Blog by Michael Clay

Polish Government Approves Draft 2010 Budget

The budget bill which was passed by the cabinet yesterday leaves the budget deficit intact at 52.2 billion zlotys, "large but safe." as called by the Finance Minister Jacek Rostowski.

The government assumes budget receipts in 2010 at 248.87 billion zlotys versus 245.50 billion zlotys in the earlier draft and increases spending to 301.08 billion zlotys from 297.72 billion zlotys.

Budget revenues will be most affected by decrease in VAT receipts, tax deductions for bio-components, increased excise on cigarettes as well as PIT and CIT changes related to use of company cars, the statement on the budget said.

Poland's economy will grow by 2.8% in 2011, 3% in 2012 and 3.4% in 2013, according to the approved budget bill .

I guess the consumer ends up paying the increases in taxation on Cigarettes, Beer, Wines and Alcohol as well as probable increase in Petrol prices.

Poland's Economy Likely to Show Clear Signs of Rebound

Poland's economy is showing mixed signals and likely slowed in Q3, but should be showing clear signs of acceleration in Q4, Monetary Policy Council member Halina Wasilewska-Trenkner said of her economic outlook.

"The real economy is handling things very well and remains active," Wasilewska-Trenkner told PAP in an interview. But with headline inflation holding above the target range, "inflation pressure remains strong in the economy."

The Polish Agency for Enterprise Development (PARP) signed an agreement last Friday with Avio Polska under which the company will be granted EU Funds within the Innovative Economy Operational Programme.

Avio Polska will use the funds to construct a production technology line of a module for an aircraft engine GEnx-2B, the most modern device of the kind in the world.

The new engine is planned to be used in the long distance aircraft family of Boeing 747-8, which is to substitute the so called Jumbo Jet - the biggest passenger aircraft produced by the American Boeing.

The overall value of the project hovers around 100 million zloty. European financial aid should cover 33million zloty.

Current Account Surplus at 459m Euros
Poland recorded a current account surplus of 459 million euros in June, well above the 207 million euro surplus in May, according to central bank figures released Wednesday. The trade gap was 26 million euros. Exports fell 20.8% year on year to 8.314 billion euros. Imports fell 31.5% year on year to 8.340 billion euros. Is this not the the ideal time for British Businesses to export to Poland and for Polish companies to look for more sales in the UK. With current rates of exchange, the opportunity to do business is better than ever.  People - take advantage of this opportunity

Once again it is reported that Retail sales in Poland have increased.

In this current economic climate, that is a fantastic result and clearly once again shows that Poland is NOT in economic crisis.

The high street has always been a great thermometer for testing economic indicators, and Poland in this current credit crunch is still showing that the consumer is hungry to buy and has still got disposable income in the high street.

Overseas exporters should take advantage of this situation so that they can obtain a share in the imports taking place in Poland. One such category is the WINE business which is expected to grow at the rate of 5.5% per annum in volume and 11% per annum in value.

Once again Exports to Poland are on the increase.

As the Zloty gains some more strength, the value of other European currencies allows exports to Poland to be very much more competitive than earlier this year.

Export to Poland is now a major factor for many UK companies continuing to survive the downturn, and gives them an entry to what has been a market they have not really noticed before.

As more UK companies consider Export to Poland,  they begin to realise the real potential of this lucrative market with a population of nearly 40 million.

In addition, more UK companies feel it is worth investigating a way of Export from Poland as goods from this source are competitively priced.