Investing Essay

796 Words Jan 5th, 2013 4 Pages
The cliched western view of Poland – bogged down by communist inefficiency and rusting tractors – is long gone. This was the only EU economy ( It joined EU in 2004) to avoid contraction in the dark days of 2009, leading the prime minister to describe Polish economic growth (albeit at a modest 1.6%) as a "green island" amid the red sea of recession elsewhere in the union. There has been massive public investment due to the European football championship (UEFA Euro 2012) that Poland co-hosted. And the weakening Złoty., which suffered when traders became increasingly nervous about the worsening debt situation in Greece and other eurozone members, has helped to keep exports ticking over.
“The biggest threat to the security and
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The Czech Republic enjoys the status of an advanced democracy and is a country based on the free-market economy. Recently, the European Commission has put out reports which analyses the nation’s misuse of EU funding, accusing it of corruption and mismanagement. The Czech economy remains in recession. GDP flash estimates for 2012Q3 shows that aggregate output in the economy dropped 1.5% in real terms year-on-year. Surprisingly, the Czech koruna has failed to respond to weak GDP figures.

The relative macroeconomic stabilisation, fast economic growth and strategic location has made both countries favourable investment targets.
Investment Risk Ratings
Czech Republic AA- A1 A+
Poland A- A2 A-
Both countries are transition economies with similar size compared to other countries from the CEE region. They have both undergone a similar transition towards market economy. Foreign capital inflow was considered an important factor facilitating the privatization and reconstructing process of both economies. The macroeconomic and social situation is similar in both countries, with the Czech Republic being in a slightly better position. Czech Republic’s technological environment is much better than Poland’s. Even though Poland leads CEE region in absolute FDI

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