Higher employment, relatively high wage growth and negative inflation support high growth rates of private consumption in Poland during 2016 and going into 2017. Growth remains on track to reach around 3.5% in both 2015 and 2016 and growth momentum is likely to remain rather stable during 2016.
That said, political risks are now materializing and here to stay, with adverse impact likely in the financial markets. Standard and Poor's (S&P) has also downgraded Poland's foreign currency rating one notch to BBB+ from A- and even kept a negative outlook, while citing political and institutional risks.
"The PLN has weakened quite substantially in the first weeks of 2016. We believe the PLN will continue trading with a significantly political risk premium, at least until the details of the CHF-loan conversion law are public, but most likely through the year." said Nordea Bank in its report.


Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data
Drones Spotted Near Zelenskiy’s Flight Path in Ireland Trigger Security Alert
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut
Michael Dell Pledges $6.25 Billion to Boost Children’s Investment Accounts Under Trump Initiative
Trump and Lula Discuss Trade, Sanctions, and Security in “Productive” Phone Call
Cuba Reaffirms Anti-Drug Cooperation as Tensions Rise in the Caribbean
New Orleans Immigration Crackdown Sparks Fear as Federal Arrests Intensify
IMF Deputy Dan Katz Visits China as Key Economic Review Nears
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth
Honduras Election Turmoil Deepens as Nasralla Alleges Fraud in Tight Presidential Race 



