Some of the world’s fastest-growing and smallest economies, as well as their exchange traded funds (ETFs), have been left reeling in the wake of the global financial crisis.
One such country is Poland, which is struggling with a weakened currency and a falling stock market after previously enjoying a go-go atmosphere.
In response to the newfound changes, developers have halted building, banks are hardly lending, and the zloty has lost value against the euro and the U.S. dollar. Nicholas Kulish for The New York Times reports that in a country that seemed to be on the fast track to full membership in the Western club, the question on everyone’s lips is, “Why us?”
The latest turns that the economy has taken has caught many financial experts by surprise; they thought the indicators pointed to a fundamental economic soundness. Adding to the pain, the zloty has fallen around 17% against the dollar over the past week, and more than 10% against the euro. Economic experts have also cut growth forecasts.
Poland is still healthier than her neighbors, Ukraine and Hungary. It appears that the lack of confidence in Central Europe has overflowed out of Hungary and Ukraine, and into other countries nearby.