Finance Ministry releases cautious 2008 budget figures

According to analysts the forecasts are realistic but very cautious. Mateusz Szczurek, an economist from ING Bank Slaski, said that he does not see any threats to these forecasts and the GNP is likely to be higher. However, inflation is less certain. Szczurek said that so far salary increases have not been accompanied by an increase in inflation and that the Finance Ministry could not assume any other level of inflation because it would prove an incentive for Monetary policy council to increase interest rates. Janusz Jankowiak, an economist from the Polish Business chamber, said that higher levels of inflation are possible while Ryswzrd Petrus, an economist from BPH, said that GNP could even reach 5.8%. In June the Finance Ministry will announce more data on the basis of which it will plan 2008 profits. (Rzeczpospolita, May 12-13, p B2) M.M.