In Brief: Budget draft accepted; Corporate tax cut; Promising GUS Data

On Friday the Cabinet voted to accept the 2003 budget, which is based on new data showing that the economy appears to be slowly emerging from its slump. Finance Minister Grzegorz Kolodko is hoping to cut the budget deficit to 4.9% of GDP next year from 5.4% this year while boosting state spending 2.2% in real terms. Analysts remain skeptical (Reuters) ...The government wants to scale down a pledged four point reduction in the corporate income tax next year, opting instead for a one point cut to 27%, The Finance Minister said that this would "save" corporations at least zl. 1 billion next year. (Reuters)... On Friday the Central Statistical Office (GUS) published the latest national economic data which showed that; Economic growth picked up to 0.8% year-on-year in the second quarter from a 0.5% rate in the first three months of the year; That retail sales fell 0.4% in August, after a 6.5% month-on-month rise in July, but were still 5.1% higher than in the same month of 2001; The trade deficit, as calculated on the basis of customs receipts, shrank slightly to $8.34 billion in January-July from $8.53 billion in the same period of last year. Exports rose 6.5% in dollar terms, while imports were up 4.4% (Reuters).