The EU Commission lowers its growth forecast for Poland

A report by the European Union Commission on Wednesday stated that it expects Poland’s GDP to grow by 3.4 percent in 2017, which was a slightly lower forecast than the 3.6 percent it had predicted earlier this year. It pointed to the tax changes implemented by the new administration in Warsaw as a possible detriment to economic growth. “It is the prolonged uncertainty about the direction of economic policy, eg. a change in the tax system and the role of companies under the control of the Treasury, and questions about (that),” the report stated.

On the other hand, the report was cautiously optimistic about investment possibilities in Poland. “Public and private investment could accelerate faster than we expect,” it said. The Commission also forecast the return of inflation to Poland, although at a relatively low rate of 1.3 percent in 2017. Inflation reached a record low of -1.6 percent in February of 2015.

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