Poland’s balance of payments in October 2023

NBP data: In October 2023, the current account of the balance of payments posted surpluses in the services account (PLN 13.6bn) and the trade in goods account (PLN 6.0bn), and deficits in the primary income account (PLN 8.7bn) and the secondary income account (PLN 1.7bn).

Preliminary data on Poland’s balance of payments in October 2023, released by NBP on 14 December 2023, show a surplus of PLN 9.2bn on the country’s current account. In the corresponding month of 2022, the balance was also positive and stood at PLN 3.6 billion.

In October 2023, the downward trend in trade in goods continued although the magnitude of the decreases was slightly less than in the previous three months, mainly due to one more working day compared to 2022.

According to preliminary estimates, the value of goods exports in October 2023 amounted to PLN 134.2bn, which means a 4.5% decrease on the corresponding month of 2022. The value of goods imports decreased by 14.0% and amounted to PLN 128.2 billion.

As compared to October 2022, the value of exports fell in five of the six main categories. The value of intermediate goods exports fell the most. The foreign sales of investment goods, food and consumer goods decreased as well. A rise in the value was recorded only in the category of transport equipment.

The deep decline in the value of imports is largely influenced by the ongoing decrease in the prices of energy commodities on international markets, primarily natural gas and coal. In addition to fuels, the value of imported intermediate goods and investment goods was also significantly lower. In contrast, a smaller decline in imports than in previous months occurred in consumer goods and food. Imports of transport equipment remained at a similar level to October 2022.

Exports of services stood at PLN 38.6bn, representing an decrease of PLN 0.7bn (i.e. 1.7%) on the corresponding month of 2022. Imports of services stood at PLN 25.0bn, having increased by PLN 0.7bn (i.e. 3.0%) on the October 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 10.5bn. The balance of the primary income account was also influenced by the payment of income on portfolio investment (PLN 1.1bn) and on other investment (PLN 2.2bn).