No celebrations despite lower than expected current account deficit

Poland's current account deficit reached $637 million in March, well below expectations of $730 million, and far below the $820 million recorded in February, but despite this the news was not well-received due to the c ontinued slump in exports. However, for the fifth month in a row, export receipts fell year-on-year and in the first quarter of this year were 7% lower than in the respective period of 2001. According to Bank Handlowy analyst Katarzyna Zajdel-Kurowska, these problems are primarily a result of economic stagnation in Germany, Poland's largest trade partner. However, import figures show that the Polish economy is not doing well either - import receipts fell 10.1% year-on-year in the first quarter of this year. Poland's current account deficit remains at a level of around 4.1% of GDP. (Rzeczpospolita, May 4-5, p. B3) T.J.