Fitch revises down GDP forecast for Poland

Fitch Ratings said Poland's GDP growth will remain strong, but it has revised down the forecast to 3.2 percent in 2016 from 3.5 percent following a weak Q1 (Eurostat said on Friday that the Polish economy contracted 0.1 percent q/q). Fitch forecasts GDP growth at 3.5 percent in 2017 and 2018 and expects slightly higher deficits, at 2.8 percent  in 2016 and 3.0 percent in 2017, based on lower GDP and tax growth assumptions. "Poland's reliance on rapid GDP growth to meet fiscal targets, and potential political pressure on the government to deliver on electoral promises, mean that any economic slowdown, such as that seen in the first quarter of 2016, increases fiscal risks," Fitch Ratings said.