Austrade media release 11 November 2009
It’s an unusual economic pairing, but Australia and Poland will be the only OECD economies to record positive growth in 2009 says Austrade’s Chief Economist, Tim Harcourt, speaking on Poland’s National Day (Wednesday 11th November).
“Poland has much to celebrate on its National Day and it looks like Australia should join in the party because we’re both doing well under challenging economic circumstances,” said Mr Harcourt.
“Poland is the only county in Europe to record positive growth this year and is expected to grow by 1 per cent in 2009 and 2.2 per cent in 2010. Australia is predicted to record a modest growth of 0.7 per cent in 2009 and 2.0 per cent in 2010.
“Australia and Poland both enacted fiscal stimulus before the crisis came into effect and now enjoy low inflation, modest growth, and stable credit ratings.
“Although the Polish economy has limited reliance on exports, it has maintained a flexible exchange rate, and successfully contained external and internal imbalances. Asset prices have stabilised and the zloty has appreciated.
Like Australia, the Polish banking system remains well buffered and the authorities remain committed to preserving medium-term fiscal sustainability and a credible monetary policy framework underpinned by inflation targeting and a flexible exchange rate.”
According to Austrade’s Senior Trade Commissioner for Central South East Europe, Warsaw-based Paul Sanda Australia’s direct merchandise exports to Poland in 2008 were around A$40 million, while imports from Poland were worth A$374 million.
Australia’s major export items to Poland in 2008 were coking coal (around A$10.5 million) and medical/pharmaceutical products (around A$5.3 million).
In 2008, Australia’s major imports from Poland included vehicles (A$54.5 million), furniture (A$38.9 million), automotive parts (A$34.8 million) and household items (A$33 million), but this does not tell the whole story,” said Mr Sanda.
“Australian companies are actively involved in business as diverse as barramundi farming, software outsourcing, mining, energy, property development and specialised products for the automotive aftermarket sector. Recognition of the quality of Australian wine is growing and Poland represents a substantial market for future growth.”
The number of major Australian investors in Poland has risen from just two in 2005 to more than a dozen in 2008.
“The current downturn doesn’t seem to have impacted on interest in the Polish market; Australian companies are currently pursuing opportunities in the mining services, food processing, franchising traffic management, intelligent transport systems, engineering, construction and ICT sectors.
“Synergies between Australia and Poland in the coal sector mean opportunities for cooperation in new technologies and services as well as clean coal and carbon capture initiatives. Austrade will this week coordinate the first Australian led seminar in Poland on carbon capture & storage technologies in conjunction with the Global Carbon Capture & Storage Institute (GCCSI) an Australian initiative to enhance knowledge of advances in this technology.
Australian commitment to the market is evidenced by the presence of Amcor Polska (the Polish operation of the Australian packaging company Amcor) which represents Australia's biggest commercial operation in Poland.
Macquarie Group is currently managing a global infrastructure fund that has invested in DCT Gdansk, a deep sea container port in Gdansk, Poland. The total investment is valued at about 180 million Euros (A$311 million) and has the potential to position Poland as a major hub for freight and logistics particularly for shipping from the Asian region.
Mr Sanda said there is potential for growth in Australian investment in these and other areas as the Polish economy further expands, incomes rise and demand diversifies.
ENDS Media contact Samantha Mattila, Senior Media Adviser, Ph: +61 2 9390 2388, Mobile: +61 434 567 67
For further news and information from the Australian Trade Commission (Austrade) visit www.austrade.gov.au//mediacentre.
|