The ratings on the Republic of Poland reflect 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 continued strong growth in the medium term. Standard&Poor's Ratings Services expects average growth well above 5% over 2007-2010, without creating significant imbalances
