Veselin Iliev in an interview for Bloomberg TV Bulgaria
Bulgaria managed to displace some suppliers on international markets and Bulgarian exports - at least for some goods - are competitive. In the year 2022, mechanical engineering is the one worth noting because there is a very good growth in the export of machine parts and finished machines. Bulgaria is also becoming one of the world's leading suppliers of integrated circuit boards, commented Veselin Iliev from the Bulgarian Industrial Association for Bloomberg TV Bulgaria.
Data from an analysis by the Bulgarian Industrial Association show that export growth in 2021 compared to 2020 was 30%, but a large part of this growth was due to an increase in prices, not volumes, Iliev pointed out.
"What we have now is largely due to growth in volumes - especially when it comes to fuels which have come out on top again. Fuels and energy carriers in general were not in a leading position for the last 5-6 years, but now they have come forward again conditionally because of increased exports to Ukraine, where there are about and a little over $800 million in fuel exports, and also to some other countries, where there are 300-400 million dollars of exports each. This is more than Bulgaria usually exports, but this is not the good news for me. The good news would be if we export more goods and services with higher added value. …In 2022, mechanical engineering is what is worth celebrating. There is a very good growth in the export of parts for machines and finished machines," the guest pointed out.
Iliev noted that somehow the crisis with chips, which has affected many global industries, has had a positive impact on us, as our exports of integrated circuits have also grown at a very high rate.
"Bulgaria is becoming one of the world's leading suppliers of integrated circuit boards and our largest export to the USA, Japan and Malaysia is of integrated circuit boards."
As for the conditions in Bulgaria, which are necessary to attract investments in the field of electronics, the guest pointed out that the Bulgarian Industrial Association has repeatedly pointed out some shortcomings of the business climate in the country. The cost of accounting often outweighs the benefit of low corporate tax. Regulatory regimes are such that they require the additional appointment of people to deal with administration, with filling out documents - all this costs money.
"In Bulgaria, the administration does not understand that citizens and companies are clients, that the administration is for this - to provide services to citizens and companies".
Commenting on the export expectations for this year, the guest pointed out that industrial production will grow.
"Demand remains stable and it is worth noting that demand, at least in Europe, of our main counterparties remained stable, regardless of the increased prices of Bulgarian exports in 2021 and 2022.”
