Booming exports help cut current account deficit to $676 million in July

Poland's current account deficit for July reached only $676 million, some $200 million less than in June due to the highest export levels in almost two years. This means that for the fourth straight month the gap was significantly lower than the respective period last year. The current account deficit for the past 12 months dropped to around 7.5% of GDP, down from 7.8% at the beginning of this year, when many economists feared a currency crisis. Now they expect the trade deficit to fall to 7% of GDP by the end of the year. However, the deficit for the seven months of this year reached $6.3 billion, almost $200 million more than in the same period last year. Poland exported $2.5 billion worth of goods and services in July, the most since December 1998. The news was well received by currency markets, as the dollar lost zl. 0.025 against the zloty, closing at zl. 4.34. (Gazeta Wyborcza, page 22)