Among the largest Member States outside the euro area, the United Kingdom is expected to see an improvement in disposable incomes and financing conditions, which should allow a gradual return of domestic demand growth in 2013 and an acceleration in 2014. For Poland, a deceleration from previous growth rates is projected as external headwinds and the stagnation in the labour market take their toll. The adjustment of the remaining imbalances is subject to a number of challenging interdependencies such as the feedback loop between banks and sovereigns, the impact on domestic.
