Deutsche Bank: Polish zloty is extremely cheap and undervalued

According to Deutsche Bank's Global FX Research team, led by Alan Ruskin and George Saravelos, the Polish currency is "extremely cheap" and undervalued by some 10 percent. Despite Poland facing the weakest GDP growth (in more than two years) in Q1 2016 - up by 3 percent, Deutsche Bank's economists maintain a favorable outlook for the country's future. Global FX Research team believes the Polish economy can grow at 3.5 percent both in 2016 and 2017. It says the macro outlook for Poland is "robust," pointing to strong PMI data, unemployment near record lows, and rising wages among the reasons for their positive view. Recently, the European Commission estimated that Poland's GDP will grow by 3.7 percent in 2016 and 3.6 percent in 2017, whereas Fitch revised the forecast down to 3.2 percent in 2016. The International Monetary Fund says Poland's GDP growth is projected to reach 3.6 percent in 2016 and accelerate to close to 4 percent in 2017.