ECONOMY / Prime Minister: Poland's accession to the group of developed countries is a symbolic date

Poland has become the first country from Central and Eastern Europe to be ranked a „developed market” on the FTSE Russell index.

The country now joins the likes of the UK, US and Japan in the index’s list of the 25 most advanced global economies.

It marks the first time in a decade that a country has made the leap from emerging market to developed market in the index’s rankings.

Poland’s accession to the group of developed countries is a symbolic date, we owe it to our entrepreneurs

— said Prime Minister Mateusz Morawiecki commenting on the decision of the leading global index provider FTSE Russell, which promoted Poland from Emerging Market to Developed Market status.

Entering the group of developed countries is a certain symbolic date (…) These are our entrepreneurs who brought us to this club; they have successfully led us to the group of developed countries

— said Morawiecki during the Monday conference at the Kross company in Przasnysz.

The Prime Minister assessed that „the economic development in Poland is more and more mature”. He pointed out that we produce, among others, more and more high margin products which is beneficial for the Polish companies.

I am glad that the agency (FTSE Russell - PAP) appreciates macroeconomic stability (Polish - PAP), very low level of unemployment, inflation in check - below the NBP inflation target - and of course, high economic growth. It is certainly satisfactory

— added the head of the government.

On Monday, the FTSE Russell agency promoted Poland from the group of Emerging Markets to Developed Markets. Poland thus has been classified as one of the 25 most advanced global economies in the world.

The head of the FTSE analysis department, Russell Reza Ghassemieh, claimed in a conversation with the Polish media that the upgrade of Poland to Developed Market status will have positive consequences for the capital market, because “it will change the behavior of investors and market characteristics”.

Emerging markets are often associated with turbulence, because in the situation of change of macroeconomic conditions they usually show significant fluctuations. The exclusion of Poland from this group is positive, and will also allow attracting (investors) characterized by different type of asset allocation

— he analyzed.

In turn, the president of the Warsaw Stock Exchange (WSE) Marek Dietl emphasized that Poland’s upgrade to an elite group of 25 developed countries is the result of organic work of successive governments and regulators, who took care of the development of the Polish capital market.

Usually, the markets are working (for such a promotion) for about 50 years - the last two reclassifications of Israel and South Korea - and it took us 27 years. (…) The capital market has undergone a large transformation, which is due to many heads of stock exchange, but also to the Commission of Financial Supervision, NBP, finance ministers. This is an (effect) of a consensus, which clearly cuts across political divisions, to make it work and today we can observe the effects

— he explained in an interview with the Polish media.

Dietl remarked that during the Friday session of the stock exchange a record turnover of 5.5 billion (PLN) was recorded, which - in his opinion - heralds the beginning of reshuffling related to the reclassification of Poland.

Poland has been reclassified from Emerging Market to Developed Market status on 29 September 2017, as a result of the annual classification of countries. The decision took effect in conjunction with the FTSE Global Equity Index Series semi-annual review on 24 September 2018.

PAP/mk/KJ