Abstract

Poland fared far better than most of its emerging European neighbors during the global financial crisis. It is the only EU economy to have escaped outright recession, helped by resilient domestic demand and more limited exposure to the decline in world trade. Perhaps most importantly, Poland entered the crisis with relatively low imbalances, and it had space to implement countercyclical policies to cushion the downturn. Early adoption of a Flexible Credit Line (FCL) arrangement with the IMF provided further cover, lifted investor confidence, and helped maintain access to international capital markets.

An Account by the Staff of the IMF's European Department
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