Poland's GDP growth to reach 4.3 pct in 2019 - World Bank

2019-10-09 10:34 update: 2019-10-13, 10:55
Photo PAP/Lech Muszyński
Photo PAP/Lech Muszyński
Poland's economic growth is expected to reach 4.3 percent in 2019 driven by private consumption and higher investments, the World Bank has said in a report, having revised upwards its April 2019 forecast of 4.0 percent.

"Household consumption, fueled by expected increases in budgetary expenditures and a tight labour market and rising wages, will continue to grow in Poland," World Bank Country Manager for Poland and the Baltic States Carlos Pinerua said as cited in a press statement from the bank. 

"The two biggest challenges Poland’s economy is facing in the medium term are the shortage of workers resulting from current demographic trends and the rising fiscal burden of the implementation of a range of expansionary policies, which will be difficult to reverse for political reasons," Pinerua said.

"Proposals for further social spending, combined with tax cuts and rising liabilities towards pensioners, may push the deficit towards the three-percent EU threshold in the medium-term." 

In the same report, the bank left 2020-2021 GDP growth forecasts for Poland unchanged, at 3.6 pct in 2020 and at 3.3 pct in 2021. (PAP)