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EC forecasts 3.2% growth for Poland in 2015

PR dla Zagranicy
John Beauchamp 05.02.2015 13:22
The European Commission’s Winter Economic Forecast, published Thursday, estimates that the EU’s overall economic growth will reach 1.7 percent this year, with Poland’s GDP forecast at 3.2 percent in 2015 and 3.4 percent next year.
Photo: sxc.huPhoto: sxc.hu

A statement from the European Commission reads “Growth prospects across Europe are still limited by a weak investment environment and high unemployment.”

“However, since the autumn, a number of key developments have brightened the near-term outlook. Oil prices have declined faster than before, the euro has depreciated noticeably, the ECB has announced quantitative easing, and the European Commission has presented its Investment Plan for Europe. All these factors are set to have a positive impact on growth,” the statement continues.

In its latest estimates, the European Commission raised Poland’s 2014 GDP growth from 3 percent in November 2014 to 3.3 percent, making it the second-fastest growing economy last year, alongside Hungary and Malta. Ireland had the strongest growth in the EU in 2014, at 4.8 percent.

The Commission notes that “Poland’s real GDP is expected to have grown by 3.3 percent in 2014, mainly due to strong domestic demand. Private consumption accelerated, as the initial confidence impact of the Russia-Ukraine crisis on households turned out to be less important than expected.”

The EC also raised its forecast for Poland in 2015. Earlier, it gave Poland 2.8 percent growth this year, now that figure has been hiked to 3.2 percent.

In terms of public finances, Poland is also set to lower the debt-to-GDP ratio this year and next, with the Commission stating that the “general government deficit is estimated to have fallen to 3.6 percent of GDP in 2014, from 4 percent in 2013”.

“The forecast for the deficit is projected to fall to 2.9 percent in 2015,” the EC report on Poland reads.

In terms of unemployment, the EC report states that “Poland’s labour market should benefit from the solid pace of economic activity and growing production capacities.”

“The unemployment rate is set to decline from 9.1 percent in 2014 to 8.3 percent in 2016. A tighter labour market is expected to translate into nominal wage growth and, in turn, higher disposable incomes,” the report informs. (jb)

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