Warsaw, 31 March 2014 Balance of Payments in Poland for Q4 2013 The quarterly bop has been prepared based on monthly and quarterly information reported by residents involved in transactions with non-residents, on public statistics surveys as well as administrative sources. This version of balance of payments for Q4 2013 is preliminary and may be subject to further revisions. Balance on the current and capital account The balance on the current and capital account was positive and amounted to EUR 1.583 million. In the Q4 2013, current account and capital balance equalled 1.5% of the GDP. Graph 1. Current and capital account, EUR million In Q4 2013, the balance of the current account was negative and amounted to EUR 1.071 million up by EUR 2.297 when compared with the corresponding quarter of 2012. This balance was influenced by: negative balance of income (EUR 3.301 million) 1 / 7
as well as positive balances of services (EUR 1.257 million), current transfers (EUR 822 million), and trade in goods (EUR 151 million). In Q4 2013, current account balance equalled minus 1.0% of the GDP. The change in the current account resulted primarily from an improvement in trade in goods balance by EUR 1.201 million, services by EUR 225 million and decreased income account deficit by EUR 1.051 million. At the same time, the positive balance of current transfers decreased by EUR 180 million. The capital account was positive and amounted to EUR 2.654 million. Balance on trade in goods In Q4 2013, exports was estimated at EUR 40.512 million and imports at EUR 40.361 million. When compared with data for Q4 2012, exports increased faster (by EUR 1.928 million, i.e. by 5.0%) than imports of goods (by EUR 727 million, i.e. by 1.8%) which resulted in positive trade in goods balance standing at EUR 151 million. In Q4 2012 negative trade in goods balance standing at EUR 1.050 million. Balance on international trade in services Credits on services provided by Polish entities to foreign entities amounted to EUR 7.870 million, and debits of services purchased from non-residents - to EUR 6.613 million. When compared with Q4 2012, credits on services were higher by 1.9% and debits decreased by 1.2%. In Q4 2013, the balance on services was positive and amounted to EUR 1.257 million. It was caused by positive balances on: transportation in the amount of EUR 994 million (increase of EUR 226 million compared to Q4 2012), travel, which stood at EUR 539 million (increase of EUR 28 million). Balance on other services was negative and stood at EUR 276 million (decline in balance by EUR 29 million). Balance on income In Q4 2013, income received by non-residents in Poland amounted to EUR 4.860 million and decreased by EUR 1.165 million, i.e. 19.3%, when compared with Q4 2012. The income of Polish entities generated abroad amounted to EUR 1.559 million and was lower by EUR 114 million, i.e. by 6.8%. 2 / 7
The factors that influenced the negative balance on income, which amounted to EUR 3.301 million, were the negative balance on investment income (EUR 3.695 million) and the positive balance on compensation of Poles working abroad (EUR 394 million). The factor that determined the negative balance on investment income in Q4 2013 was foreign direct investors income amounting to EUR 2.724 million. This item comprised: reinvested earnings (EUR 1.117 million), dividends (EUR 978 million), as well as interest due on debt instruments (EUR 629 million). Income of non residents on portfolio investments in Poland (dividends received on equity securities and interest on debt securities issued by Polish entities) also contributed to the balance on income. Non residents income from the above source amounted to EUR 1.277 million and was lower by EUR 92 million, i.e. 6.7%, when compared with Q4 2012. Balance on EU transfers In Q4 2013, inflow of funds from the EU, as reported in bop, amounted to EUR 3.815 million, of which current transfers stood at EUR 1.022 million (primarily within the European Social Fund - EUR 553 million and the European Agriculture Guidance and Guarantee Funds EUR 453 million), and EUR 2.793 million in capital transfers (its major part within the European Regional Development Fund EUR 1.425 million and Cohesion Fund EUR 1.283 million). In the same period, membership premiums paid by Poland to the EU budget amounted to EUR 663 million. As a result of these transactions, the balance on EU transfers was positive and amounted to EUR 3.152 million. Balance on current transfers of other sectors Balance of current transfers of other sectors was positive and amounted to EUR 542 million. Credits on current transfers amounted to EUR 756 million, of which credits against workers remittances stood at EUR 700 million. Foreign investment in Poland In Q4 2013, the balance of foreign investment in Poland was negative and amounted to EUR 5.202 million. This balance was primarily influenced by net capital s outflow of foreign direct and other investment. 3 / 7
Balance of foreign direct investment in Poland was negative and amounted to EUR 3.614 million. This balance was influenced by net outflow of capital against debt instruments (EUR 3.920 million), outflow of equity capital (EUR 811 million) and positive reinvested earnings (EUR 1.117 million). The factor that significantly influenced on this item was outflow of capital that amounted to EUR 1.515 million, related to a liquidation of a special purpose entities. Graph 2. Foreign investment in Poland, EUR million In Q4 2013 positive balance of foreign portfolio investment stood at EUR 547 million. Net inflow of capital invested by non-residents in Polish equity securities amounted to EUR 389 million and for debt securities it stood at EUR 158 million. Balance of non-resident other investment in Poland was negative and amounted to EUR 2.135 million. This balance was determined by decrease in liabilities of the banking sector by EUR 2.185 million (mostly due to deposits withdrawn by nonresidents) and the enterprise sector by EUR 301 million. At the same time, increase in NBP liabilities by EUR 230 million (mostly due to repo transactions), and in liabilities of general government sector, by EUR 121 million, was observed (mostly due to new loans received from international organisations). 4 / 7
Polish investment abroad In Q4 2013, positive balance of investment by residents abroad amounted to EUR 3.102 million, which means investment by Polish entities abroad decreased. Balance of direct investment by Polish entities abroad was positive and amounted to EUR 1.588 million (decrease in assets mostly due to above-mentioned liquidation of an SPE). In the same period, portfolio investment of Polish entities amounted to EUR 113 million (negative balance). Balance on other investment was positive and amounted to EUR 1.627 million. This balance was mostly influenced by the banking sector which decreased its assets vis-à-vis deposits placed in banks abroad by EUR 1.142 million. Official reserve assets In Q4 2013, the NBP s clients transactions (most of them are transfer of funds from Ministry of Finance s foreign currency account held at the NBP to BGK) and NBP own transactions contributed to a decrease in the value of reserve assets whose balance stood at EUR 648 million. Exchange rate differences and valuation adjustments contributed to a further decrease in the value of official reserve assets of EUR 1.353 million. The stock of official reserve assets at the end of December 2013 amounted to EUR 77.144 million. http://www.nbp.pl/statystyka/dwn/rez98_2014.xls 5 / 7
Additional information on the balance of payments Balance of payments data for February 2014 will be released on 11 April 2014. Balance of payments data for Q1 2014 will be released on 30 June 2014. Time series of the quarterly balance of payments beginning with Q1 2000 are available at the NBP website. http://www.nbp.pl/statystyka/bilans_platniczy/bop_kw_2000_2013.xls Time series of the monthly balance of payments beginning with January 2000 are available at the NBP website. http://www.nbp.pl/statystyka/bilans_platniczy/bop_m_2000_2014.xls Analytical tables of the quarterly balance of payments beginning with 2000 are available at the NBP website. http://www.nbp.pl/statystyka/bilans_platniczy/bop_q_eur.xls 6 / 7
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