of ten similar investment initiatives that Electra Holding plans to carry out in the country over the next two years, the statement said. The municipality of Maritsa is located in central Bulgaria, near the city of Plovdiv.

 

Bulgaria's Jan-Feb Passenger Car Registrations Rise 9.8% - ACEA

New passenger car registrations in Bulgaria rose by 9.8% to 2,600 in the first two months of this year, the European Automobile Manufacturers Association, ACEA, said. In February alone, Bulgaria's new passenger car registrations went up by 12.7% on the year to 1,315, ACEA said in a statement published on its website on Wednesday. New car registrations in the EU, excluding Malta, decreased by 8.3% to 1.86 million in the January-February period, ACEA said.

 

ASBIS Bulgaria Sees 2012 Turnover Growth Steady at 10%

 ASBIS Bulgaria, the Bulgarian unit of Cyprus-based computer components supplier ASBIS, said on Thursday it expects that its turnover will grow by 10% in 2012, as much as it did last year. The company's turnover totalled 52 million levs ($34.7 million/26.6 million euro) in 2011, it said in a statement. ASBIS Bulgaria increased its share of the local laptop market by nearly a third to 16% in 2011, it added. According to the company, the local IT market saw sales drop by a quarter last year, as the laptop segment fell more sharply than the desktop segment. Tablets accounted for between six and 10% of the local PC market last year. We expect a fall by at least 15% in the local IT sector in 2012,"ASBIS Bulgarias general manager Martin Karakolev said. ASBIS is present in 25 countries. The company posted a total turnover of $1.5 billion (1.14 billion euro) for 2011.

 

 

 

 

Reported by:

Georgi Iliev

KOTRA Sofia

Korea Trade-Investment Promotion Agency

Commercial Section of the Embassy of the Republic of Korea