Current account deficit at record low while foreign investment stays steady

The monthly current account deficit fell to $296 million in July, the lowest level since 1998. Analysts polled by Reuters had been predicting a July shortfall of some $640 million, but the situation was buoyed by strong export growth. Counted from the beginning of the year, the external deficit fell to $4.679 billion from $6.301 billion in the January-July period of last year. Exports have grown by 12.1% since the start of the year, while import growth has remained low, at 3.0%. Current account figures published by the National Bank of Poland (NBP) also show a steady inflow of foreign direct and portfolio investments. "This could be a sign that investors still have faith in our economy," said Societe Generale analyst Marcin Mroz. He went on, "If this situation does not change in the coming months it will be a very good sign for the state budget." (Gazeta Wyborcza, Sept. 1-2, p. 28; Reuters) T.J.