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No sign of reverse in negative trends in demand for Polish products


In view of the deepening economic crisis in the eurozone and the worsening performance of the economies of Central and Eastern Europe, one should not expect a swift reversal of the current negative trend and an abrupt recovery of demand for Polish products. Although the significant depreciation of the zloty seen in recent months has served as a major support for exports, Polish companies will find it difficult to increase sales to foreign markets going forward. They will probably redirect some of their production to the domestic market, where locally-made goods will price out more expensive imports. Under these circumstances, we predict that in 2009 exports will grow by 2.3% and imports by 1.2%. As a result, Poland’s foreign trade deficit should increase only marginally compared with last year.

Paweł Sionko
Construction Market Analyst, PMR

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