Only EU State to Weather 2008 to Be Top Performer in Virus Slump

(Bloomberg) --

As the 2008 financial crisis wrought havoc across the planet, Poland was the only European Union nation able to keep its economy growing. It's about to outperform again as the coronavirus triggers a new slump.

Despite imposing lockdown similar to those that have crippled economies across the continent, Poland's gross domestic product will only shrink 4.3% this year, according to European Commission forecasts released Wednesday. That compares with Greece at the other end of the scale, which is set to contract 9.7%.

Poland had been enjoying expansion of more than 4% for the past three years and is the biggest net recipient of EU development funds. It's also re-tooled its economy toward domestic consumption from exports, helped by generous state benefits.

Looking ahead, it's crisis-fighting efforts will result in a budget deficit that's wider than all other EU states' save France, Italy and Spain -- those hit the worst by Covid-19 -- according to the Commission.

©2020 Bloomberg L.P.