Poland’s balance of payments in August 2023

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NBP data: In August 2023, the current account of the balance of payments posted surpluses in the services account (PLN 15.2bn) and the trade in goods account (PLN 2.2bn), and deficits in the primary income account (PLN 16.8bn) and the secondary income account (PLN 1.5bn).

Preliminary data on Poland’s balance of payments in August 2023, released on 13 October 2023, show a deficit of PLN 0.9bn on the country’s current account. In the corresponding month of 2022, the balance on the current account was also negative and stood at PLN 8.8bn.

August 2023 was another month which saw a positive balance of trade in goods. The surplus of exports over imports was PLN 2.2bn, compared to a deficit of PLN 11.7bn in August 2022. The improvement in the balance was mainly due to a sharp decrease in the negative balance of such categories as fuels, intermediate goods and investment goods. At the same time, the surplus of exports over imports declined in the categories of means of transport and food.

August 2023 was the third consecutive month of declining export prices and the fifth consecutive month of declining import prices. According to preliminary estimates, the value of goods exports amounted to PLN 114.6bn, representing a 7.6% decrease on the corresponding month of 2022. The value of goods imports decreased by 17.1% on the August 2022 figure, reaching PLN 112.4bn.

As compared to August 2022, the value of exports dropped in five out of six categories. Decreases in the exports of food and consumer goods, among others, became steeper. The growth in the exports of means of transport was weaker than in previous months.

The value of imports also fell in five out of the six main categories. The decline was the biggest in the imports of fuels, intermediate goods and investment goods. The upward trend in the imports of means of transport continued.
Exports of services stood at PLN 38.2bn, representing an increase of PLN 0.3bn (i.e. 0.8%) on the corresponding month of 2022. Imports of services stood at PLN 23.0bn, having increased by PLN 0.9bn (i.e. 4.0%) on the August 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 14.2bn. The balance of the primary income account was also influenced by the payment of income on portfolio investment (PLN 2.0bn) and on other investment (PLN 1.8bn).