Poland’s current account balance likely deteriorated in June on seasonal effects

Poland’s current account balance likely deteriorated in June. According to a Societe Generale report, the nation is expected to have recorded a current account deficit of about EUR 393 million in June, as compared with May’s surplus of EUR 495 million. The likely deterioration is mostly because of seasonal effects and lower EU fund transfers. Meanwhile, Poland is expected to have recorded a minor trade surplus of EUR 63 million.

“We estimate that both exports and imports will accelerate due to a monthly increase in manufacturing in June (+7.8% mom)”, noted Societe Generale.

In June, Poland recorded export orders growth of 31.3 percent year-on-year, the eighth straight month of positive growth. During that month, the nation received EUR 337 million in current transfers of EU funds. This indicates towards a primary income deficit of about EUR 1,513 million that is lower than in earlier months.

“We also expect to see a surplus of around EUR 1,018 million on the services account and surplus of EUR 40 million on the secondary income account”, added Societe Generale.