Expansive fiscal policy and high public debt remain biggest threats - EBRD

According to report published yesterday by the European Bank for Reconstruction and Development (EBRD), the main threats to the economy are the expansive fiscal policy and high level of public debt financed by the inflow of portfolio investments. "[The debt] will have to be limited due to the Maastricht criteria, which have to be met in order to enter European Monetary Union," read the report. The general prospects for the economy are rather positive as, despite low market activity, the country has managed to avoid recession thanks to high exports and domestic consumption. According to the report's authors, the Polish economy should grow by about 3% in 2003, due to increased internal demand. They also predict that inflation should remain within the 2%-3% range, while the current account deficit should not exceed 4% of GDP. (www.onet.pl) M.M.