Poland’s economy is likely to grow around 4.5 percent this year, followed by 3.5 percent next year, the International Monetary Fund has said in a new report.
Presenting the report in Warsaw on Tuesday, the IMF’s Rachel van Elkan was quoted as saying that Poland's economic growth was expected to slow down in the coming years, but that this would be accompanied by a shrinking government deficit and debt.
Its upbeat economy puts Poland in a position to deal with challenges such as population aging and low labour productivity in the years ahead, the IMF report said, as cited by public broadcaster Polish Radio's IAR news agency.
According to the IMF, Polish GDP growth is likely to fall to 2.75 percent by 2023 amid labour shortages, subdued private investment and limited productivity growth.
The IMF notes in its report that unemployment in Poland has dropped to a historically low level, accompanied by reduced income inequality and poverty levels amid higher social spending, the IAR news agency said.
Polish Finance Minister Teresa Czerwińska has welcomed the IMF's predictions that Poland’s general government deficit will drop to a record low of 0.3 percent of GDP this year and that the country’s structural deficit will fall to 1.25 percent of GDP, combined with a decline in the debt-to-GDP ratio to less than 50 percent.In its World Economic Outlook report released earlier this month, the IMF predicted Polish GDP would grow 4.4 percent in 2018.
In April, the IMF forecast 4.1 percent GDP growth for Poland this year.
Ratings agency Moody's in September revised upward its forecast for Polish GDP growth this year to 5 percent.
The Polish economy grew 4.8 percent in 2017, the country’s Central Statistical Office (GUS) said last week, revising upward its previous estimate of 4.6 percent.
Poland’s prime minister has said in the Wall Street Journal that the Polish economy is booming while the country’s ruling conservatives are pursuing a model of "inclusive growth" to create equitable opportunities for citizens.