Economy of Poland

The Economy of Poland

The Economy of Poland profile has improved considerably in the global scenario since the 2008-2009 because it was the only country in the European Union to stand robustly during recession (see GDP graph), a very positive picture to a once beleaguered nation. Poland is predicted to improve economically in the medium-term according to data compiled to this study.

In the latest rating report issued by Fitch credit agency in February 2013 the key drivers for the economic growth in Poland are improvements on sovereign finances and resilience to risks in the Eurozone debt crisis. A fall in government deficit since 2011 is also expected to aid economy to a more positive prospect. Furthermore, domestic demand is set to grow after 2013 due to an increase on household consumption.

“The medium-term growth picture remains positive. We expect Poland GDP returning to growth of 1.2% in 2014. Poland is well placed to take advantage of the Eurozone recovery, which Fitch expects will gather pace in 2014. Polish exporters are also making inroads into new more dynamic markets.”, predicted Fitch Analysts on the Sovereigns report.

Short-Run slowdown

Despite having a positive outlook on medium-term period, the analysts forecasted a poor short-term growth for Poland. GDP will contract in 2013, due to poor exports activity. The country trade balance is supported from countries in the Eurozone which are operating on slow growth basis and squeezed demand.

Internal demand and household consumption are expected to have a meek year due to weak labor market which translates into unemployment and shrinking wages.

The Organization for Economic Cooperation and Development (OECD) reports that Poland is one of the hardest working nations in Europe, however the World Bank states that the country modestly achieved the