The better half
The Polish Confederation of Private Employers Leviathan (PKPP) Business Index fell again in March, but the organization is confident that a recovery is in the pipeline.
It blames the current slowdown on reduced consumption and the złoty's appreciation, which slowed down exports and decreased foreign net demand.
Although a big difference between the yearly and the quarterly index (58 and 49 respectively) suggests that the current situation is temporary, a fall in the semi-annual index indicates that the growth slump is likely to last longer than a few months. PKPP thinks it will be the second half of the year before Poland sees a resurgence in growth.
"We base our hopes on investments," said Dr Stanisław Kubielas, PKPP's economic expert. He underlined that investment rates rose significantly, from three to seven percent, in 2004. 2004 was also a very successful year for Polish enterprises, which made record net profit last year of zł.60.7 billion in comparison to zł.18 billion in 2003. According to PKPP, the Central Bank's reduction in interest rates is vital to increase investments.
It blames the current slowdown on reduced consumption and the złoty's appreciation, which slowed down exports and decreased foreign net demand.
Although a big difference between the yearly and the quarterly index (58 and 49 respectively) suggests that the current situation is temporary, a fall in the semi-annual index indicates that the growth slump is likely to last longer than a few months. PKPP thinks it will be the second half of the year before Poland sees a resurgence in growth.
"We base our hopes on investments," said Dr Stanisław Kubielas, PKPP's economic expert. He underlined that investment rates rose significantly, from three to seven percent, in 2004. 2004 was also a very successful year for Polish enterprises, which made record net profit last year of zł.60.7 billion in comparison to zł.18 billion in 2003. According to PKPP, the Central Bank's reduction in interest rates is vital to increase investments.
