Current account gap rises in Oct., remains within forecast range for year' s end

According to the National Bank of Poland (NBP), the current account deficit in October reached $1.05 billion, or 7.3% of GDP. The figure represents a widening of the deficit by $400 million relative to the preceding month. According to most analysts, however, the shortfall was in line with expectations, considering in October Poland paid another part of its foreign debt, including $186 million in accrued interest on Paris Club debts and $155 million for Brady bonds. Since the beginning of the year, the gap has amounted to $8.938 billion, giving reason for optimism that the predicted current account deficit will not exceed 7% of GDP by the end of the year. The NBP also announced that revenues from exports amounted to $2.59 billion in October, or $166 million more than in September. Imports however also rose to $3.59 billion, or $194 million higher that a month earlier. Foreign direct investment grew substantially to $4.565 billion, while revenues from unclassified sources also increased 15.5%. (Prawo i Gospodarka, p.20)