Poland’s widening current account deficit is not an immediate cause for concern but, with the quality of financing apparently deteriorating and foreign inflows seemingly being used to finance consumer spending rather than a pick-up in investment, it could become an increasing cause for concern among investors over the course of 2011-12. This should slow future zloty appreciation, while the desire to limit speculative capital inflows should mean that interest rate hikes are gradual.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services