The situation in the Polish economy

As the Western European economy is struggling with the economic slowdown that commonly recognized as recession it is worth looking, how does it effect other part of the world. In this essay, I will look closer at the situation of the Eastern Europe, and than move to the Polish economy a discuss the forecasts for it.

According to Vienna Institute for International Economic Studies (WIIW) Eastern Europe will not experience recession. In then new EU countries the GDP is likely to increase by 2.7% in 2009 and 2.5% in 2010 after modest increase of the following year, which comes out from the report of WIIW, with the exception of Hungary, Lithuania and Latvia.

In Poland the increase in GDP should remain – as predicted by WIIW and former minister of finance – 3.8 percent in 2009 and 4 percent in 2010 similarly to Slovakia. Jacek Socha, argues that the slump has come to the end on the Polish market. In one week the Blue Chip stock market had grown in 16 percent. The model definition says that if there is 20 percent increase we should expect the turning point in the economy.

In my opinion those predicaments are probable, but much depends on the economic situation of the Western countries, as we can see already how the slump in Germany is affecting decrease in demand for Polish goods.