500+ program will boost GDP growth - NBP

Central bank NBP said on Tuesday that the 500+  child benefit program will boost GDP growth starting from Q2 this year. NBP expects that in 2016 and 2017 growth will stand at 3.8 percent and in 2018 it will slow down to 3.4 percent. "Since the second quarter of 2016 until mid-2017, GDP growth will continue at a higher level as a result of growing household consumption related to the introduction of the 500+ program. In a further perspective, after the  the impact of this factor on private consumption expires, economic growth will fall to 3.4 percent y/y, below the long-term average," NBP said. Recently, American bank, Morgan Stanley created a GDP growth forecast of 3.6 percent per year for Poland due to increased domestic demand fueled by the 500+ child benefit program.