Economics
The Goldilocks Era May Be Soon Over for EU's Star Economy
- Inflation hits 18-month high in May, nears central bank target
- Long-absent price growth piles pressure on rate policy ‘doves’
Photographer: Piotr Malecki/Bloomberg
This article is for subscribers only.
Boasting the surging growth of an emerging economy alongside inflation more akin to a developed market, Poland has for years been the envy of Europe. That “Goldilocks” combination, however, won’t be around much longer.
The shift, driven by resurgent consumer prices, marks the end of an era for the only European Union member to avoid a recession during the global financial crisis. Since 2017, it’s balanced an expansion of about 5% annually with record-low borrowing costs.