OECD improves Poland’s GDP growth forecast but warns of general slowdown

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The Organization for Economic Cooperation and Development (OECD) has raised its forecast for Poland’s GDP growth from 3.5 percent to 3.8 percent in 2020. OECD predicts GDP growth will slow to 3 percent in 2021.

The spokesman of the Ministry of Finance, Paweł Jurek, explained that Poland’s GDP growth in 2019 will be 4.3 percent (up from 4.2 percent in the previous forecast) and 3.8 percent in 2020, an increase from a previously forecasted 3.5 percent.

Jurek also stated that the OECD has lowered the forecast of Poland’s budget deficit and the general government debt.

The OECD forecasts a slowdown in Poland’s GDP growth in 2021, claiming it will drop to 3 percent with an inflation rate expected at 3 percent as well. OECD economists recommend Poland implement fiscal tightening and earlier increases in interest rates to limit inflation pressure.

“Both private and public investments will slow down and the low growth of global trade will limit export dynamic. The private consumption increase will gradually slow down, along with the atrophy of the influence of new social transfers and tax cuts,” the report reads.