Economic slowdown or recession?

The economic picture for Poland doesn't look favorable in 2009. Investment will fall to 8.3 percent, consumption will drop, unemployment will rise, the złoty will continue to weaken against major currencies and banks will be cautious granting credits to investors, according to a report published by BNP Paribas.

Michał Dybuła, co-author of a report on 2009 global economic outlook, said that GDP growth will be 0.4 percent next year and 1.4 percent in 2010, while 2008 GDP will be 4.8 percent. This negative outlook for Poland, according to the report, is due to recession which is going to touch Poland's main trading partners. "Quarterly, next year, Poland can enter recession," Dybuła told journalists.

The report has signaled that Bulgaria's headed for two-year recession, where the economy will contract 1.2 percent in 2009 and 0.3 percent in 2010. Romania is also going to feel the crunch where GDP is set to drop 0.6 percent next year.

Source: Puls Biznesu