Economy Minister optimistic about growth and expects inflation to fall

Economy Minister Janusz Steinhoff said yesterday that economic growth would reach 5% this year, a sign the economy is in good shape, developing quickly, with no major threats in sight. The Ministry forecasts this year' s inflation at 9.5% year-on-year, and expects it to fall in the coming months. "I totally cannot understand where fears of an economic crisis come from," said Steinhoff. He also confirmed that next year's budget will be tight, with an economic deficit of no more than 1.6% of GDP. Analysts at the Gdansk Institute for Market Economy (IBnGR) share Steinhoff's positive view of the economy, although they do expect a slowdown in economic growth next year. Both the Institute and the Ministry, however, are concerned about growing unemployment, which is expected to reach 14.5% by the end of the year, up from 13% year's end in 1999. (Gazeta Wyborcza, p.20)