Bulgaria's Current and Capital account deficit stood at EUR 5,145.9 million (15.1% of GDP) in the period January - September 2008, against a deficit of EUR 3,761.9 million (13% of GDP) for the same period in 2007, data of the Bulgarian National Bank (BNB) show.

In September 2008 the Current account was negative and amounted to EUR 535.5 million, compared to a negative account of EUR 541.8 million for the same month in 2007. In the period January - September 2008, the current account deficit was EUR 5,381.3 million (15.8% of GDP), against a deficit of EUR 3,900.2 million (13.5% of GDP) for the same period in 2007. Main factors for the increase of the current account deficit were the higher (by EUR 1,469.5 million) trade deficit and the higher (by EUR 298.7 million) income deficit.

The trade deficit1 in January - September 2008 amounted to EUR 6,448.5 million (19% of GDP), compared to a deficit of EUR 4,979 million (17.2% 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 11,965 million against EUR 9,829.6 million for the same period in 2007, increasing by 21.7% yoy against a growth rate of 10.1% for the same period in the previous year. Imports (FOB) amounted to EUR 18,413.5 million, against EUR 14,808.6 million for January - September period in 2007, increasing by 24.3% year on year against a growth rate of 18% for the same period in the previous year.

The difference in imports growth rates year on year 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 1,206.1 million (3.5% of GDP), against a positive balance amounting to EUR 1,230.3 million (4.3% of GDP) for the same period in 2007. Income (net) item was negative amounting to EUR 676.7 million compared to a negative item of EUR 377.9 million for the same period in 2007.

Net Current transfers amounted to EUR 537.8 million (1.6% of GDP) against EUR 226.4 million (0.8% of GDP) for the same period in 2007. The Capital account balance was positive amounting to EUR 235.4 million, compared to a positive balance of EUR 138.3 million for the same period in 2007.

The Financial account balance was positive amounting to EUR 8,302.3 million, compared to a positive balance of EUR 7,915 million for the same period in 2007.

Foreign direct investment abroad was EUR 414.5 million against EUR 140.1 million for the same period in 2007.1 Foreign direct investment in Bulgaria2 was EUR 3,659.8 million (10.8% of GDP) against EUR 4,715.2 million (16.3% of GDP) for the same period in 2007. The direct investment covered 68% of the current account deficit against 120.9% for January - September 2007.

Portfolio investment - assets increased by EUR 211.3 million, compared to a decrease of EUR 97.7 million for the same period in 2007. Portfolio investment - liabilities decreased by EUR 242.6 million. In the period January - September 2007, the liabilities decreased by EUR 288.4 million.

Other investment - assets decreased by EUR 642.3 million, compared to a decrease of EUR 362.8 million for the same period in 2007. Other investment - liabilities increased by EUR 4,953.8 million against an increase of EUR 3,218.7 million for January - September 2007.

The item Net errors and omissions was negative, amounting to EUR 436.4 million. For the same period in 2007 the item was negative amounting to EUR 1,166.7 million.

The Overall balance was positive, amounting to EUR 2,720.1 million compared to a positive overall balance of EUR 2,986.4 million for the same period in 2007.

In the period January - September 2008 the BNB reserve assets increased by EUR 2,720.1 million.