Polish consumers, businesses switch to survival mode amid restrictions

Polish companies have adopted a survival strategy to minimise their losses, and consumers are likely to do the same due to fears of decreased incomes, a society prosperity report has found.

The Bureau for Investments and Economic Cycles' (BIEC) Prosperity Index has remained unchanged in March compared to the previous month.

After removing the seasonal impact, both employment and real wages have not changed significantly from a month earlier.

"The situation does not allow companies to make decisions that would be important for their growth," BIEC wrote.

"The only thing that remains is minimising losses, both on the profit and the employee sides," BIEC said. "This is the likely reason for the lack of significant changes in employment and wage levels."

The same attitude may also be adopted by consumers, according to the researcher. "The prolonging state of epidemic and the consequences of the related restrictions have extended the time of uncertainty and increased consumers’ concerns about losing some or all of their incomes, which inclines them to adopt a survival strategy," BIEC said.

From Saturday, Poland introduced a nationwide lockdown, with most facilities shut down, except essential ones.