The Goldilocks era may soon be over for EU’s star economy

Shifting economy: A woman passes in front of an Orange store in Warsaw. Headline inflation in Poland accelerated 2.4% in May, compared with a year earlier, the highest level in a year and a half and topping a preliminary readout. — Reuters

BOASTING the surging growth of an emerging economy alongside inflation more akin to a developed market, Poland has for years been the envy of Europe. That “Goldilocks” combination, however, won’t be around much longer.

The shift, driven by resurgent consumer prices, marks the end of an era for the only European Union member to avoid a recession during the global financial crisis. Since 2017, it’s balanced an expansion of about 5% annually with record-low borrowing costs.