IMF Staff Country Reports

The Republic of Poland’s 2010 Article IV Consultation shows that Poland is the only European Union country to have escaped a recession in 2009 owing to its limited reliance on exports and well-capitalized and profitable banking system. Like its regional peers, it experienced spillovers from the crisis through both real and financial channels, in particular the latter, as an abrupt slowdown in capital inflows caused a credit crunch and a sharp decline in investment. The banking sector is well buffered, but risks related to foreign-exchange lending should be curbed.