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.

Polish GDP Growth
(9/28/2012 - 6/30/2017)

Source: Bloomberg

About the Author:

Michael Cohick joined VanEck in 2011. He serves as a product manager responsible for VanEck Vectors non-taxable fixed income and industry equity exchange-traded funds. Prior to joining VanEck, he worked at ING Investment Management. Mr. Cohick earned an MS from Columbia University and a BA from Goucher College.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.

Investopedia: A Goldilocks economy is an economy that is not so hot that it causes inflation, and not so cold that it causes a recession. There are no exact markers of a Goldilocks economy, but it is characterized by a low unemployment rate, increasing asset prices (stocks, real estate, etc.), low interest rates, brisk but steady GDP growth and low inflation, http://www.investopedia.com/terms/g/goldilockseconomy.asp