EC cuts forecast of Poland's 2012 GDP growth by 1.2pp to 2.5%.

By bne IntelliNews November 14, 2011
Poland's economic growth will amount to 4.0% in the whole of 2011 (vs. 3.8% in 2010), as weaker external demand is set to hamper export growth. In addition, turbulence in financial markets have begun to weigh on consumer and producer confidence, ultimately limiting private investment expenditure, employment growth and the expansion of private consumption. These developments are expected to result in real GDP growth slowing to 3.6% y/y in H1 of 2011, the European Commission has announced in its autumn forecasts. Still, it retained the full-2011 forecast at 4.0% (as compared to the May document), but slashed the 2012 projection to 2.5% from 3.7%. The Polish government now plans to pick one out of three economic growth scenarios in early December. These scenarios, to be included in the 2012 state budget draft, assume the 2012 growth at +3.2%, +2.5% and -1.0%, respectively, at the beginning of December. In 2011, the economy is still expected to expand by 4.0%. As for the EU27 perspective, the outlook has deteriorated as compared to the Mat forecasts, the EC also noted. The protracted sovereign-debt crisis has taken its toll on confidence affecting investment and consumption. The first signs of improvements for GDP are projected for the second half of 2012, however, with very limited impact on job creation.
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

EC refers Poland to court for delay on renewable energy rules.

The European Commission is referring Poland (and Cyprus) to the Court of Justice of the European Union for failing to fully transpose EU's Renewable Energy Directive, according to the ... more

ZEW Economic Sentiment Indicator for Poland surges to 42.9pts in February.

The ZEW-Erste Group Bank Economic Sentiment Indicator for Poland (economic expectations) surged by 22.3pts m/m to 42.9pts in February, according to a report by the Center for European Economic ... more

FinMin: Poland to inject EUR 5.5bn of FX reserves to ECB upon euro-zone entry.

When Poland joins the euro-zone, it will have to transfer EUR 5.47bn of its foreign-currency reserves to the European Central Bank, according to a statement by the ministry of finance. The ... more

Follow Us On

Most Read

  1. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  2. Don't mention the "D" word - Ukraine
    6 days ago
  3. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    9 days ago
  4. The 'wet-bulb' set to kill hundreds of thousands of people if temperatures and humidity levels continue to rise
    4 days ago
  5. The models are wrong, climate change is accelerating faster than predicted
    1 day ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    27 days ago
  2. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  3. BRICS announce a blockchain-based payment system to create a common currency
    29 days ago
  4. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    1 month ago
  5. Saudi Arabia to scale back plans for Neom city
    16 days ago

Reports

Dismiss