Economy Minister rides growth optimism wave a little too high

Economy Minister Jerzy Hausner forecasts that GDP growth might reach 6% in 2005 and even 7% the year after. Economists dismiss these projections, but they do not exclude them as fantasy. However, such growth might stimulate inflation, increase the current account deficit, and lead the Monetary Policy Council to peruse a tighter monetary policy. According to the chief economist of BZ WBK Maciej Reluga, the predictions of the Minister are a pipe dream, but "In the light of recent macroeconomic results, it seems that 3% growth for 2003 could even be an underestimation." Economists maintain that in order to accelerate growth, privatization must first be speeded up together with reform of public finances. (Parkiet, July 19-21, p. 7) M.M.