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 to remain at an annual average of about 90% of foreign exchange reserves in 2004-2006, slightly below the 95% average in 2000-2003. A competitive, resilient, and increasingly diversified export sector. 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. Competitiveness has improved over the past two years, due to low wage increases, the depreciation of the zloty, and the diversification of export markets to overcome subdued demand from the EU, as reflected in continued solid
