The ratings on the Republic of Poland are supported by its competitive and increasingly diversified economy, solid but balanced growth prospects, and moderate external leverage. The ratings on Poland remain constrained, however, by the weak perspective for further structural reforms, slow progress in consolidating public finances, and by high, albeit falling, unemployment. Strong export growth, as well as a sustained recovery in domestic demand should support strong but balanced GDP growth of about 4.8% per year in 2007-2009. At the same time, inflationary pressures should remain moderate, with inflation rising to reach the central bank's target midpoint of 2.5% toward the end of 2007. The recent change at the helm of the central bank, although raising concerns about potential political
