The economy might be recovering, but investments remain sluggish

Although GDP was growing at 4.7% during the final quarter of 2003, expenditures of domestic companies increased by only 0.1% over the same period. Analysts believe that the recent fall in national prosperity has discouraged company's to invest, but more importantly businesses are waiting to see what will change after EU accession. Another sign of economic stagnation is a lack of interest among investors to borrow capital from banks. Henryka Bochniarz, the head of the Private Employers' Confederation said that another aspect is the current political uncertainty and constantly changing legal regulations, which do not encourage potential investments. However, there is light at the end of the tunnel. "Investments are increasing in the processing industry, by 19.6% during the first three quarters of 2003," said NBP chairman Leszek Balcerowicz, after Wednesday's meeting of the Monetary Policy Council.