Capital Comes and Goes, Balance of Payments Remains Positive

Capital Comes and Goes, Balance of Payments Remains Positive

Foreign direct investments in Bulgaria have marked a record growth during the past year, statistics showed. They exceeded 1.5 billion euro. Meanwhile, the Bulgarian National Bank reported about a record outflow of capital from the country in 2015, reaching the level of 3.3 billion euro. At the backdrop of these data, the balance of payments of this country is allegedly positive and experts claim surplus reaches 165.5 million euros.
The seeming contradiction actually shows other processes.
If the balance of payments was positive despite the increased outflow of money from the country, then this outflow was compensated by additional revenues. Additional revenues can only come from exports, which are constantly growing. This is a sign that the Bulgarian economy has been developing well and this fact is also recognized by foreign partners. Further evidence that the Bulgarian economy has been successful is the fact that it was possible for over 3 billion euro to leave this country without causing any shocks. Moreover, this money came from the successful business of subsidiaries of large western companies operating in the country and it also reduces intercompany indebtedness.


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