Poland’s first quarter results indicate continued strong resistance to the current financial turmoil that’s raging on the European markets lately. The situation, however, is expected to evolve in the near-term, and Poland is likely to lose strength. Poland’s GDP in the first quarter of the year rose more slowly than expected (just 3.5 percent) fueled mainly by the domestic demand, with its exports dropping significantly over the period, according to the Polish Statistics Institute. Along with EU demand, Poland’s transaction volume also dropped, mostly because many of the projects launched for EURO 2012 have already been completed. As a result, the outlook remains pessimistic for the coming years.
The European Commision has reportedly estimated Poland’s economy would grow by just 3 percent next year, at best. “GDP data from the first quarter of 2012 proves what we had known for a long time,” says William Jackson, a specialist on emerging markets. “Poland is extremely resistant to Eurozone crisis, but it’s not indestructible. It is certain that as the EU’s problems deepen, the small investment boom that’s now ending will result in slower economic growth,” Jackson predicts.
