For the Śnieżka Group, the Polish market is key from the standpoint of the Group’s revenues – its condition is best illustrated by the Gross Domestic Product.
According to the Central Statistical Office, in 2016 the Polish economy was growing at the pace of 2.8% (yoy), compared to 3.6% recorded in 2015. The result recorded in 2016 turned out the weakest for 3 years and was accompanied by the decade’s lowest level of investments which, next to consumption, are perceived as the main factor affecting the growth of economy. Economic growth in 2016 was supported by the highest in several years internal demand whose recovery was, in the analysts’ opinion, associated with, among other things, increasing employment and salaries, family proceeds from the 500+ program, and the accompanying low inflation, leading to increase in the value of the funds at the households’ disposal. According to economists, one of the key factors that affected the economic slowdown in Poland in 2016 was the decline in investments by 5.5%. In the experts’ opinions, the slowdown of investment activity is the consequence of the delays in spending of the funds from the new EU financial perspective and the negative impact of the increased uncertainty on the investment activity of the private enterprise sector, associated with, among other things, the unstable PLN exchange rate and the geopolitical situation (including, for example the presidential elections in the US or Brexit).
The Company’s results were also affected by the situation in the construction sector and the trends in construction. According to detailed data published by GUS in March 2017, 10.2% more apartments were completed in 2016 than in the corresponding period of 2015, when a 3.2% growth was recorded. In the same period of 2016 the number of facilities for which construction permits were obtained or construction designs were submitted, was 12% higher than the year before, with a lower yoy growth rate. In 2016, also the number of started apartments increased 3.3% (compared to the 13.7% increase in the year before).