With its robust growth rates of around 5% for each of the five quarters up to and including Q3 20181, Poland has proved a boon for investors hunting for above-average returns in emerging markets. But its upgrade from emerging to developed market status in FTSE Russell indices and by Stoxx in September last year may actually have created a potential pitfall.

Poland Quarterly GDP Growth YoY

Source: Federal Reserve Economic Data.

Following the stock market correction in Poland over the first half of 2018, and the lows for that year recorded in October, caution seems warranted. A noticeable economic slowdown in the region2, growing and potentially serious political disagreements with EU members and within the country itself (recently mirrored in the tragedy in Gdansk), as well as the sometimes blurry political agenda3 of Warsaw, may dampen the outlook for pampered investors.

About the Author:

Christian Kastner is a financial writer and analyst. He covers the world of investing since the beginning of the decade and teamed up with some well known figures of Germany's financial universe along the way.

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