Poland: a Goldilocks Economy?

Michael Cohick

October 25, 2017

Poland is currently enjoying GDP growth that is very robust. Despite a recent uptick, headline inflation appears to have stabilized and the labor market remains tight. A number of factors have contributed to the country’s economic health: Domestic demand remains strong – a seasonally adjusted figure of 5.3% year-on-year in the second quarter; the central bank continues to pursue its relaxed monetary policy; and, exports to the Eurozone thrive.

For the time being anyway, Poland’s economy is well balanced with little sign of any over-heating. And, in a welcome surprise and despite pre-election promises, the government has not over-indulged in either social or populist spending.

One still has to wonder though just how the current administration will address effectively the extremely sluggish growth in fixed investments.