Poland’s creditworthiness, earned over several years of good governance of its finances allows the National Bank to run a quantitative easing programme worth 10% of GDP, without affecting the stability of the local currency, Rafał Benecki, Chief Economist of ING Bank Śląski, told PolandIN.
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The economist warned however, that although Poland is doing well in its handling of its finances, as evidenced by the stable złoty, bondholders are watching emerging markets very carefully to see how money from COVID-19 stimulus programmes is being spent.
“Poland is looking fine, as we earned high creditworthiness over many years, although this is not given forever,” the ING economist explained.
“If the money is managed well it shouldn’t hit the currency and should help exit from the COVID-19 crisis, he enlarged.
While global markets borrowed heavily to stave off the effects of the previous global financial crisis, and are giving further stimulus to their economies this time around, Poland avoided printing money in 2008-2009, albeit with its currency devalued. In the meantime, a mark of the financial maturity of Poland as a market was the FTSE Russell’s inclusion of 37 Polish companies in its Global Equities Index.
In the first quarter of 2020 the economy grew by 1.9 percent, outperforming the expectations of analysts. Rafał Benecki expects the economy to contract by just short of 4.0 percent in 2020, while the eurozone will contract by 7.0-9.0 percent.