Foreign trade negatively affected by strong złoty

The October current account deficit increased from EUR 618 million to EUR 681 million in September. It turned out to be lower than market forecasts, which envisaged a figure over EUR 800 million. However, foreign trade results were worse than expected. The National Bank of Poland published data that shows that the trade deficit grew from EUR 310 million to EUR 921 million, with forecasts speaking of EUR 600 million. This is a result of lower dynamics of exports (8.4%) in relation to rising imports which was in accordance with market expectations (13.9%). "The weaker results of exports were influenced by the strengthening złoty and poor market conditions and demand from buyers in the EU. This year the current account deficit in relation to the GDP will stand at 4.1%," said Bank BPH economist, Maja Goettig. (Puls Biznesu, p. 10)