According to the Central Statistical Office (GUS), annual foreign trade figures after five months of 2008 showed a bigger rise in imports than exports, which negatively affected Poland’s trade balance with most partners, especially the developing countries and Central-East Europe. As last year, Poland booked a positive trade balance with developed economies (including EU countries) and a negative balance with other partners.

Poland’s main trade partners

Central Statistical Office (GUS): Poland’s trade with main partner Germany rose 11.2% to EUR11.8 billion in exports and 14.4% to EUR13.2 billion in imports against January-May, 2007. The overall balance is negative at EUR3.2 billion. Germany’s share in overall exports fell from 26.2% to 24.9%, and in imports from 24.4% to 23.6%. (…). After Germany, Poland’s main export partners are Italy, France (both 6.4%), Britain (5.7%),the Czech Republic (5.5%), Russia (5.0%), Holland (3.9%), Ukraine (3.7%), Sweden (3.3%), Hungary (2.9%. The main import partners are Russia (9.9%), China (7.4%), Italy (6.6%), France (5.0%), the Czech Republic (3.6%), Holland (3.3%), Britain (2.8%), Korea (2.4%) and Belgium (2.3%).(…) (Source: Trade and Services Department – Foreign Trade Section report of July 14, 2008, www.stat.gov.pl)

NBP: In May 2008 the current account balance was negative at EUR-1.6 billion as a result of a negative goods trade and income balance (respectively EUR-1.2 billion andEUR- 0.8billion) and a positive balance on current transfers and services (EUR0.4 billion and EUR80 billion). Compared to May 2007, the current account balance was EUR365 million more in the red, this largely the effect of an increasingly negative goods trade balance and a falling positive balance on services. In May 2008, commodity exports were estimated at EUR9.8 billion and imports at EUR11.0 billion. Compared to May 2007, commodity exports rose EUR1.1 billion (12.2%), and imports EUR1.4 billion (14.0%). The negative balance on goods trade came to EUR-1.2 billion against EUR-1.0 billion in May 2007. Receipts from service exports in May 2008 closed at EUR1.9 billion, 14.0% up on May 2007. Expenditures rose 24.2% to EUR1.8 billion. The services balance in this period was positive at EUR80 million thanks to a positive balance on transport services (EUR0.2 billion) and a negative balance on the remaining services (EUR-143 million) and foreign travel (EUR-3 million). The income balance in May 2008 was negative at EUR-0.8 billion (unchanged from May 2007) due to a negative balance on investment incomes (EUR-1.2 million) and a positive employee wage balance (EUR 0.4 million). Income on employee wages came to EUR0.4 billion, EUR22 million (5.2%) up on May 2007. Decisive for the May 2008 negative balance on investment income were revenues paid to foreign direct investors on their involvement in Polish industry (EUR1.0 billion including EUR7 billion in dividends, EUR0.2 billion on reinvested profit and EUR90 million on credit interest. The negative investment balance was also the effect of interest paid to portfolio investors on securities issued by Polish entities (EUR0.2 billion) and interest on credit paid to foreign creditors (EUR0.1 billion). Over the past 12 months (June 2007 to May 2008) the negative current account balance came to EUR-14.3 billion (EUR-8.9 billion in June 2006 – May 2007). This increase in the negative current account balance was mainly the result of a rising goods trade deficit (from EUR-8.0 billion in the previous period to EUR-12.2 billion), an increased negative income balance, (from EU- 8.7 billion to EUR-10.1 billion) and a falling positive balance on current transfers (from EUR6.3 billion to EUR5.3 billion). On the rise in this period was the balance on services (from EUR-1.4 billion to EUR2.7 billion). Overall goods exports in the past 12 months came to EUR114.4 billion, imports to EUR126.6 billion. Compared to the previous period (June 2006 – May 2007) exports rose by EUR16.1 billion (16.4%) and imports by EUR20.3 million (19.1%)(…).
(Source - NBP Statistics Department payment balance report for May 2008, July 15, 2008, http://www.nbp.pl)

Positive transfer balance with EU
NBP: In May 2008 payment balance reports recorded an inflow of EU funds in the amount of EUR384 million, EUR162 million in current transfers and EUR222 million under the capital account. In the same period Poland paid EUR181 million on membership dues and fees into the EU till. As a result the transfer balance with the EU was positive at EUR203 million, despite an EUR19 million negative balance on current transfers”.
(Source - NBP Statistics Department payment balance report for May 2008, July 15, 2008, http://www.nbp.pl)

Positive balance on foreign investment
NBP: The balance on foreign investment in Poland was positive and amounted to EUR1.7 billion. Behind this were mainly net capital revenues on foreign direct and portfolio investment projects in Poland. The balance on foreign direct investment was positive at EUR0.7 million thank to inflowing net earnings (EUR0.4 billion) which injected some capital into domestic direct investment, reinvested earnings (EUR0.2 billion) and the inflow of net funds from credit received from direct investors (EUR82 million). In May 2008 foreign investors put a net EUR0.5 billion in Polish securities (including EUR305 million in stocks and EUR0.2 billion in debt securities), mostly Treasury bonds issued on the domestic market.
(Source - NBP Statistics Department payment balance report for May 2008, July 15, 2008, http://www.nbp.pl)