GDP decline in 2020 might exceed 3.4 pct: Finance Ministry

The Polish Finance Ministry does not rule out a downward correction to its current GDP growth forecast of minus 3.4 percent, the deputy director of the ministry's macroeconomic policy department, Joanna Bęza-Bojanowska, told a press conference on Wednesday.

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“There is probably a downward correction to this forecast,” she said, adding that “it looks like that forecast was too optimistic. The European Commission, which published a forecast several weeks after us, showed a projection of minus 4.3 percent.”

She added that the market consensus assumes that the Polish GDP will decrease this year by between 4 and 5 percent. The decline of the GDP was caused by the pandemic of SARS-CoV-2 coronavirus.

Increased debt

The finance ministry also presented the data about the State Treasury debt. At the end of April 2020 stood at PLN 1.07 trillion (EUR 240 bn). It went up by PLN 35.4 bn (EUR 7.7 bn) or 3.4 percent from March.

The domestic debt totalled PLN 811.6 bn (EUR 178.22 bn) while the debt in foreign currencies stood at around PLN 260.2 bn (EUR 57.14 bn) and constituted 24.3 percent of the entire debt.