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Polish economy to slow down: World Bank

6 April 2019 13:12 (UTC+04:00)
Polish economy to slow down: World Bank

By Trend

Poland's economic growth rate is expected to slow down to 4 percent in 2019, down from over 5 percent in 2018, the World Bank said in a public statement, Trend reported citing Xinhua.

The decrease is primarily explained by a slowing global economy and domestic labor shortages, according to the statement released upon the launch of the World Bank's latest Economic Update for Europe and Central Asia.

Additionally, social expenditures announced by the Law and Justice government in February -- including payments to families with one child and a thirteenth pension -- would accelerate growth on the short run but lead to a widening of the budget deficit.

According to the World Bank, Poland's deficit is projected to increase to 1.4 percent of GDP in 2019 and 1.6 percent in 2020, compared to only 0.5 percent in 2018.

The World Bank estimates that Poland's GDP growth rate in 2020 will be 3.6 percent and will slow to 3.3 percent in 2021.

"The Polish economy is still growing at a rate significantly above the EU average. The low unemployment rate and strong wage growth are still driving private consumption; investments, both public and private, are growing too," Carlos Pinerua, World Bank Country Manager for Poland and the Baltic States, said.

"In 2018, the fiscal budget was close to a balance. We do expect, however, that Poland's fiscal situation may deteriorate soon."

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