A recent report by the Moody's ratings agency sees Poland's GDP growth at 1.9 percent in 2013. The agency said that low domestic demand and the ongoing crisis in the euro zone will bring down Polish growth.
Poland's economy is seen as stronger that that of other countries in the region. Hungary's GDP is seen falling by 1.2 percent and the Czech Republic's is expected to grow by a mere 0.3 percent.
Moody's explained that the economies of the three countries were export-driven. As about 75 percent of the exports go to European countries, they are unlikely to drive GDP growth in the future, the agency said.
The other problem that these countries face is declining investment volumes. In Hungary investment fell from 22 percent of GDP to 18 percent y/y. In Czech Republic it fell by 3 percentage points to 25 percent. In Poland its remained on a similar level to the previous year overall, but in Q4 of 2012 it dropped significantly and Moody's analysts say this trend could continue throughout 2013.
From Warsaw Business Journal
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