Petroleum, non-ferrous metals and machinery are key products exported from Bulgaria to Turkey. In light of the troubling political developments in Turkey, ELANA Trading analysts prepared an overview of Bulgaria’s export exposure to Turkey as 2nd biggest export market after Germany.
Export to Turkey amounts to 10% of all exports
In 2015, total exports to Turkey amounted to BGN 4.06bn or 10% of all exports, down 3.3% y/y, according to national statistics. The biggest chunk of that were petroleum products (BGN 830m) and non-ferrous metals (BGN 790m). Different machinery products worth BGN 600m are third largest group exported to the Southeastern neighboring country.
Electricity, oil-seeds, cork and wood, metal scrap, coffee, tea, spices, cereals, plastics and chemicals fill the pipeline of products with an approx. BGN 100m exports threshold. Few listed companies have a major exposure to the Turkish economy. Fertilizer producer Neochim (3BN BU) exports to Turkey while rolled and extruded aluminum products manufacturer Alcomet (6AM BU) is Turkish owned but has a diversified market presence with Germany biggest market.
Exports to Turkey down in May
Still, the country’s impact both economically and politically can be significant for Bulgaria considering the close ties between two countries. As of May 2016, exports to Turkey are down 14.3% y/y to BGN 1.5bn while overall exports are down 3.5% y/y to BGN 17.7bn.