May 23, 2012, 12:01 a.m. EDT
Crisis defines Poland, Turkey appeal
Two countries poised for growth, but threatened by euro-zone crisis
By William L. Watts, MarketWatch
Poland has managed to distance itself from Europe’s debt crisis and is among
the economies poised to drive regional growth in the years ahead.
Above, Warsaw’s skyline.
WARSAW (MarketWatch) — Not all of Europe is on the brink of financial disaster.
Two of the nations that fought hardest for closer ties to Western Europe in recent years may now be glad they didn’t get everything they wanted. With the European Union’s traditional powerhouses stumbling, solid growth in both Poland and Turkey may offer the best opportunities in the region.
“Emerging Europe is the cheapest region in the world, trading at three to four times earnings. It’s cheap relative to anything else in the world,” said Sam Vecht, head of the emerging Europe equity team at BlackRock Inc.
Turkey and Poland wowed observers with their economic performance following a global financial crisis that left regional peers hobbled. Both relied on youthful populations, relatively low debt levels and expanding middle classes to position themselves as the “New Tigers,” poised to help drive future global growth. But high unemployment, volatile currencies and reliance on foreign investment could come back to haunt them, especially if the euro-zone debt crisis spins out of control, observers said.
Poland was the only European country to avoid recession in the global financial crisis that followed the 2008 collapse of Lehman Brothers. Since the start of the crisis, Poland’s economy has grown by 15%, according to the International Monetary Fund, easily topping its next closest EU rival, Slovakia, at 8%.
More: http://www.marketwatch.com/story/crisis-defines-poland-turkey-appeal-2012-05-23?dist=beforebell
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