Citi Handlowy cuts its GDP growth forecast to 0.9% in 2020

US-owned bank Citi Handlowy lowered the forecast of Poland's economic growth for 2020 by approx. 2 percentage points to 0.9 percent in 2020, the bank said. According to the bank, the reaction in fiscal or monetary policy should be strong and quick.

Bank economists assess the negative impact of a pandemic on the economy as conservative and allow risk on the side of the weaker result.

The authors of the report emphasize that the main support for the economy in mitigating the effects of a pandemic should come from fiscal rather than monetary policy.

“Instruments of fiscal and regulatory policy should rather be focused on maintaining economic potential so that after the end of the epidemic, the economy can return to the path of growth,” they stressed.

(ISBnews)