The Organization for Economic Co-operation and Development (OECD) forecasts a decline in Poland's GDP in 2020 by 3.5 percent, and in 2021 and 2022 an increase in the indicator by 2.9 and 3.8 percent, results from the latest forecasts of the organization. The OECD forecasts the balance of the Polish capital sector in 2021 at the level of -6.8 percent, and in 2022 at -4.8 percent.
"After a strong rebound in Q3 2020, due to deferred consumption and government support, the domestic product will decline again at the end of 2020 in the face of new epidemic restrictions. Domestic demand will recover in 2021-22 against the prospects and actual use of an effective vaccine against Covid-19. Unemployment will peak in 2021 and slowly decline,” the report reads.
The OECD forecasts the balance of the Polish general government sector in 2020 at the level of -10.8 percent of GDP, in 2021 at the level of -6.8 percent, and in 2022 at -4.8 percent.
Inflation in 2021 in Poland will amount to 2.3 percent, and in 2022 to 2.6 percent.
The OECD recommends withdrawing fiscal support in 2021 "in a reasonable way" so as not to harm the recovery of the economy.
(PAP)