OECD cuts latest growth forecast for Poland

On Monday, the Organization for Economic Cooperation and Development said in its economic forecast for Poland that GDP would remain at lower-than-expected levels for 2016, and then rise later in 2017. Specifically, the report indicated that after a period of 2.6 percent growth(in 2016), “we forecast that GDP growth will accelerate to about 3 percent per annum in the period 2017-2018, due to higher social transfers, low interest rates and rising spending of EU funds. Greater disposable income and consumption, and the transition to a new perspective of the EU budget and higher capacity utilization should lead to an acceleration of investment,” the organization said in a report that was picked up by the Polish press. However, the report cautioned that, since the GDP increase forecast was at 3.2 percent (almost half a percentage point lower than had been expected) rising expenditures in Poland could push the deficit over 3 percent. “Although the overall fiscal path remains largely adequate, ongoing reforms are not conducive to long-term growth and participation of women in the labor market,” the report read. Investment was forecast to grow by 2.5 percent in 2017, down from the earlier 4.7 percent forecast made in June of 2016.