Trade credit insurer Atradius has published its latest trading insight report on Bulgaria.
The Bulgaria Country Report follows on from recent Atradius reports on Hungary and Romania and is part of a suite of publications on global markets for businesses trading overseas. With up-to-date insights critical to managing the risks of trade, Atradius is an unrivalled source of information and supports businesses along every stage of their export journey.
Highlights from the Bulgaria Country Report:
· The recession in Bulgaria, triggered by the coronavirus pandemic, reached its preliminary peak in Q2 of 2020 when GDP contracted 10% quarter-on-quarter.
· Bulgaria’s economy is expected to contract 4.3% in 2020 with real fixed investment down more than 8%, exports down more than 10% and industrial production down almost 5%.
· Tourism, usually generating 11% of GDP, is among the sectors hit hardest by the pandemic with tourist arrivals in August 2020 more than two-thirds lower year on year.
· Atradius’ Industries Performance Forecast gives the Agriculture, Chemicals/Pharma, Electronics/ICT and Food sectors a ‘good’ outlook while the Automotive, Consumer Durables, Financial Services, Machines/Engineering, Metals and Paper sectors have a ‘fair’ outlook. Atradius has forecast a ‘poor’ outlook for the Construction, Services, Steel and Textiles sectors and a ‘bleak’ outlook for the Shipping/Transport sector.
· It is currently expected that GDP will rebound by almost 4% in 2021 with exports and investments increasing about 7% and 13% respectively.
· Recovery is largely dependent on the impact and duration of the pandemic in Bulgaria and Europe.