Editor's note: Investments-that's what we are talking about!
It appears that small and medium businesses are making the economy grow despite all that political mess. Regardless of growing interest rates and a stronger złoty, profits are increasing fabulously.
According to GUS, which has just finished counting business profits for the first three quarters of the year, Polish companies have earned zł.46.5 billion so far in 2004-three times more than the year before. This data brings a lot of optimism and hope because it clearly demonstrates that Polish businesses have not been in such good shape for years. The percentage of profitable companies has increased quite significantly. Currently 73 percent of businesses made a profit-last year it was almost 10 percent less. Among Polish companies, exporters are the ones with the healthiest performance. In spite of the worries that we were having in regard to Poland's EU accession, 80 percent of exporters are making profits. Although the złoty keeps getting stronger, new exporting companies are forming while the profits keep growing.
It all sounds great, but there is one problem. While the businesses' bank accounts are getting fuller, not many investments can be spotted. During the first half of the year investments increased by only 3.5 percent. Currently Polish companies in total keep zł.76 billion in their bank accounts but they simply will not invest it. Why? Evidently they still do not believe that the economy is growing-and will continue to do so. In addition, instead of making life easier, Polish politicians appear to have become experts in making life difficult for businesspeople. Dear politicians-leave the businessmen and businesswomen alone. Many of them claim that they don't want government's help. They just want the government to leave them alone.
The President's economic advisor prof. Witold Orłowski believes that if companies invested the money earned in the first three quarters of the year, our economy could maintain 6 percent growth for the next few years. To jumpstart investment, Polish business needs to become more optimistic and more enthusiastic.
Eliza Durka
Editor-in-Chief
According to GUS, which has just finished counting business profits for the first three quarters of the year, Polish companies have earned zł.46.5 billion so far in 2004-three times more than the year before. This data brings a lot of optimism and hope because it clearly demonstrates that Polish businesses have not been in such good shape for years. The percentage of profitable companies has increased quite significantly. Currently 73 percent of businesses made a profit-last year it was almost 10 percent less. Among Polish companies, exporters are the ones with the healthiest performance. In spite of the worries that we were having in regard to Poland's EU accession, 80 percent of exporters are making profits. Although the złoty keeps getting stronger, new exporting companies are forming while the profits keep growing.
It all sounds great, but there is one problem. While the businesses' bank accounts are getting fuller, not many investments can be spotted. During the first half of the year investments increased by only 3.5 percent. Currently Polish companies in total keep zł.76 billion in their bank accounts but they simply will not invest it. Why? Evidently they still do not believe that the economy is growing-and will continue to do so. In addition, instead of making life easier, Polish politicians appear to have become experts in making life difficult for businesspeople. Dear politicians-leave the businessmen and businesswomen alone. Many of them claim that they don't want government's help. They just want the government to leave them alone.
The President's economic advisor prof. Witold Orłowski believes that if companies invested the money earned in the first three quarters of the year, our economy could maintain 6 percent growth for the next few years. To jumpstart investment, Polish business needs to become more optimistic and more enthusiastic.
Eliza Durka
Editor-in-Chief
