EC expects Polish economy to grow 3.5 percent y/y in 2015-2017

In 2015-2017 Poland's GDP growth rate will be stable at 3.5 percent, the European Commission predicts in its autumn forecast.

EPA/Ralf Hirschberger / A Polish woman holds a European Union flag as she watches firework lighting up the sky over the border triangle of Poland, Germany and the Czech Republic, Saturday 01 May 2004. Ten countries, including eight ex-communist nations of central and eastern Europe, joined the European Union on Saturday in the bloc‘s most ambitious expansion since its founding in 1957. EPA/Ralf Hirschberger

In May the EC expected the Polish GDP growth rate to accelerate from 3.3 percent this year to 3.4 percent next year.

Economic growth in Poland should stay solid and stable, driven by domestic demand, according to the EC report released on Thursday.

Private consumption should grow in the period in question thanks to higher incomes and households' improved financial situation, which in turn will be a consequence of increased wages and employment as well as low interest rates, according to the EC.

The EC expects unemployment in Poland to drop to 6.8 percent in 2016, or just below the record-low reported in 2008. A predicted substantial rise in employment will slow down slightly in 2015-2017 due to demographic trends, the EC added.

Inflation in Poland is to reach 0.6 percent in 2015, 1.4 percent in 2016 and 1.9 percent in 2017, still below the target assumed by the National Bank of Poland (2.5 percent), the EC report also states.

The EC expects Poland's deficit to decrease to 2.8 percent of GDP this year (from 3.3 percent in 2014) and to remain at this level all the way to 2017.

The EC added in the report that these forecasts were prepared before the October 25 general election. (PAP)

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