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Poland - News and Tourist Information 30/12/2005

In Brief: NBP on inflation; Poor old Poland; Bleak outlook for industry

Yesterday the National Bank revealed that the inflation rate this year will "most likely" exceed the target set by Monetary Policy Council (RPP).

Supply-side factors, including higher food prices after EU accession and rising oil prices had the most immediate impact, said Krzysztof Rybiński from National Bank of Poland in an interview for Parkiet. The RPP has already raised rates by a total of 75 percentage points this year. (Parkiet, p. 8) ... Poles are among the poorest EU citizens. Last year Latvia and Lithuania used to have the lowest Gross Domestic Product per citizen, but this year it has been forecast that Poland will close 2004 with the worst result. (Rzeczpospolita, p. B1) ... In the private industrial sector a slight deterioration has been observed in July. Both production and the demand have fallen, while supplies have piled up. Employment in the sector has also fallen. Unfortunately, the prognosis for the following months is rather pessimistic, and entrepreneurs do not see much chance for improvement. (Rzeczpospolita, p. B2) J.J.

(Source: http://www.wbj.pl/?command=article&id=23526&)

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