Financial and business news from Bulgaria

Which sectors in Bulgaria will suffer most from the coronavirus

The economic effects of the spread of the coronavirus can soon be felt in our country, predicted by the team of Euler Hermes in Bulgaria. Trade transactions with the affected countries are reduced, and the most seriously affected are expected to be the tourism, information technology and electronics sectors, automotive industries, as well as transport, money.bg quoted them as saying.
“Both on the global level and in our country, the effects of the epidemic will affect tourism. Trouble is expected with tech companies because of China's supply chain disruption.

With particular attention we also monitor the transport sector, where the effect of the coronavirus and the complications in the operational work are further aggravated for the business in the context of the changed toll charges and the upcoming introduction of the “Mobility” package, explained Kamelia Popova, Manager of Euler Hermes for Bulgaria.

The advice to Bulgarian companies is to be careful when concluding deals with partners in China, Taiwan, South Korea and Italy. Due to the complicated situation and increased global tensions since the beginning of the year, Euler Hermes Bulgaria reported increased demand for commercial credit insurance.

By Euler Hermes forecast $320 billion in losses for a quarter to bear global trade because of the coronavirus. The decline is 2.5% compared to the same period last year.

161 billion dollars less will be realised by exports of goods, the main part of which is due to the decrease in demand in China, and it is noticeable already in Italy and in other European countries. $125 billion will be the hit for tourism and for transport - $33 billion

Analysts say that the losses for only quarter will be commensurate with the effects of the cold trade war between the United States and China throughout 2019. While Euler Hermes expect the first signs of normalization in April, the forecast for the second quarter of 2020 also remains negative - a 1% drop compared to the same period last year. The recovery is expected to be gradual and take time.

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