Despite the weakening of foreign currencies to the zloty, foreign trade turnover was much higher than projected, both on the imports and exports side.

In mid-April GUS and NBP released data on foreign trade in January and February 2008 and the balance of payments in February 2008. Receipts from exports were relatively high while payments for imports were even higher.

Central Statistical Office (GUS): In January-February 2008 foreign trade turnover was higher than in January-February 2007, with the increase in exports larger than in imports. Turnover rose in trade with all groups of countries, with a higher increase recorded in trade with developing countries and Central and Eastern European countries and a lower increase in trade with developed countries, including the European Union. As had been the case last year, Poland recorded a surplus in its trade with developed countries (including the EU) and deficits in its trade with the remaining groups of countries. The share of imports of investment and consumer goods went up and the share of imports of intermediate goods declined. The share of developed countries in Poland’s trade turnover declined compared to January-February 2007 while the shares of Central and Eastern European countries and developing countries rose. The value of exports to the European Union went up by 15.5% to EUR14.4 billion while the value of imports from the EU went up by 13% to EUR13.1 billion. The surplus was EUR1.3 billion compared to EUR0.9 billion last year. Exports to European Union countries accounted for 78.7% of total exports, imports to the EU accounted for 62.0% of total imports, against respectively 81.3% and 66.2% last year.

Poland’s main trading partners

Central Statistical Office (GUS): Compared to January-February 2007, the value of Polish exports to Germany, Poland’s main trading partner, rose by 4.5% to EUR4.6 billion; the value of imports rose by 7.2% to EUR5.0 billion. Poland recorded a deficit of EUR-0.3 billion, compared to a deficit of EUR-0.2 billion a year before. Germany’s share in Polish exports decreased from 27.2% to 25.3%; in imports it decreased from 25.0% to 23.6%. (...) The list of countries with the largest share in Polish exports after Germany included France (6.4%), Italy (6.3%), the United Kingdom (6.0%), the Czech Republic (5.4%), Russia (5.0%), the Netherlands (3.9), Ukraine (3.6%), Sweden (3.3%) and Spain (3.1). The following countries had the largest share in Polish imports after Germany: Russia (10.6%), China (7.9%), Italy (6.3%), France (5.4%), the Czech Republic (3.3%), the Netherlands (3.3%), the United Kingdom (2.8%), South Korea (2.7%) and Spain (2.3%). (...) Compared to January-February 2007, the value of exports to Central and Eastern European countries rose by 23.3% to EUR1.8 billion; the value of imports rose by 31.4% to EUR2.6 billion. Poland recorded a deficit of EUR-0.8 billion, compared to a deficit of EUR-0.5 billion a year before. Exports to Central and Eastern European countries accounted for 9.7% of total exports while imports to these countries accounted for 12.3% of total imports, compared to respectively 8.9% and 10.7% in January-February 2007. (...) In the year to February 2008 Russia was the 6th largest importer of Polish goods and the 2nd largest exporter to the Polish market. Exports to Russia rose by 32.4% to EUR0.9 billion while imports from Russia rose by 35.9% to EUR2.2 billion. The trade deficit was EUR-1.3 billion versus EUR-0.9 billion. Russia’s share in Poland’s total exports increased from 4.2% in January-February last year to 5.0%; its share in Poland’s total imports increased from 8.9% to 10.6%. (“Information on the Country’s Socio-Economic Situation, April 21, 2008,” GUS; http://www.stat.gov.pl)

Exports and imports of high-tech products are on the rise.

GUS: The share of high-tech products in total exports and imports amounted respectively to 7.2% and 15.7% versus 5.4% and 14.7% a year before. In January-February, the value of outward processing accounted for 6.8% of exports while the value of inward processing accounted for 4.3% of imports versus 7.7% and 4.6% a year before. In exports, the share of outward processing was the highest in the following sections: various industrial products - 12.8% (of which clothes accounted for 49.7% and furniture 6.0%), raw materials excluding fuels – 10.0% (of which leather and raw fur skins accounted for 70.4% and materials of animal and plant origin – bone, coral, seeds, flowers – accounted for 17.6%), machines, devices and transport equipment – 7.5% (of which rail vehicles, ships and airplanes accounted for 51.9%, machines and equipment for general industrial applications 12.6%, and energy-generation machines and equipment 11.7%). (“Information on the Country’s Socio-Economic Situation, GUS, April 21, 2008”)

The share of investment goods increased in exports and imports.

GUS: As regards the breakdown of exports by economic category, the share of exports of investment goods increased from 9.8% to 10.8%, the share of consumer goods exports increased from 34% to 34.4% while the share of exports of intermediate goods declined from 56.2% to 54.8% compared to January-February last year. An increase in goods exports was recorded in all the economic categories, with exports of investment goods rising by 23.6%, consumer goods by 13.7% and intermediate goods by 9.5%. Investment goods other than means of transport accounted for 62.7% of total investment goods exports, which represented a drop by 2.4 percentage points compared with the same period of last year. They included data processing machines and units, monitors and metal containers for storage or transport. An important item in the consumer goods category was consumer durables, mainly television receivers and wooden furniture (these exports’ share was 27.7%, up by 0.2 percentage points compared with a year before), and passenger cars (18.5%, up by 0.9 percentage points compared with a year before). Processed industrial supplies had the largest share in intermediate goods exports – 50.3% compared with 51.5% a year before. Unprocessed industrial supplies accounted for 3%. Parts and accessories for transport equipment accounted for a large share of intermediate goods exports - 23.9%, a rise by 0.1 percentage points year on year. These were mainly parts and accessories for motor vehicles and internal combustion engines. (“Information on the Country’s Socio-Economic Situation, GUS, April 21, 2008”)

Exports and imports in January-February 2007 in current prices, EUR, according to GUS

According to NBP data published in April, in February 2008 the balance on the current account was negative and the deficit was deeper than in the same period of last year. At the end of February the deficit stood at EUR-1.3 billion versus EUR-0.7 billion a year before. The deficit increased mainly due to the deterioration of the negative merchandise trade balance by EUR0.4 billion. In February the merchandise trade balance was negative at EUR-0.9 billion, compared with EUR-0.5 billion in February 2007. Receipts from merchandise exports reached EUR10.1 billion, a rise by 28.7% compared to February 2007. Payments for imports amounted to EUR11 billion, up by 32.3%. In February the balance of services was positive at EUR90 million, compared to EUR183 million a year before. Receipts from service exports reached EUR1.7 billion, up by 26.6% compared with February 2007. Payments for service imports reached EUR1.6 billion, up by 38.5% compared with February 2007. The income balance was negative at EUR-0.8 billion against EUR-0.7 billion a year before, with receipts at EUR0.6 billion, up by 27.5% compared with February 2007, and expenditure at EUR1.4 billion, up by 17.4% compared to a year before. The balance of current transfers was EUR0.3 billion against EUR0.3 billion a year before, with growth in receipts being higher than in expenditure. Receipts reached EUR1.0 billion, down by 4.5% compared with the same period of last year, while expenditure was EUR0.7 billion, down by 7.9%.