Poland’s balance of payments in October 2021

NBP data: In October 2021, the current account of the balance of payments posted deficits in the trade in goods account (PLN 3.8bn), the primary income account (PLN 10.5bn) and the secondary income account (PLN 1.5bn), and surpluses in the services account (PLN 7.6bn).

Preliminary data on Poland’s balance of payments in October 2021, released by NBP on 14 December 2021, show a deficit of PLN 8.2bn on the country’s current account. In the corresponding month of 2020, the balance was positive and stood at PLN 7.0bn.

In October 2021, the value of goods exports amounted to PLN 114.8bn, representing an increase of PLN 8.4bn (i.e. 7.9%) as compared with the corresponding month of 2020. October 2021, similarly to September 2021, was characterised by faster growth in imports than in exports of goods. The value of goods imports rose by PLN 21.3bn (i.e. 21.8%) on the October 2020 figure, reaching PLN 118.6bn. The continued fast growth in imports and the resulting deterioration of the balance were mainly driven by a marked growth in prices in the categories comprising fuels – natural gas, crude oil (the average price having risen by more than 80% y/y) and its refining products.

Exports of services stood at PLN 25.9bn, representing an increase of PLN 2.3bn (i.e. 9.5%) on the October 2020 figure. Imports of services stood at PLN 18.3bn,having increased by PLN 3.3bn (i.e. 21.6%) on the October 2020 figure.

The balance of the primary income account was negative at PLN 10.5bn. The negative balance was primarily determined by foreign direct investors’ income on their equity investment in Polish entities, which amounted to PLN 8.4bn. The balance of the primary income account was also influenced by the payment of income on portfolio investment (PLN 0.7bn) and on other investment (PLN 0.5bn).