Favourable Economic Prognosis for Krakow

Poland's economic results in 2006 were the best in the last 17 years. The inflation level was one of the lowest in Europe, foreign companies invested over USD 10 billion in Poland, and the competitiveness of Polish enterprises increased. The situation on the labour market improved, with unemployment falling by 2.5 percentage points. The Warsaw Stock Exchange also noted record investor activity in 2006.

In the face of such good results in 2006, the question arises how the economy is going to develop in 2007.

According to experts from the Polish Academy of Sciences, economic growth won't slow down at least through the first half of 2008.
According to Minister of Finance Zyta Gilowska, "The Polish economy accelerated in the third quarter of 2006 and it is now moving at a rapid tempo."

The economy and enterprises have seen economic growth mainly thanks to the privatization process and integration with the European Union. One consequence of integration is the economy's increasing independence from politics. That is why, according to the analysis of experts from the Polish Confederation of Private Employers (PKPP Lewiatan), the growth trend which started in 2006 should continue in 2007. GDP may grow this year by 4.8%. It is hard to predict tendencies for years further into the future.

According to Minister of Labour and Social Policy Anna Kalata, the unemployment level at the end of 2007 may fall to 13.6%.
The upcoming years should bring an improvement in the state of Polish roads and railways, as the government plans to spend increased EU funds on infrastructure development and motorway construction. According to economists, further reforms are the key issue for maintaining economic growth, along with reducing labour costs, making use of EU funds, and investing in new technologies.

This has very positive implications for property value growth into the future.

Source: Polish Information and Foreign Investment Agency. Jan 2007