The strong showing by Poland’s economy in the third quarter of this year includes encouraging news for Poland bulls: domestic demand is an increasingly important factor in an economy that has been largely sustained by export growth.
New details on the economy come from the government’s statists agency, which took a closer look at earlier released flash GDP numbers. Those showed the economy expanding by an annual 1.9 per cent in the third quarter, up from 0.8 per cent in the second quarter. Continue reading »
By Jan Krzysztof Bielecki
In a famous joke from the communist era, a listenersends in a question to a Soviet radio station: “Is it true that cars are being given out for free on Moscow’s Red Square?”. “Generally speaking, yes – it’s true”, was the initial response. But then came a more detailed answer: “It’s happening in Leningrad, not Moscow; it’s bicycles, not cars; and they’re being stolen, not given out.”
The same can be said of somearticles published recently about Poland’s plans to reform its pension system. Generally speaking, yes – part of the assets will be transferred to a pay-as-you-go system. But the rest of the picture painted by the authors of those texts is about as true as the great car giveaway in Red Square. Continue reading »
The numbers are not head-turners, but the latest retail sales data out of Poland show the country continuing a steady, if unspectacular, economic revival – which means continued support for current low interest rates.
Retail sales in September grew by an annual 3.9 per cent, below analysts expectations of 4.7 per cent but still enough to show that the economy is rebounding from a sharp slump in the first half of the year. Continue reading »
Poland’s economic recovery is gathering steam, with new industrial production numbers showing that growth in central Europe’s largest country is picking up sharply.
September’s industrial production was accelerated to 6.2 per cent on an annual basis, up from 2.2 per cent in August. Continue reading »
Most people looking at a global economy buffeted by five years of crises and turmoil would be loath to call this a “Golden Age”. But that is just what Poland is experiencing, according to a new World Bank paper.
Marcin Piatkowski, a World Bank economist, makes the fairly convincing argument that central Europe’s largest economy is enjoying its greatest period of stability since the country appeared on the map of European history more than a thousand years ago. Continue reading »
No surprise from the National Bank of Poland’s rate-setting Monetary Policy Council on Wednesday after it decided not to budge from the current record low benchmark of 2.5 per cent.
With signs that the economy hit bottom in the first quarter of this year and has since been slowly recovering, the chances of any action on the part of the MPC were fairly minimal. Continue reading »
Polish premier Donald Tusk recently announced that Poland’s economic slump was over and predicted a return to faster growth, but that message doesn’t seem to have got through to the thousands of angry labour union activists who descended on Warsaw on Wednesday for several days of anti-government protests. Continue reading »
With its back pressed against the fiscal wall by an unexpectedly sharp economic slowdown, Poland’s government on Wednesday took an axe to part of the country’s pension system in a bid to bolster public finances.
Premier Donald Tusk said that part of the country’s obligatory pension system run by private funds would be dramatically revamped, with 120bn zlotys ($37bn) in government bonds held by the 14 funds being transferred to the government pension scheme and cancelled, which will reduce public debt by about 8 percentage points from its current 55 per cent of gross domestic product. Continue reading »
Poland’s economic slump is over – that’s the word from Donald Tusk on Tuesday at an annual economic forum in the Polish mountain resort town of Krynica, announcing the start of an economic rebound that may also bolster the Polish premier’s sagging political fortunes. Continue reading »
Is Poland’s sluggish economy on the road to recovery? There were further signs that it might be on Tuesday, as retail sales in June showed a bigger than expected expansion of 1.8 per cent compared with the same month last year, and unemployment continued to edge down. Continue reading »
Buffeted by a slowing economy, Poland’s government on Tuesday said it would allow its budget deficit to rise sharply and temporarily suspend legal limits on public debt in order not to throttle what little growth remains.
Donald Tusk, the prime minister, said government revenues would be about 24bn zlotys ($7.4bn) lower than predicted in the 2013 budget, saying that “because of the crisis, consumption has fallen. That is why there is a shortfall of taxation revenues in the budget.” Continue reading »
By Nicholas Spiro and Radosław Bodys
In a sign of the breadth and depth of Europe’s economic crisis, Poland, once the continent’s star performer, is going through one of its roughest patches since the fall of communism.
But the country’s underlying strengths shouldn’t be ignored. Continue reading »
Poland’s central bank on Wednesday cut its benchmark interest rate by a quarter point to a record low of 2.5 per cent, in what most analysts feel is the end of the bank’s loosening cycle as the economy is starting to show slight signs of reviving. Continue reading »
Fights between enemies are nothing unusual. It is battles between (former) friends that tend to be the most bitter, as is the case in an ongoing conflict between Jacek Rostowski, Poland’s finance minister, and Leszek Balcerowicz (pictured), a former finance minister, central banker and the architect of Poland’s post-communist economic reforms. Continue reading »
With Poland’s economy slowing rapidly the central bank on Wednesday cut interest rates by a quarter point to a record low of 2.75 per cent in line with market expectations.
It was the latest in a series of reductions that has seen the bank’s benchmark rate come down from 4.75 per cent towards the end of last year. Continue reading »