April's current account deficit is a sign of things to come

Economists estimate that the current account deficit amounts to 2.4% GDP, while the Finance Ministry expects that the deficit will increase to 4.7% GDP next year. The high deficit is mainly the result of rising imports which grew by as much as 25% yoy in April, while exports recorded a lower increase amounting to 15.7%. However, experts believe that deficit is not cause for concern. "The higher deficit will affect the złoty, but not to such an extent as to cause it to significantly weaken," stated Mateusz Szczurek, the chief economist with ING Bank Śląski. Analysts emphasize that the deficit will be financed with the influx of foreign direct investments and EU funds. In April foreign companies invested EUR 555 million in Poland, while EU transfers amounted to EUR 748 million. (Parkiet June 16-17, pp. 1, 11; Rzeczpospolita, June 16-17, p. B2) E.B.