The ratings on the Republic of Poland are supported by: A good external liquidity position. Gross external borrowing requirements (current account deficit plus long- and short-term debt payments) are projected at an annual average of about 106% of foreign exchange reserves in 2004-2006, slightly above the 98% average in 2000-2003. A competitive, resilient, and increasingly diversified export sector. Poland has posted a solid export performance despite weak external demand. Higher value-added products have gradually expanded their share of total exports, as earlier foreign direct investment (FDI) inflows into export-oriented sectors are paying off. Polish exports are well positioned to reap the benefits when the international economy recovers. Competitiveness has improved over the past two years, due to low wage increases,
