Current account deficit increases in June but exports continue to rebound

The National Bank of Poland (NBP) said on Thursday the current account deficit stood at $870 million in June surpassing analysts' expectations, though it was still lower than the same period last year. After exceedingly positive data in May when the current account gap was only $401 million, analysts had forecast the deficit at $700 million. However, economists were buoyed by export figures which increased by 14% in June to zl. 2.439 billion, while imports were up by only 1.4 % to zl. 3.473 billion. The difference between import and export dynamics is decreasing. "The June data confirms the current account deficit has entered a downward trend. This is thanks to stronger exports," said Monetary Council member (RPP) Boguslaw Grabowski. Grabowski believes the current account deficit will shrink below 7% of GDP by the end of the year. The increase in exports is due to the good economic situation in the European Union (EU) which is Poland's major trading partner. (Reczpospolita, page B1) P.S.