Financial crises strike in Brazil, Bolivia, Paraguay, Uruguay and... Poland?

The recent financial crisis in Uruguay and the forecasts of similar situations in Paraguay, the difficulties of Brazil, and also the protests in Bolivia and Peru are expected to have economic repercussions for so-called emerging markets. Economists claim that Poland has so-far been partially resistant to infection from global crises. Investors evaluate the risk of investing their money in Poland as being lower as they are certain it will become a member of the European Union in 2004. However, they emphasize that the situation in Brazil is a crucial factor for Poland as the possible financial slump there might also affect the Polish economy. Financial crisis in Brazil could cause a withdrawal of some investors from the Polish market in the short term. Historically, Poland has been vulnerable to crises such as those in Asia and Russia, however now it belongs to different investment portfolios. An increasing number of investors are not from emerging market funds, but those who expect profits in the longer term, like German funds accumulating savings of individuals, or American pension funds and insurance companies. Poland is increasingly perceived no longer as an emerging market economy but as a maturing market, getting closer to the western economies. (Rzeczpospolita, p. B1) P.W.