World Bank upgrades Poland's GDP growth forecast to 1.5% in 2013, 2.8% in 2014

By bne IntelliNews December 19, 2013

Poland's economic growth will probably slow down to 1.5% y/y in 2013 from 1.9% reported in 2012, but will rebound to 2.8% in 2014, the World Bank said in the latest issue of its EU11 Regular Economic Report. In June, it projected Poland's 2013 GDP growth at 1.0% and the 2014 growth - at 2.0%.
The institution also said it expects the fiscal deficit in Poland to widen to around 4.6% of GDP in 2013, from 3.9% of GDP in 2012, due to revenue shortfalls mainly from VAT, excise duties and CIT, and despite expenditure cuts embedded in a budget amendment from September.
Poland's fiscal deficit in 2014 is expected to shrink by around 1pps of GDP, also reflecting large savings from changes in the pension system and the continuation of spending controls introduced in 2011- including a freeze in public sector wages and personal income tax thresholds as well as maintaining a higher VAT rate, the World Bank's report also reads.
It also expects the debt to GDP ratio to decrease on the back of sizable transfer of sovereign debt (8.5% of GDP) from the open pension funds to the state pension pillar.

Related Articles

Czech judiciary denounces Poland's move to end separation of powers

Senior Czech judges on July 21 denounced Poland's judicial overhaul as an attack on the rule of law. With big street protests in the Czech Republic's neighbour seemingly gathering momentum – 120 ... more

Strongly profitable Czech petrochemical maker Unipetrol puts cracker explosion behind it

Unipetrol looks to have finally got over the August 2015 fire and explosion that wrecked its steam cracker, an indispensable installation in the production of ethylene feedstock needed to manufacture ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Dismiss