The international rating agency S&P today improved its growth estimate for the Polish economy for this year and next. They noted that economic developments in the first quarter exceeded expectations, and also pointed to the money that Poland should receive from the European Union’s recovery fund.
S&P now predicts that Poland’s gross domestic product (GDP) will increase by 4.5 percent this year, while previously it estimated growth of only 3.4 percent this year. It improved its growth estimate for next year to 5.4 percent from the previously expected 4.4 percent, the PAP agency wrote.
“As a result of a clearer situation regarding the use of reconstruction money from the EU and with regard to the result for the first quarter, which exceeded expectations, we are increasing our growth outlook for Poland,” said S&P. According to S&P, consumption in Poland has shown resistance to coronavirus restrictions and should accelerate in the coming months.
“We expect EU funds to start supporting growth from the second half of this year, but much more strongly in 2022,” S&P said . They also predicted that inflation in Poland would remain high for a long time, partly due to wage pressures and the continuation of loose fiscal policies.
S&P estimates that the average inflation rate will reach 3.8 percent this year . It expects a decline to 2.7 percent next year and to 2.4 percent the following year.
Source: PAP and CTK
