EC raises its forecast for Polish economic growth

European Comission HD in Brussels. Photo: Wikimedia/Stephane Mignon

Poland’s economy is to grow by 4.8 percent this year, the same as in 2017, according to the EC, raising its forecast from 4.6 percent on Thursday.

The EC analysts put their improved outlook down to the strength of consumer demand and growing investment, with the sluggish private sector also beginning to invest.

The Commission forecast 3.7 percent and 3.3 percent for 2019 and 2020 respectively.

The government deficit forecast has been lowered to 0.9 percent, on the back of higher-than-expected tax revenues and below-forecast spending in several areas of government.

While unemployment in Poland is currently 3.4 percent, according to Eurostat measurements, (5.7 percent according to Polish labour office registers) the EC predicts this will fall to 3.3 percent at the year end, 2.9 percent in 2019 and 2.0 percent in 2020.

By contrast, the average growth of the European Union in 2018 and 2019 was downgraded by 0.2 percentage points to 2.1 percent and 1.9 percent respectively, which the analysts put down to a fall in world trade, as well as uncertainty about the future economic situation.