World Bank expects Polish GDP growth to slow to 4%
PR dla Zagranicy
The World Bank said on Friday it expects Polish economic growth to slow to 4% this year from over 5% in 2018.
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Government plans to splash out on social programmes may accelerate economic growth in Poland in the short run, the World Bank said.
“However, it would most likely lead to a widening of the budget deficit, which is already projected to increase to 1.4% of GDP in 2019, compared to 0.5% last year, and further to 1.6% in 2020.”
In its latest Economic Update for Europe and Central Asia, released on Friday, the World Bank added that Poland’s growth rate was “robust” compared to other European economies.
The bank said Polish GDP growth would be driven by strong domestic consumption and accelerating investment, supported by low interest rates and the availability of European Union funds.
“On the other hand, the growth dynamics of Poland’s economy will be hindered by a slowing global economy, most importantly in the euro zone, as well as domestic labor shortages,” it added.
Poland notched up the third-fastest GDP growth in the EU in 2018, the European Commission said in February.