World Bank lowers 2016 GDP forecast for Poland

The World Bank has lowered its forecast for GDP growth in Poland in 2016 to 3.2 percent from 3.7 percent, due to a slowdown in investment. But it foresees accelerated GDP growth in 2017 and 2018 reaching 3.4 percent and 3.5 percent respectively because of an expected rebound in investments, including those financed from public funds, and stronger private consumption.

The World Bank also forecasts that in 2016 the public sector deficit may be only 2.1 percent, compared to 2.6 percent last year, due to a significant drop in public investment. “Delays in the disbursement of EU funds for 2014-2020 have contributed to a significantly higher local government budget surplus in the first half of 2016 than in the previous year. In 2017, however, the deficit could rise to 2.9 percent and in 2018 to 3.4 percent,” the World Bank reports.

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