Poland, the exceptional east european?

With Europe in meltdown, is Poland an exception? Europe's sixth-largest economy has strong domestic demand, and has not yet adopted the euro: so it was able to devalue the zloty to maintain competitiveness. Poland's economy grew by 3.8% in 2011, and is expected to grow by 2.5% in 2012 and 2.5% in 2013 (OECD forecast November 2011).

Though private consumption is expected to slow, increased exports should compensate for weaker internal demand, allowing the budget deficit to fall from its present 5.3%.

Property slowdown worrying Yet Poland's housing market was Europe's second-worst performer in 2011, down by 10.55% in inflation-adjusted terms.

Prices fell less in major cities, but the downturn is significant:

• In Warsaw, the average price of "exposed units" (i.e. used units) fell 6.6% in 2011 (6.97% in real terms), according to REAS.
  
• Krakow used dwelling prices fell 5.53% (5.90% in real terms).
  
• Poznan used dwelling prices fell 4.57% (4.95% in real terms).
  
• Lodtz used dwelling prices fell 5.46% (5.83% in real terms).
  
• Tri-City used dwelling prices fell 3.44% (3.82% in real terms).
  
• Wroclaw used dwelling prices fell 8.39% (8.75% in real terms).
  

Source: IBTimes.com