Low inflation bodes well for businesses in Poland

Likely entry into the EU and a background of macro economic improvement are two big positives for investors in Poland. Industrial production advanced 3.2% year on year last October, according to Pawel Szymanski, analyst at Schroder SalomonSmithBarney (SSSB). He says that although the unemployment rate is still around 17.5%, it appears that consumer confidence has turned the corner. Furthermore, he says very moderate wage growth of 1.8% year on year in November, combined with a strong zloty, is keeping inflation subdued, which is raising expectations of further rate cuts in the month...