Moody’s: Poland’s fiscal deficit expected to lower from 2025

Moody's, the credit rating agency, predicts that Poland's fiscal deficits will decrease from 2025, but the projected increase in the general government sector's debt to 54% of GDP in 2024 is credit negative for the country. They attribute the 2024 deficit of 4.5% of GDP to economic cooling in H1 and upcoming parliamentary elections.

While Moody's expects fiscal deficits to decrease from 2025 onward, the government's plans pose a risk to their forecasts. The agency suggests that Poland's medium-term fiscal prospects will depend on the outcome of the autumn parliamentary elections. The budget project for 2024, with a deficit of PLN 164.8 billion, stands in contrast to EU fiscal rules.

Source: strefainwestorow.pl