How Poland escaped the recession

Despite eastern Europe being particulary badly hit by the financial crisis, Poland managed to escape it all. How?

Eastern Europe was the region "most blighted by the financial crisis", says Lex in the FT. But one country managed to escape recession last year. Having grown by 5% in 2008, Poland managed to expand by another 1.7% last year. How?

One reason for its resilience is its comparatively lowreliance on exports, which comprise 40% of GDP. A flexible currency also helpedtemper the downturn. In addition, Poland "has a huge internal market"of 38 million people, says Monika Kurtek of Bank BPH. Government spending oninfrastructure and strong consumption bolstered domestic demand. Retail salesjumped by 7.2% year-on-year in December.

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