Exports to rise by up to 7%

Part of the bank’s forecast was based on hopes of improved economic growth in Germany during 2015, as the country continues to be the destination for almost a quarter of Polish exports.

The bank also predicted that the exchange rate would remain stable at around PLN 4.21 to the euro, a rate which is seen as favourable to exporters.

Piotr Bielski, an economist at BZ WBK, explained the optimistic export growth predictions by saying “labour costs in Poland are very low, so we can offer good quality products for low prices”.

BZ WBK also pointed out that new markets could be the key to continued Polish export success. The Middle East and Asia in particular were highlighted as regions where Polish exports could see double-digit growth.

Export growth is vital for the health of the economy, as according to some estimates up to three quarters of Poland’s GDP growth this year will be due to increasing exports.

However the BZ WBK experts admitted that an escalation of problems in Russia and Ukraine, such as weakening demand in those countries or more sanctions, could undermine their predictions. (sl/jb)

Source: Rzeczpospolita