EU funding absorption on track

Next to Spain Poland is the second largest beneficiary of the EU Cohesion Fund that finances up to 85 % of eligible expenditure of major projects involving the environment and transport infrastructure. Funds granted to Poland as the pre-accession ISPA Fund and Cohesion Fund for 2000-2006 were fully used.

130 projects including 111 investment projects and 17 already were completed.
The Cohesion Fund is a structural instrument financing projects worth over EUR 10 million. Its support helped complete over 4,800 kilometres of sewage disposal networks, 652 km of waterworks, to modernise over 750 km, build or modernise over 655 km of road infrastructure (including 264 km of motorways), 360 bridges, car parks and junctions, modernise over 565 km of railway tracks.
Poland must use the EU funding till December 31, 2010. Poland has already received over EUR 3.3 billion (60% of the funding) till the end of May 2009. Agreements worth EUR 9.4 billion (over 100% of the funding) have already been signed. (JB)

Polish Market

ECONOMIC MONITOR

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• ● In December 2009 and January 2010, as in previous months in the second half of 2009, the Polish economy stood out against other countries in terms of GDP growth. Poland’s economic growth was higher than projected and higher than in other European countries.
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• In 2009 construction output increased by 3.7%.
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• Retail sales increase in most product groups.
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• On the Warsaw Stock Exchange, stock prices were very volatile in January 2010.
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• At the end of December 2009 the registered unemployment rate (claimant count rate) amounted to 11.9% versus 11.4% in November.
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• At the end of January the president signed the 2010 budget bill into law. The bill was adopted by the parliament on December 18.
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• In the fourth quarter of 2009 the Polish economy turned out to be more resistant to the global crisis than had been projected and than the economies of Polish neighbours, something which boosts optimism in forecasts for 2010 and the next years.
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PODCAST

• Storm over homoerotic art show at Warsaw’s National Museum

• Poland’s new president Bronislaw Komorowski: a pragmatic, pro-business, euroenthusiast

• Poland and OECD innovation strategy

• How to make the Polish economy more innovative?

• Flooding hits Poland again: lessons for the future

• Does Poland need IMF Flexible Credit Line extension?

WEEKLY MARKET ANALYSIS

Retail sales up again in June
Retail sales growth in nominal terms accelerated in June to 6.4% y-o-y from 4.3% y-o-y in May. The increase was higher than expected. In real terms, retail sales growth accelerated to 4.5% y-o-y from 2.0% y-o-y. June was a consecutive month with retail sales figures stronger than expected, which indicates that consumption is recovering after it slowed significantly at the beginning of the year. Private consumption is driven by an improvement on the labour market coupled with a rise in disposable incomes. In Q2 2010 retail sales grew by around 3% y-o-y in nominal terms and around 1% y-o-y in real terms. On the basis of retail sales and industrial production data, it can be estimated that the GDP growth rate was close to 3%.

MARKET INFO

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