I expect economic rebound in Q3, Q4: Fin Min

The third wave of the COVID-19 pandemic may delay Polish economic growth, but in the Q3 and Q4 a strong rebound should be observed, Finance Minister Tadeusz Kościński told the Polish Radio One on Thursday.

“According to a current forecast [of GDP growth in 2021] it will be 4 percent. We are in the third wave of the pandemic and we do not know how soon it will end… We do not know whether the third wave will last several weeks or several months. This may shift the boom in the economy, but I expect that already in the third or fourth quarter there will be a clear increase [in GDP growth]," Mr Kościński said.

According to the Minister, inflation this year should be at a stable level with a decreasing tendency.

“I think that the inflationary pressure will be lower, because despite the fact that unemployment is at a very low level, the wage pressure will be lower and this will result in lower inflation. Oil prices will also fall, which will also have an impact. I think inflation will be stable with a downward trend," the Head of the Finance Ministry said.

The Minister also stated that initially in the "Polish New Deal" there would be no proposal to increase the tax-exempt amount to PLN 30,000 (EUR 6571), as some media suggest.

At the same time, Mr Kościński maintained his earlier declarations that the tax system should be changed in such a way that people who earn less pay a lower percentage of their income in taxes than those who earn more.

He also pointed out that he saw no need to raise taxes. "We are constantly looking at how we can lower taxes so that more money stays in our pockets, and as we spend more the economy will grow and naturally more taxes will enter public finances and we can get out of this crisis quite painlessly," he stated.

source: