Poland’s balance of payments in May 2024

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NBP data: In May 2024, the current account of the balance of payments posted surpluses in the services account (PLN 13.5bn) and deficits in the trade in goods account (PLN 2.6bn), the primary income account (PLN 9.0bn) and the secondary income account (PLN 2.2bn).

Preliminary data on Poland’s balance of payments in May 2024, released on 15 July 2024, show a deficit of PLN 0.3bn on the country’s current account. In the corresponding month of 2023, the balance was also negative and stood at PLN 1.2bn.

May 2024 saw a continued downward trend in goods trade. In May 2024, the value of goods exports amounted to PLN 112.9bn, representing a 12.8% decrease on the corresponding month of 2023. The value of goods imports decreased by 7.9% on the May 2023 figure, reaching PLN 115.6bn.

Compared to the corresponding month of 2023, in May 2024, the value of exports declined in all the six main categories of goods. Exports of means of transport decreased the most on the back of deep declines in the automotive industry. The products the exports of which declined the most included electric batteries, car parts, passenger cars and road tractors. The category of investment goods also posted a significant decline. In contrast, as compared to previous months, the scale of the fall in exports of intermediate goods was smaller.

The fall in imports in the analysed period was below the average in the period January-April 2024. Similarly to exports, the value of imports dropped in all the categories. However, the falls in the categories of fuels and consumer goods were relatively small. This points to a gradual stabilisation of prices in global markets and of demand for imported products. As in previous months, the imports of passenger cars increased the most. The increase in car imports was accompanied by changes in the geographical structure of their suppliers.

Exports of services stood at PLN 34.6bn, representing a decrease of PLN 2.0bn (i.e. 5.5%) on the corresponding month of 2023. Imports of services stood at PLN 21.1bn, having decreased by PLN 0.8bn (i.e. 3.5%) on the May 2023 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 11.2bn. The balance of the primary income account was also influenced by the payment of income on portfolio investment (PLN 2.1bn) and on other investment (PLN 2.0bn).