Export growth lowers current account deficit

Professor Anna Zielinska Glebocka (L) and Marek Belka (P) at the Monetary Policy Council conference. Photo: PAP/Rafał Guz

Current account, one of two major measures of country's foreign trade, shows a decrease in deficit in comparison to the same period last year, the NBP said on Tuesday.

Economists predicted the deficit at this time of the year to reach 1.335 million euro. The actual number came at 1.027 million, a slight decrease compared to June's 1.240 million. It is also lower than in July 2011, when the deficit equalled 1.865 million.

The balance of trade, main component for estimating the current account, shows increases in both Polish export and import to Poland, however export grew more dynamically hence narrowing the gap. Since July of 2011 export grew by 12.7%, and import by 4.2% - which amounts to increase of 1.386 million and 511 million, respectively.

According to the statement published by the NBP, the dynamic change is partially due to the fact that the value of export was relatively low in July of 2011.

All types of goods noted increased export value, with sales of investment goods growing most dynamically (by 25.3%). The numbers provide slight consolation to the concerns regarding slowing down of Polish economy.

Earlier this month Monetary Policy Council decided to keep interest rates unchanged at 4.75% in annual terms. President of the NBP, Marek Belka suggested the rates might be lowered in October, should the incoming data show further weakening of Polish economy. (be)