Economic growth up, but budget risking shortfall in 2012

John Beauchamp reports

Even though the figures are higher than previously expected, economists are warning that the government should not rest on its laurels, as the budget forecast for 2012 may be inflicted by a shortfall of up to 20 billion zloty (5 billion euro).

If Poland wants to keep to its EU promise of lowering the public finance deficit next year to below 3 percent of GDP, new ways of saving or increasing revenue must be found, which may in turn may translate into further tax hikes, says Piotr Kalisz, chief economist of Poland’s Citibank Handlowy.