Poland’s balance of payments in April 2023

NBP data: In April 2023, the current account of the balance of payments posted surpluses in the services account (PLN 14.4bn) and the trade in goods account (PLN 1.0bn), and a deficit in the primary income account (PLN 12.4bn) and the secondary income account (PLN 1.2bn).

Preliminary data on Poland’s balance of payments in April 2023, released on 13 June 2023, show a surplus of PLN 1.7bn on the country’s current account. In the corresponding month of 2022, the balance was negative and stood at PLN 13.8bn.

In April 2023, like in the previous three months of 2023, the trade in goods account showed a surplus. According to preliminary estimates, it amounted to PLN 1.0bn compared to a deficit of PLN 13.5bn in April 2022. The observed improvement in the balance occurs amid a decline in nominal export growth and a deepening of the downward trend of imports. The significantly lower growth rate of trade in goods was influenced, on the one hand, by falling prices in international trade, the effect of which increases the appreciation of the zloty. On the other hand, the weakening of real growth, caused by a slowdown in the countries that are Poland’s largest trading partners as well as in the majority of the sectors of Polish industry, also contributes to this. In addition, April 2023 had one working day less than April 2022.

In April 2023, the value of goods exports amounted to PLN 122.2bn, representing an increase of PLN 2.7bn (i.e. 2.2%) as compared with the corresponding month of 2022. The value of goods imports decreased by PLN 11.8bn (i.e. 8.9%) on the April 2022 figure, reaching PLN 121.3bn.

High export growth persisted in the motor industry. In April, lithium-ion batteries, delivery vehicles, car parts, passenger cars and tractor units recorded the fastest growth in sales.

The value of imports fell in five of the six main goods categories. The value of fuel imports fell the most, largely influenced by the lower prices of energy commodities. In April 2023, prices of imported crude oil decreased by 16.3% y/y, while market prices of gas were 67% lower than the previous year.

Exports of services stood at PLN 35.9bn, representing an increase of PLN 2.4bn (i.e. 7.1%) on the corresponding month of 2022. Imports of services stood at PLN 21.5bn,having increased by PLN 2.1bn (i.e. 10.9%) on the April 2022 figure.

The negative balance of the primary income was primarily determined by foreign direct investors’ income on their equity investment in Polish entities, which amounted to PLN 12.0bn. The balance of the primary income account was also influenced by the payment of income on portfolio investment (PLN 0.9bn) and on other investment (PLN 1.8bn).