IMF like what it sees but differs from the government in forecasts and advice

The International Monetary Fund (IMF) has estimated GDP growth this year at 1%, and at 2.75% next year. In the following years the GDP dynamics may even reach 5%, but the government has to do its best to tighten its fiscal policy and limit public debt. The forecast is not in line with government data, which puts growth in 2003 at 3.5%. "The difference in estimations allows for inaccuracies, taking into account the situation existing right now. In my opinion, this difference will not impact on next year's budget," said the IMF's head in Poland, Susan Schandler. The fund considers that decreasing the current ratio of public debt to GDP would promote the lowering of interest rates. In the event that inflation is kept low and fiscal policy tightened, which is very likely to happen, a loosening of monetary policy - long-expected by the market - would be possible. Schandler also said, "We positively evaluate the changes in the Labor Code and hope there will be further changes, which would result in a decrease in unemployment". (Rzeczpospolita, p. B2) M.T.