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BMI View: The growth outlook for Poland's large and diversified retail market is mostly positive. Healthy
economic growth in the country, where GDP is forecast to increase by 3.7% in 2016, along with falling oil
prices and strong employment growth all indicate a rise in average household income rates and we are
currently forecasting spending increases across all retail subsectors when measured in local currency
terms, though the loss of the value of the zloty against the dollar means in US dollar terms the market will
contract in the short-term, before returning to positive growth. There are some potential downside risks. A
number of government policies enacted in recent months have been seen as anti-foreign investment and
there are limitations in the labour market which will hamper both the sourcing of adequate skilled labour
and hamper wage growth over the coming years.
Key Views And Developments
? Poland's retail sector continues to attract foreign investment. UK based Tesco announced in June 2016 it
was opening a new distribution centre in Pozna? which will service 140 stores from September 2016,
reiterating its committment to the market following the closure of nine stores in 2015.