News

According to the central statistics office, Poland recorded GDP growth of 1.7% in Q3 2009, well above the expected growth of 1.3%.
The headline GDP growth for Q3 compares to a 1.1% rise recorded in the second quarter, and was built on net exports and private consumption.

In an interview on Polish television, Halina Wasilewska-Trenkner, a member of the Monetary Policy Council, expressed the view that the Polish zloty should appreciate in the near future. "On the economic map of Europe we are presently appearing as an unquestionable economic leader," she continued. "We have positive economic growth ... and we have managed to keep a relatively high pace of this growth after a fall in exports, which is a rare phenomenon in the world."

One of PKG Real Estate's properties has been featured in an article in the New York Times newspaper. The manager of PKG Real Estate, Andrew Balfour, was also quoted in the article, which you can read HERE

It's back to work and school in Poland following the summer break, and the signs are positive for the Polish economy and the property market in Krakow.

According to the latest data from the economics ministry, GDP growth for Poland in 2009 is expected to be between zero and one percent. This puts Poland in a very exclusive club, as very few developed countries in the world will experience positive GDP growth in 2009. Looking ahead, the government has announced the approval of a draft budget for next year, which is based on an expected 0.5% GDP growth and 1% inflation. Amid the global economic crisis, the government expects unemployment to rise to 13.8% by the end of 2010 and corporate employment is expected to fall by 2.8%.

According to news reports in recent days, Fiat is set to invest a further 400m EUR in its existing plant in the southern Polish city of Bielsko-Biala. The current factory, which produces more than half a million diesel engines annually, is to be converted to produce the company's new 0.9 litre fuel-efficient petrol engine. It is not thought that new jobs will be created by the investment, but that the current 1400 jobs will remain. It is also positive for the many smaller companies in the region which supply Fiat with various parts.

PKG Real Estate is currently offering two interconnected buildings for sale on the historic market square in Bielsko Biala. Please see the listing here: http://www.property-krakow.com/properties/show/id/497

As of 1st January 2009, new tax thresholds were put in place in Poland. For earnings up to 85 528 PLN per annum, tax is calculated at 18%. For earnings above 85 528 PLN, tax is calculated at 32%

With the effects of the worldwide economic crisis now evident in Poland, it is timely to update the current situation on the property market in Krakow, and prospects for the coming year.

Poland looks to be weathering the world economic crisis better than many emerging economies, with GDP growth expected to be in the range of 2.5-3.5% in 2009, less than in recent years, but still well into Positive territory.

Readers of the Guardian newspaper in Britain have voted Krakow their 2nd favourite overseas city in an annual survey. More than 17000 readers completed the questionnaire for the newspaper.