In yet another sign of Polish financial success, a Bloomberg interview with the country’s Financial Minister Jacek Rostowski shows their emergence among European counterparts. As the chart illustrates, Poland continues to be the only E.U. nation not to experience a recession since the 2008 financial crisis.
“There is no reason why we should be paying a penny more on our bonds than the Czechs,” he said in a May 22 interview in Warsaw. “It’s not so long ago that Poland was considered less trustworthy than Hungary, not to speak of the number of some other countries. Today, we’re seen as very much stronger. I think that process will continue until we reach more or less parity, or maybe a little bit better, than the Czech Republic.”
Rostowski’s confidence is well founded and backed up by Polish bond outperformance over the past three years. They have handily trounced returns of mightier Bunds and even U.S. Treasuries.
Polish government bonds returned 29 percent in the past three years, compared with 17 percent for German debt and 13.5 percent for U.S. debt, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. They earned 14.6 percent in the past 12 months and 3.2 percent this year, beating both German and U.S. bonds, the indexes showed.