Poland Economy Surges Ahead
- New Europe Investor
- January 26, 2016
Despite concerns in Poland and beyond about its new government, the economy is expected to record growth of 3.6% for the final quarter of 2015 compared to the previous year.
The figure emerged from the statistical office GUS on Tuesday, with the finance minister in the country predicting a higher number of 3.8%.
The growth rate has exceeded most analysts’ expectations, with investment levels and private consumption levels also performing well last year.
Whilst the statistics are positive, political risk in Poland combined with global uncertainty will be a factor weighing down potential growth rates in 2016. Consumption levels are expected to be strong, with the new government’s child welfare increases having a significant impact.
Political risk in the country revolves around the concern for some anti business taxes on banks and large retailers that have already spooked investors. In addition, the new government has been heavily criticised for political appointments in the media and the constitutional courts.
The WIG20, Warsaw’s primary stock index and the zloty have taken significant hits over the past six months in the run up to the November election, and subsequently after.