Fundamentally sound

Poland has coped with the global financial crisis so far, but a forecast of slower growth makes it all the more important for the country to stick to its euro adoption plans, the World Bank said last week.

According to Thomas Laursen, country manager at the World Bank for Poland and the Baltic states, Poland is not immune to the financial crisis, but it is relatively well positioned. The international crisis is expected to have an impact on GDP in Poland both this year and next.

The World Bank's latest EU10 Regular Economic report indicates that 2008 growth will slow to 5.2 percent, compared to 6.6 percent in 2007. The institution is forecasting GDP growth of 3.8 percent for 2009.

According to the report, Poland is described as having a robust financial system, a relatively sound banking system and an overall external debt which is relatively moderate compared to more vulnerable countries.

Poland plans to adopt the euro in 2012, which the World Bank believes is an important step in the current financial environment. "Poland is really the only country right now in the region that has a firm and, at least as far as possible, a credible plan for adopting the euro," said Laursen.