KERM accepts predicted 5.7% GDP growth and 6.1% inflation rate for 2001

The Cabinet Economic Committee (KERM) has accepted the economic basis of the 2001 budget, which is forecasting GDP growth of 5.7% and an inflation rate of 6.1%. These are the KERM's recommendations for the government and will serve as a basis for salary negotiations with trade unions and employers. However, it does not say what the budget deficit will be next year. It is thought Finance Minister Jaroslaw Bauc wants a public finance gap of around 1.9% to 2 %. The deficit was expected to reach 2.75% this year, but it will likely turn out to be lower at around 2.2%. (Gazeta Wyborcza, page 24) T.J.