Monetary Policy Council member optimistic about current account deficit

In the opinion of Monetary Policy Council (RPP) member Boguslaw Grabowski Poland's current account deficit should fall below 7% of gross domestic product (GDP) from about 8% at present. He said it can occur due to the favorable external situation and this will improve trade later this year. The current account deficit jumped to 7.4% of GDP in 1999 after the crisis in Russia, which slowed Polish exports and due to the boost of domestic demand increased imports. Previously National Bank of Poland (NBP) officials said the current account gap is likely to stay between 7-8% later this year and over the next year. The huge current account deficit is a key threat to Polish economic stability and its increase to 8% in March fuelled market talk of a pending currency crisis. (Reuters) M.M.