CASE fears government dreams of high growth will cause budget problems

According to CASE (Social and Economic Analysis Center) the economic results of the second quarter, together with the lack of concrete indications of economic improvement, will mean that GDP will increase by 1.3% and not 1.8% as was previously assumed. Growth in 2003 will probably be 2.3% and not 3.5%. Second quarter results revealed that the economy is still stagnating. CASE placed second quarter growth at 1%. The center believes that a shortage of a determination to lower company fiscal costs and diverging financial results between the private and public sector is hampering exports and investment. CASE expressed caution over the surprisingly good results in July, which they write-off as seasonal and as an aberration. The center fears that the recent government assumption of a 3.5% growth for 2003 is highly risky as it threatens to increase the 2003 budget deficit. (Rzeczpospolita, p. B3) P.W.