Poland’s balance of payments in June 2023

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NBP data: In June 2023, the current account of the balance of payments posted surpluses in the services account (PLN 18.5bn) and the trade in goods account (PLN 4.6bn), and deficits in the primary income account (PLN 11.5bn) and the secondary income account (PLN 0.7bn).

Preliminary data on Poland’s balance of payments in June 2023, released by NBP on 14 August 2023, show a surplus of PLN 10.8bn on the country’s current account. In the corresponding month of 2022, the balance on the current account was negative and amounted to PLN 1.3bn.

June 2023 was another month which saw a positive balance of trade in goods. According to preliminary estimates, in June 2023 the surplus of exports over imports was at PLN 4.6bn, compared to a deficit of PLN 5.1bn in June 2022. At the same time a further decline in the value of trade was observed. This was to a large extent a result of falling indices of transaction prices expressed in zloty. This is driven by a gradual drop in global trade prices and concurrent appreciation of the nominal exchange rate of the zloty. Also, the slowdown in economic activity experienced by Poland’s main trading partners negatively affects the real growth rates of trade.

In June 2023 the value of goods exports amounted to PLN 124.5bn, which represents a decline of PLN 2.9bn (or 2.3%) compared to the corresponding month of 2022. This was the first drop in the value of Polish exports since 2020. The value of goods imports dropped by PLN 12.6bn (or 9.5%) on the June 2022 figure, and reached PLN 119.9bn.

The value of exports fell in three categories – intermediate goods, fuels and consumer goods. The decline in consumer goods exports was primarily driven by falling sales of TV sets, furniture and household appliances.

The value of imports dropped in five out of the six main goods categories. The strongest decline was observed in the value of imports of fuels, intermediate goods and consumer goods.

Exports of services stood at PLN 40.1bn and rose by PLN 1.7bn (or 4.4%) on the corresponding month of 2022. Imports of services amounted to PLN 21.6bn, which represents an increase of PLN 1.5bn (or 7.4%) on the June 2022 figure.

The negative balance of the primary income account was primarily due to direct foreign investors’ income of PLN 10.0bn on their equity investments in Polish entities. The balance of the primary income account was also affected by income payments on portfolio investment (PLN 1.3bn) and on other investment (PLN 2.2bn).