The Polish economy is set to grow by 1.4 percent this year according to the Organization for Economic Co-operation and Development (OECD), which had in June predicted a 0.4-percent contraction for the largest CEE economy.

The economy should expand by 2.5 percent in 2010. The OECD had previously predicted a growth of 0.6 percent next year. In 2011, a 3.1 percent growth is expected.

“Despite the deep OECD-wide recession, the Polish economy continued to grow in 2009,” the organization said in a report.

Other factors affecting the growth include a sound banking sector, an unleveraged private sector, tax cuts and other fiscal measures, along with infrastructure investments linked to European Union transfers and preparations for the UEFA Euro 2012 soccer championship, which Poland is set to co-host with Ukraine.

“Activity is likely to pick up, driven by fixed investment, but will remain well below potential for some time, while the general government deficit is set to grow to unprecedented levels,” the OECD said.

Sources: Dow Jones, Thomson Reuters