EC changes forecasts for Poland and EU
22:46
The European Commission (EC) has revised the forecast of this year's decline in Poland's GDP to minus 3.6 percent against the expected fall of 4.6 percent in July, according to the EC's autumn forecast. The forecast for 2021 is an increase of 3.3 percent (against 4.3 percent of the growth forecast for next year in July this year). The Commission expects Poland’s GDP growth in 2022 at 3.5 percent.
"The Polish economy has started to recover from the recession levels caused by Covis-19, but the recent rise in infections may temporarily slow this down. General government deficit will worsen significantly in 2020 due to the economic downturn and support implemented to mitigate the unpleasant consequences of the pandemic,” the report reads.
According to the Commission, HICP inflation will accelerate to 3.6 percent in 2020, 2 percent in 2021, and 2.1 percent in 2022.
The EC expects this year a GDP decline in the euro area by 7.8 percent, and next year – an increase by 4.2 percent.
"In recent weeks, the resurgence of infections has led to yet another countermeasures by the many Member States. These are expected to weigh on economic activity and sentiment in the short term, with negative effects on consumption and investment, albeit to a lesser extent than in spring, as the current attitude is more focused on specific goals,” the report reads.
