IMF forecast ' less optimistic than most' concerning Polish economy

The International Monetary Fund (IMF) has issued a warning that the Polish economy will decline in the second half of the year. Although the IMF describes the current condition of the economy as ' quite good' , it says that a major threat is emerging in the form of growing unemployment. This, together with the more stringent fiscal policy, is causing a fall in demand on the market and slower GDP growth. Representatives from the local IMF office were invited by the Ministry of Finance to make an analysis of Poland' s economic performance since May 14th. They concluded that the economy is likely to grow by just 3% this year. Head of the IMF mission to Warsaw, Susan Schadler, admitted that the fund' s view was less optimistic than most forecasts. She warned Poland' s current and future governments not to resort to more deficit spending in order to try and kick-start growth. "Our most important message for 2001 and beyond is expenditure restraint," she said. (Rzeczpospolita, p.B1; Reuters) A.D.