The two elections taking place in 2019 could “raise social pressure” and public sector unions may demand a higher wage, a Santander Bank Polska economist told Poland In.
The public spending budget for 2019 passed by parliament last week that foresees economic growth of 3.8 percent and inflation of 2.3 percent had “no major surprises” for Santander’s Director of Economic Analysis Piotr Bielski, who is forecasting the same rate of GDP growth and inflation of 1.7 percent.
The main risks that the economy may encounter this year are external shocks, such as Brexit and trade conflicts, Mr Bielski says.
However, he also sees the potential for trade unions in the public sector to take advantage of the approaching elections and make demands for higher pay. It will then be seen whether the government gives in to those wage demands.
The European parliamentary elections are at the end of May this year, while the parliamentary elections take place in October.
Click here to watch the full interview.