22 November 2017

Rzeczpospolita: “The economy rushes on, leaving companies out of breath”

“The last quarter of the year looks as promising as the previous one, with Polish GDP increasing by 4.7%. year after year over the last five years,” reports Tuesday’s Rzeczpospolita. The article quotes Dariusz Lewandowski, President of ARIA Fund.

In its article Rzeczpospolita informs that all of the economy levers are working perfectly: consumption, investment and exports. In October, construction and assembly output increased by 20.3% year to year.  Industrial production increased by 12.3% and retail sales by 7.1%. “These figures contrast with some of the measures of business condition. According to Euler Hermes, over 250 companies declared insolvency in the third quarter of the year – that’s the highest in five years. There is also a steady increase in payment backlogs,” Rzeczpospolita observes. Among various reasons of such a state of affairs, experts mention changes in the tax regulation system, tensions affiliated with performance of contracts as well as increase in production costs and fierce competition for skilled workforce. Better economic climate enables consumers to select products and services while having a higher budget. “The rise in demand means shifting attention to more expensive products, often of better quality or better advertised. These are largely offered by large corporations and companies at the top of the business hierarchy,” summarizes Dariusz Lewandowski, president of ARIA Fund. Full text in Polish available here: Rzeczpospolita