Kimchi kielbasa

17 April 2009 By Martin Hutchinson

The global recession is hurting, but Poland isn t in desperate straits, thanks to sound government finances and a sharp fall in the currency. A $20bn request to the IMF is largely precautionary. It s the East Asian restructuring model and it seems to be working.

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Poland announced on April 14 that it will ask the IMF for a $20bn Flexible credit line similar to the $40bn line granted to Mexico, to bolster its foreign exchange reserves and fend of currency attacks.

Poland's GDP grew by 4.5% in 2008 and is expected by the Economist survey to grow by 0.9% in 2009 and 2.2% in 2010.

Foreign investment in Poland peaked at E19bn ($25bn) or 5% of GDP in 2007.

Polish exports in JanuaryFebruary 2009 were down 25% yearonyear at E14.3bn while imports were down 28% at E15.9bn. Poland's M3 grew 17.4% from the previous year in February 2009.

The Polish zloty has declined by around 40% against the dollar and 30% against the euro since July 2008.

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