Moody’s credit rating agency upgraded 2018 GDP outlook for Poland to 5.0 percent from 4.3 percent expected earlier. For 2019 the agency raised GDP outlook to 4.2 percent from 4 percent. Moody’s estimated that in 2018 Polish economy would reach the peak of activity in the current cycle. In the medium and long term, the analysts expect a slowdown in growth, in particular due to the tight labor market, demographic trends and potentially lower inflow of EU funds in 2021-27.
The agency also lowered forecast of general government deficit to 1.4 percent of GDP from 1.8 percent (projected in April) for 2018, and to 1.7 percent of GDP from 2.3 percent for 2019.