GDP increase: Market Economy Research -- 5.9%, Economy Ministry -- 7%

According to Market Economy Research Institute, GDP in the first three months of this year increased by 5.9%. The Economy Ministry estimates it may even have been 7%. Nevertheless, both groups agree that economic growth this year will be stimulated from outside Poland. Next year a flourishing world economy and an improved economic situation in Germany and Poland's eastern neighbors is expected to positively influence Polish exports. Also an interest rate hike in euro-denominated countries will weaken the position of the zloty against the euro, thus creating incentives for higher exports. Still, according to Economy Minister Jacek Steinhoff, Poland's trade deficit is likely to widen to $15.8 billion in 2000 from $14.46 billion in 1999. Steinhoff said it will be difficult to overcome dangerous tendencies in the trade deficit and current account, with 4% growth in exports and 6% increase in imports. Yet he added, "These figures may still change and the government will do everything to improve exports." (Prawo i Gospodarka, page 2, Reuters) J.K.