Employment drop

In December 2005 the unemployment rate rose to 17.6 percent, up from 17.3 percent in November, according to the most recent Central Statistical Office (GUS) data.

According to Katarzyna Zajdel-Kurowska, chief economist at Citibank Handlowy, there's no need to worry about the rise: "This is a usual trend in winter as all seasonal jobs are over, especially in the construction sector where workers sign short-term contracts. Luckily, employment in the enterprises sector is still growing and this is very good news."

GUS also revealed that in December retail sales were only 6.3 percent higher than the year before, which is far worse than the 8.9-percent increase forecast by market analysts. Retail sales were disappointing almost across the board, with food purchases the biggest surprise, dropping by 12 percent.