Current account gap widens in April as non-classified trade volume drops

The main reason for the deficit increase is the drop in non-classified border and bazaar trade. In April 1998 revenues from non-classified trade were estimated by the National Bank of Poland (NBP) at $578 million, while last April they reached just $232 million. "These revenues used to alleviate the deficit in official trade," says Krzysztof Bledowski, head of Wood Company brokerage. "But since the beginning of the Russian crisis in August 1998 they have been dropping systematically," he added. Bledowski expects the current account deficit to reach 5% of the GDP by the end of 1999, a level considered reasonably safe. NBP president Hanna Gronkiewicz-Waltz announced yesterday that GDP growth slowed to 1.5% in the first quarter of 1999. (Gazeta Wyborcza, page 20, Reuters)