Polish CFOs pessimistic about economy – Deloitte report

The Polish economy is headed for a downturn in the next six months, according to a half yearly survey of FCOs in Central Europe’s top companies, carried out by global consulting firm Deloitte.

“The macroeconomic [H2 2012] prognosis for global and Polish economy unanimously indicates a downturn or second bottom in the crisis,” Deloitte wrote in the report. “Prognosis for Poland indicates an economic slowdown in 2013 to just above 2 per cent.”

Some 49 per cent of CFOs surveyed by Deloitte expect the economy to stagnate in the next six months, compared to 23 per cent surveyed in H1 2012. Some 80 per cent expect this in the Czech Republic and more than 60 per cent in Romania. Nevertheless, according to the survey 22 per cent of Poland’s financial directors still believe that this is a good time to take financial risks.

A recession is expected in Slovenia by some 70 per cent of respondents and 50 per cent of respondents expect a recession to hit Croatia and Hungary. Despite these results some 40 per cent of Croatian CFOs expect M&A to rise slightly in the next six months.

All the survey respondents expect a recession in Slovenia.

Most CFOs expect the Polish currency to stabilize at EUR/PLN 4.1-2.3.

Some 48 per cent of respondents from Poland, Romania and Croatia also predict a bettering of national debt handling in these countries in the long term.

Deloitte carries out the survey twice a year. It surveys financial bosses from some 500 of the largest companies in Central Europe. Countries surveyed include Poland, Czech Republic, Slovakia, Romania, Croatia, Hungary, Bulgaria and Slovenia.