Foreigners are spending money in Poland

Shopping mall in Warsaw, Poland (Dan, CC BY)

In Latvia corruption may cost up to EUR5bn a year

Hungarian government may change budget without parliament’s approval

Real wage and pension growth should be fixed in 2017 Ukrainian budget


Foreigners spent PLN37.7bn (approx. EUR8.8bn) on goods and services in Poland in 2015,  up 6.4 per cent as compared with the spending in 2014.

The Polish Radio presents data from Polish Central Statistical Office (GUS). It shows that the expenditures of Poles abroad also increased: by 2.7 per cent y/y in 2015 to PLN18.6bn. The portal quotes GUS: “In the fourth quarter of 2015, expenditures of foreigners in Poland reached approximately PLN 8.9 billion, while that of Poles reached PLN 3.9 billion, compared to the same period of 2014”.



“Cost of Non-Europe in the Area of Corruption” is a study based on three corruption perception indexes, conducted by RAND Europe and released March 28th.  It shows that Latvia loses 13.16 per cent to 19.24 per cent of its GDP annually due to corruption, or EUR3.4bn to EUR5.08bn.

“In terms of losses caused by corruption, Latvia is ranked alongside Lithuania, Poland, Slovakia, Romania, Bulgaria, Croatia, Greece, and Italy,” Baltic-Course writes.

According to the survey, the annual losses of whole European Union suffers GDP range between EUR179bn and EUR990bn. In 2014 the losses were estimated at EUR120bn.

“Corruption is a big black hole in the heart of the European economy. If companies see the public procurement process is rigged then they are not going to take part in that bid and therefore the public loses out because these aren’t competitive tenders,” Baltic-Course quotes Carl Dolan, director of Transparency International.



A new bill passed by the Hungarian Parliament on March 30th will allow the government reshuffling budget without parliament’s approval. The bill was submitted to the parliament by Hungary’s Cabinet Chief János Lázár in late February.

Under the new law the government will be allowed “to make decisions through government decrees on funding for various tasks, even if the necessary budget appropriation can only be ensured at a later date,” Budapest Business Journal reports. “Before the legislation was approved, reshuffling budget appropriations, either among existing tasks or towards new goals required, except in special cases, parliamentary approval,” the portal adds.

Hungarian press agency MTI explains that funding for such measures would only be allowed through reallocation and could not raise the deficit. Additionally, there is a rule allowing the use of no more than 40 per cent of the annual budget reserves for extraordinary government measures in the first half of the fiscal year will remain in force.



“Growth of pensions and salaries in the budget-funded sector in 2017 should exceed the inflation level and the concrete figures should be fixed in the draft budget resolution. (…)

We may give a clear benchmark to have growth of social payments and people’s income up to 2 per cent more than inflation. These are at least some goals we set for ourselves to achieve in 2017-2019,” Ukrainian Prime Minister Arseniy Yatseniuk said at a cabinet meeting in Kyiv on March 30th. Interfax reports Yatseniuk informed that salaries and pensions in 2015 increased by 13 per cent and 19 per cent, respectively, while inflation was 43.3 per cent.

In 2016 salaries and pensions will increase by 12 per cent with inflation projected at 12 per cent. Inflation is expected to slow down in 2017 to 8 per cent. 


What’s up in indexes?

BUX was up 2.24 per cent Wednesday, March 30th – increasing from 25737.40 index points (Tuesday, March 29th) to 26314.30 index points. From year-end it’s up 10.01 per cent.

BET (of Bucharest Stock Exchange) increased from 6711.78 index points Tuesday, March 29th to 6715.45 index points Wednesday, March 30th. So it’s up 0.05 per cent d/d. From year-end it dropped by 4.12 per cent.

PX (of Prague) increased from 893.17 index points Tuesday, March 29th to 893.17 index points Wednesday, March 30th. So it’s up 0.48 per cent d/d. From year-end it lost 6.60 per cent.

WIG20 was up 2.36 per cent d/d and up 7.57 index points from year-end. Wednesday, March 30th it closed at 1999.93 index points. The day before it was 1953.84 index points.

OMXT (of Tallinn) lost 0.39 per cent – decreasing from 968.80 index points Tuesday, March 29th to 964.99 index points Wednesday, March 30th. So it dropped by 0.39 per cent d/d. From year-end it’s up 7.34 per cent.

OMXR (of Riga) increased from 603.12 index points Tuesday, March 29th to 608.33 index points Wednesday, March 30th, growing by 0.86 per cent. From year-end the index grew by 2.35 per cent.

OMXV (of Vilnius) lost 0.03 per cent – decreasing from 505.61 index points Tuesday, March 29th to 505.45 index points Wednesday, March 30th. From year-end it’s up 4.00 per cent.

SAX (of Bratislava) lost 0.55 per cent – decreasing from 328.03 index points Tuesday, March 29th to 326.21 index points Wednesday, March 30th. From year-end it’s up 11.58 per cent.

SOFIX (of Sofia) dropped by 0.26 per cent d/d and by 3.65 per cent from year-end. It decreased from 445.22 index points Tuesday, March 29th to 44.06 index points Wednesday, March 30th.

UX (of Kyiv) lost 0.01 per cent d/d – falling 540.79 index points Tuesday, March 29th to 540.71 index points Wednesday, March 30th. From year-end it lost 21.16 per cent.

CROBEX (of Zagreb Stock Exchange) increased from 1658.90 index points Tuesday, March 29th to 1663.88 index points Wednesday, March 30th. So it’s up 0.30 per cent d/d. From year-end it lost 1.52 per cent.

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