Question
Poland, after its transformation into a market economy in the early 90's, has consistently been running a current account deficit as imports outpaced exports. Despite
Poland, after its transformation into a market economy in the early 90's, has consistently been running a current account deficit as imports outpaced exports. Despite this fact, Poland has been one of the best performing countries among those who were undergoing the transition from a planned to a market economy. How can you reconcile the strong performance in terms of GDP growth with the evolution of exports and imports (given that net exports are a component of GDP)? Looking forward, what would be the main indicators or variables that can give you a good sense of the future performance of the Polish economy?
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