Poland: Domestic demand-driven rebound

Rebound in 2014-15. Corporate insolvencies forecast to decline. Solid monetary policy and low inflation.

Moderate exchange rate volatility. Banking sector has been resilient but vulnerabilities remain. Fiscal consolidation thanks to a trick.

Current account deficit has narrowed. External debt burden is high. Foreign exchange reserves do not cover all short-term debt (on a remaining maturity basis).

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