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Lewiatan Business Index flat in February


The annual PKPP Lewiatan Business Index stayed put at 34 points in February, the Polish Confederation of Private Employers (PKPP) Lewiatan announced. At the same time, the quarterly index slipped one point to 24.

In its commentary, the Confederation notes that while the annual index remains at its lowest level in 10 years, its slide has stopped; and although the further decrease in the quarterly index means Q1 might prove to be worse than Q4 2012, economic conditions are unlikely to deteriorate any further in the months ahead. On the other hand, no significant improvement is to be expected this year as domestic demand continues to be hampered by rising unemployment, declining real wages, and tight fiscal policy, which if anything might become even more restrictive as the government grapples with a growing budget deficit. Under these circumstances, net exports might not be sufficient to engineer a robust recovery before the end of 2013.

The PKPP Lewiatan Business Index is constructed on the basis of market prognoses prepared by Poland’s leading economists for the current quarter, half year and full year. It is measured on a 100-point scale, where a score of 50 corresponds to an economic growth forecast of around 4% of GDP annually.

Lewiatan Business Index in Poland, February 2012-February 2013

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