Government adopts assumptions for next year’s budget

Polish government adopted economic assumptions for the 2018 budget. According to it, the economy will grow by 3.8 percent next year, while the inflation will stand at 2.3 percent, with 6.4 percent unemployment rate. “The basic factor of growth will be private domestic demand, supported by an expected acceleration in public investment funded by the European Union,” a government statement said.

“The improvement of the labor market will be conducive to wage growth. It is expected that in 2017 the nominal growth rate of the average wage in the national economy will amount to 4.8 percent compared to 3.6 percent increase last year. In 2018, the average wage in the national economy will increase by 4.7 percent. Taking into account the expected increase in employment, substantial labor market support from the labor market should be expected in 2017-2018. In addition, family income support will be continued in connection with the implementation of the 500+ Family Program. This allows for the expected real private consumption growth to accelerate to 4 percent in 2017,” the statement said.

VAT rates will remain unchanged in 2018.

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