25.10.2017 | Estimated 2 minutes reading time | Print this article

Poland – Secret Economic Wonderland in the EU?

Experts agree: Poland will be once again one of the most dynamic economies in Europe. The National Bank of Poland, UK-based Barclays Bank and the European Commission predicted a GDP growth that will significantly exceed 3 percent for 2017. The Polish economy grew at around 4 percent in the first two quarters of the year and therefore surpassed the forecast of GDP growth in the first half of 2017. For comparison, experts expect a GDP growth of 1.8 percent for the European Union in the current year.

Decreasing unemployment, increasing wages and new social benefits support the development by boosting private consumption in Poland. Poland’s success story was recently also confirmed by the World Bank: “The country moved from middle to high-income status in less than 15 years”. Experts praise the innovation location as well as the economic growth in Poland: Next to low labour costs, Poland offers high educational standards as well as high quality of suppliers what makes the country a secret economic wonderland in the EU.

Recently, global management consultancy Bain & Company rated Polish banks stable in regards to profitability and efficiency as well as assets and liability and therefore ranked Poland in the upper mid-range compared to other European countries. Furthermore, the big three credit rating agencies set Poland’s credit rating at ‘A-’. A further advantage for savers is the Polish deposit guarantee fund that already covers 1.0 percent of all deposits held in Polish banks. The deposit guarantee fund therefore already fulfils the requirement that all reserves held in each European deposit guarantee fund must equal at least 0.8% of all deposits covered by 2024.

Due to the introduction of the EU-wide harmonized regulation on deposit guarantee schemes, your savings are protected up to an equivalent of €100,000 per bank and customer in the unlikely event of a situation requiring a compensation. The extent of coverage was selected in such a way that it is sufficient for a vast majority of scenarios while simultaneously reducing the outflow of liquidity from the financial system for an event that occurs extremely rarely.

Find out more about the protection of your funds.