NPB report highlights reluctance on the part of investors

According to a market situation report complied by the National Bank of Poland (NBP), a decreasing number of entrepreneurs are willing to invest. Economists, however, are optimistic, as expenditures on machines and equipment have finally started growing. Twenty-six percent of those questioned plan to begin investments in Q3, which is 1.4% less than over the April - June period. The majority of economists, however, expect a growth in expenditures on machines and equipment, following two years of continuous decline. At the end of July, the Market Economy Research Institute (IBnGR) lowered its forecast of investment expenditure growth to 1.9%, instead of the previous 3.2%. The main reasons for this, are the privatization delays and political instability, which have made Poland less attractive for investors. "NBP's report is just summing up the subjective approach of individual entrepreneurs, which do not always reflect decisions taken," said PKO BP economist Piotr Kalisz. Other economists claim that the firms do not immediately begin investing after they see the situation improving, as first they increase their production capacity. (Parkiet, p. 7) M.M.