Outlook for exports to the EU gloomy despite improved trade balance

Poland's exporters have little reason to smile, as the number of European U nion (EU) orders for Polish products continues to fall. Even though in the first six months of the year Poland managed to reduce its negative trade ba lance with the EU, analysts are predicting that the situation will get worse in the second half of the year. In total, Poland sold goods worth euro 13.2 billion to the 15 EU member countries in the January to June period, a 12.1% increase that improved the country's trade balance to minus euro 4 billion from minus euro 4.7 billion in the same period a year before. The main reas on for the gloomy outlook is the economic slowdown in the EU countries, a s lump that has worsened in the wake of the September 11 terrorist attack in the US, which shook the worldwide economy. For their part, Polish businessm en claim that the high interest rates and strong zloty are hampering their efforts to sell abroad. The markets are hoping that the new government will introduce relief measures to ease the situation. In the meantime, analysts are pointing out that as exports to the EU decline, so increasingly exporte rs are turning eastward toward Russia, Poland's biggest alternative market. (Prawo i Gospodarka, pp. 1, 2) J.K.