The upgrade of the Republic of Poland on March 29, 2007, reflected the country's strong and balanced growth prospects, which have remained decoupled from Poland's deteriorating political environment. Further ratings support stems from a competitive and increasingly diversified economy, and a moderate and declining external debt burden. The ratings remain constrained, however, by political instability that obstructs progress in structural reforms; a high general government debt burden; and by high, albeit falling, unemployment. Strong investment growth and a recovery in private consumption are key drivers behind Poland's brighter growth prospects. A low investment-to-GDP ratio and high unemployment leave room for strong growth to continue over the medium-term. We expect growth to average 5.6% over 2007-2010, without creating significant imbalances in
