Bulgaria's Current and Capital account deficit stood at EUR 4,542.9 million (13.4% of GDP) in the period January to August 2008, against a deficit of EUR 3,249.6 million (11.2% of GDP) for the same period in 2007, data of the Bulgarian National Bank show.

In August 2008 the Current account was negative and amounted to EUR 227.6 million, compared to a negative account of EUR 265.3 million for the same month in 2007. In the period January – August 2008, the current account deficit was EUR 4,769.7 million (14% of GDP), against a deficit of EUR 3,358.4 million (11.6% of GDP) for the same period in 2007. The main factor for the increase of the current account deficit was the higher (by EUR 1,374.1 million) trade deficit.

The trade deficit in January – August 2008 amounted to EUR 5,748.2 million (16.9% of GDP), compared to a deficit of EUR 4,374.2 million (15.1% of GDP) for the same period in 2007. The trade deficit increase was also due to the increase of crude oil and natural gas prices.

Exports (FOB) amounted to EUR 10,560.9 million against EUR 8630.4 million for the same period in 2007, increasing by 22.4% year on year against 9.6% for the same period in the previous year. Imports (FOB) amounted to EUR 16,309.1 million, against EUR 13,004.5 million for January – August period in 2007, increasing by 25.4% year on year against 17.3% for the same period in the previous year.

The year on year difference in imports growth rates for the reporting period in 2008 and for the same period in 2007 was due to the increase of crude oil and natural gas prices.

The balance on the Services item was positive, amounting to EUR 1,009.9 million (3% of GDP), against a positive balance amounting to EUR 1,056.4 million (3.7% of GDP) for the same period in 2007.

Income (net) item was negative amounting to EUR 559.6 million compared to a negative item of EUR 233.2 million for the same period in 2007.

Net Current transfers amounted to EUR 528.2 million (1.6% of GDP) against EUR 192.6 million (0.7% of GDP) for the same period in 2007.

The Capital account balance was positive amounting to EUR 226.8 million, compared to a positive balance of EUR 108.8 million for the same period in 2007.

The Financial account balance was positive amounting to EUR 6,821.2 million, compared to a positive balance of EUR 6,144.4 million for the same period in 2007.

Foreign direct investment abroad was EUR 403.4 million against EUR 125 million for the same period in 2007. Foreign direct investment in Bulgaria was EUR 2,980.5 million (8.8% of GDP) against EUR 4,154.1 million (14.4% of GDP) for the same period in 2007. The direct investment covered 62.5% of the current account deficit against 123.7% for January – August 2007.

Portfolio investment - assets increased by EUR 140.1 million, compared to a decrease of EUR 48 million for the same period in 2007.
Portfolio investment – liabilities decreased by EUR 126 million. In the period January – August 2007, the liabilities decreased by EUR 248.9 million. Other investment – assets decreased by EUR 312 million, compared to an increase of EUR 205.8 million for the same period in 2007. Other investment – liabilities increased by EUR 4,285.3 million against an increase of EUR 2,586.6 million for January – August 2007.

The item Net errors and omissions was positive, amounting to EUR 141.4 million. For the same period in 2007 the item was negative amounting to EUR 1,248.4 million.

The Overall balance was positive, amounting to EUR 2,419.7 million compared to a positive overall balance of EUR 1,646.3 million for the same period in 2007.
In the period January – August 2008 the BNB reserve assets increased by EUR 2419.7 million.