Balance of trade and Kolodko's package could be bad omens for the economy

According to Main Statistical Office (GUS) exports to European Union countries has decreased while import have risen. According to economists, the situation is getting worse. In general, data about foreign trade is positive, as exports have increased more than imports during the first five months of 2002. However, detailed analysis reveals that this year the January to May value of exports was lower than for the same period in 2001. "The exchange rate is important when selling raw materials or low-processed goods. However, the main factor influencing trade with the EU is their level of GDP growth," said Katarzyna Zajdel-Kurowska from Bank Handlowy. It is worth mentioning that most of the data used by GUS was calculated using lower than present interest rates against the euro. In related news, BRE Bank economists think that the anti-crisis plan of Finance Minister Grzegorz Kolodko is likely to increase the public debt by around 3%. (Parkiet, p. 7) M.M.