Economic Cooperation Between Bulgaria and Korea - Seminar Highlights and Macroeconomic Indicators
"Discover the potential for economic cooperation between Bulgaria and Korea through an international seminar held in Sofia. Learn about Bulgaria's strategic location, macroeconomic indicators, and balance of payments. Explore opportunities for growth and collaboration in this dynamic partnership."
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Economic Cooperation between Bulgaria and Korea - International Seminar Sofia, February 24, 2015
Republic of Bulgaria Republic of Bulgaria Country Profile Country Profile Bulgaria is situated in the South-East of the Central Europe, in the Balkan Peninsula and shares a border with Turkey and Greece to the south, Macedonia and Serbia to the west, Romania to the north and the Black Sea to the east. Area - 110,910 sq. km The relief of Bulgaria is varied. In the relatively small territory of the country there are extensive lowlands, plains, hills, low and high mountains, many valleys and deep gorges.
S STRATEGIC TRATEGIC LOCATION LOCATION Transport infrastructure The crossroad geographical situation of Bulgaria is defined by the five trans - European corridors between Europe, Asia and Africa. These are the most important capital of the country in the international relations. These are Corridor 4 from Scandinavian countries through Poland and Hungary towards Greece; Corridor 8 from Adriatic Sea to the Black Sea, Corridor 9 from Scandinavian countries through Saint Petersburg and Kiev to Greece and Turkey; corridor 10 from Western and Central Europe to India and the River Corridor 7 from Nordic Sea to the Black Sea via the Danube river.
Macroeconomic Indicators Macroeconomic Indicators 8 6 Real GDP Growth (%) 5 6 4 4 3 2 2 1 0 0 -1 -2 -2 -4 -3 -6 -4 2007 2008 2009 2010 2011 2012 2013 2014 Output gap in BG (rhs) Bulgaria EU
Macroeconomic Macroeconomic Indicators Indicators cont. cont. Unemployment rate (%) 14 12 10 8 6 4 2 0 2007 2008 2009 2010 2011 2012 2013 2014 Bulgaria EU
Macroeconomic Indicators Macroeconomic Indicators cont. cont. Inflation (%) 14 12 10 8 6 4 2 0 -2 -4 2007 2008 2009 2010 2011 2012 2013 2014 Bulgaria EU
Balance of Payments Balance of Payments 10,000 Capital and Financial Account Mln. Euros, Annual data 6,000 FDI 2,000 -2,000 Trade Balance -6,000 Current account -10,000 IVV III VI XIIIII VI XIIIII VI XIIIII VI XIIIII VI XIIIII VI XIIIII VI IVV IXX IVV IXX IXX IVV IXX IVV IXX IVV IXX IVV IXX VIII XII VIII VIII VIII VIII VIII VIII XI XI XI XI VII XI XI XI III III III III III III III VII VII VII VII VII VII 2007 2008 2009 2010 2011 2012 2013
Fiscal Sector Fiscal Sector 4 4 3 3 2 2 1 1 0 0 -1 -1 -2 -2 -3 -3 -4 -4 -5 -5 2007 2008 2009 2010 2011 2012 2013 2014 Output gap Overall Balance Structural Balance
Public debt (% GDP) Public debt (% GDP) 30 25 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 Foreign debt Domestic debt
Fiscal stance Fiscal stance Bulgaria and EU Bulgaria and EU Average Government debt (2008-2013) Average budget deficit (2008-2013)
Financial Sector Financial Sector Currency board arrangement Established in mid 1997 To be abolished after joining the euro area by (hopefully) 2020 The financial sector is dominated by the banking sector Stock market and non-bank financial institutions remain underdeveloped In general, the financial sector has not been hit hard and remains stable and relatively well capitalized and liquid
Banking sector Banking sector Assets to GDP ratio Assets to GDP ratio 500 120 Bulgaria 450 100 400 New EU members Old EU members 350 80 300 250 60 200 150 40 100 50 20 0 0 2007 2008 2009 2010 2011 2012 2013 2014
Banking sector Banking sector cont. cont. Capital adequacy and Liquidity Performance 20 35 18 2.5 18 16 30 2 16 14 25 14 12 1.5 12 10 20 10 8 1 15 8 6 6 4 10 0.5 4 2 5 2 0 0 2007 2008 2009 2010 2011 2012 2013 2014 0 0 Liquidity ratio Capital adequacy (%, lhs) NPLs (%) ROA (rhs)
Policy Policy Challenges Ahead Challenges Ahead Preserving financial stability and joining the euro area. Ensuring a smooth corporate deleveraging process. Sustaining the adjustment of the external position, while continuing to attract productive foreign capital. Distressed labour market; persistent unemployment; job losses concentrated in the low-skilled segment and skill mismatches.
