Poland trade, current account deficits soar above forecast in July

Poland's current account deficit widened to 1.3 bln eur in July, up from 1.18 bln eur a month earlier and above analysts' forecast of 1.115 bln eur, central bank data showed.

The bulk of the shortfall came from the deficit on trade, which totalled 1.28 bln eur, the bank's data showed.

A higher than expected deficit is negative for the zloty as it shows more cash flowing out of the country.

Separately, statistical office data showed the cumulative trade deficit so far for 2007 rose in July to 9.7 bln eur from 6.7 bln eur in the same period a year earlier.

The office said exports rose 12.8 pct to 55.4 bln eur and imports 16.7 pct to 65.1 bln eur.

Poland's current account shortfall, which measures the net outflow of goods, service and interest payments between into the country, has risen this year thanks to sharp rises in imports.

Source: By Patrick Graham ((Thomson Financia), forbes.com