World Bank: Good perspectives for Poland and Central Europe

The ‘Global Economic Prospects’ report, published in mid-January and discussed at a conference at Poland’s National Bank this week, predicted that Central Europe would expand its output by 2.7% this year.

Theo Thomas, the World Bank’s Lead Economist for Central Europe, commented during the conference that “we hope 2015 will bring growth to all countries in the region.

''Even Croatia, which has been in recession for the past six years, should soon recover from it.”

Thomas noted that Poland itself has favourable domestic demand conditions.

“We can see that consumers are feeling more secure,'' he said.

''We can see the return of investment.

“This is very important as it follows a period of negative consumption and investment growth, which took place around 2013.”

Thomas added that ''the region to which Poland belongs remains one of the fastest developing sub-regions of the EU.”

In comparison Eurozone growth is estimated at just 1.1% this year.

Concerns

However, Artur Radziwiłł, ‎Poland’s Deputy Finance Minister, noted at the conference that the disappointing Eurozone growth and unemployment figures are a cause for concern in Poland.

''Poland is coping much better than average [European countries], Polish economic growth is quite solid,'' he explained.

''We are however dependent on our main trading and investment partners in Europe and the Eurozone.”

Radziwiłł informed the conference that the government is building a ‘fiscal buffer,’ to enable Poland to counter any potential economic shocks caused by economic troubles abroad.

In the report the World Bank lowered its expectations of global economic growth in 2015 to 3%. According to Radziwiłł Poland’s economy will grow by around 3.4% this year, while the World Bank predicts 3.2%. (sl)

Source: Rzeczpospolita