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Summary of the article:
How Poland became the only EU nation to avoid recession
From Fred Pleitgen, CNN, and Catriona Davies
CNN
cnn.com
June 29, 2010
Although its growth slowed from an average of 5 percent per year for almost 20 straight years to only 1.7 percent in 2009, Poland was only one of two European Union countries in 2009 to experience any growth at all (Malta is the other), and is the only country in the EU that avoided the recent global recession. Low private debt, strong domestic demand, and a flexible currency (Poland uses its own currency, the zloty, and not the euro) are being credited with Poland's successful avoidance of the recession.
Poland is, however, struggling with a growing budget deficit and an unemployment rate of 11 percent, and dealing with these two issues have become priorities in the country. Reforms such as these have become victims of politics in the past, and economists believe that the upcoming presidential election will be crucial for any economic reforms.
Economists are optimistic, however, and expect the growth to continue. The economic forecast for 2010 shows growth in Poland increasing to 2 percent.
According to the Application, Poland experienced economic growth in 2009, yet its unemployment rate was 11 percent, which was above the European average. This indicates that its 2009 output was
▸ above actual output.
▸ below actual output.
▸ above potential output.
▸ below potential output.
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