Record high balance of payments for Poland: Central Bank

Higher exports, lower imports and healthy EU subsidies led to Poland’s balance of payments budget surging to PLN 12.6 bn (EUR 2.9 bn) in June, according to the National Bank of Poland data.

"As a result of strongly differentiated trends between exports and imports, the balance of trade in goods increased to PLN 11.9 bn (EUR 2.7 bn)," a National Bank of Poland note on Thursday read. “It was by far the highest balance of trade in goods recorded in the balance of payments,” the bank’s analysts commented.

Poland's exports of goods were PLN 5.7 bn (EUR 1.3 bn) higher than last year, despite the lockdown, with foreign demand for items like batteries and engines for electric cars increasing the balance, according to the NBP report. However, the report goes on to say that exports of consumer goods with items like “tobacco products, clothing, furniture and TV sets are increasing the most,” a good sign after the COVID-19 slowdown slump in many of those areas.

Meanwhile, the normally burgeoning services sector noted a drop in exports of PLN 7.1 bn (EUR 1.6 bn) or 30.6 percent in June compared to the previous year. This sector includes businesses such as the haulage industry and business services, both of which are normally high earners of foreign currency for Poland.

Imports also fell in June. Benefitting from cheaper oil prices, Poland paid out 5.3 bn (EUR 1.2 bn) less for imports, though the import of semi-finished goods for industries such as car manufacturing were also responsible for the drop in imports.

EU subsidies, particularly those for the agricultural sector gave Poland a net surplus in its dealings with the EU of PLN 3.3 bn (EUR 750,000).