Poland’s economy picked up pace in the fourth quarter of 2015, supported by a healthy labor market and solid investment growth. Despite ongoing political uncertainties, economic data remains solid at the outset of the year: industrial production accelerated in February and the manufacturing PMI picked up in March. Meanwhile, the government remains embroiled in a conflict with the constitutional court which is undermining its democratic credibility. The conflict is centered on a piece of legislation passed by the ruling Law and Justice (PiS) party that would consolidate power and boost the government’s influence over court rulings. The overhaul was ruled unconstitutional by the country’s top court, however, the government has refused to honor the ruling. In April, the EU commission responsible for rule of law sided with the court and urged a speedy resolution to the conflict.
