Resilient growth but challenging demographics S&P Global Ratings expects Poland's economy will expand by 4.3% this year. Poland's economy is rebalancing toward services, including service exports, partially explaining the economy's resilience to Germany's slowdown. Challenging relations with the EU are likely to persist. Iimmediate macroeconomic risks from looser fiscal performance are contained. Fiscal policy is procyclical. We expect cumulative budgetary stimulus in 2019 and 2020 will exceed 1.6% of GDP. Poland's floating exchange rate regime boosts the sovereign's fiscal and external flexibility. Financial stability should continue despite higher legal risk and potential higher costs in the banking sector, following the European Court of Justice's (ECJ) ruling on legacy Swiss franc (CHF) mortgages. The stable outlook reflects Poland's balancing risks coming
