OECD: Polish economic situation fairly difficult, fiscal policy too lax

In its report on the global economy, the Organization for Economic Cooperation and Development (OECD) is warning Poland to tighten its fiscal policy since it is in a fairly difficult situation. According to the report, when the influx of foreign direct investments slows down, it will be even more difficult than it is now to finance the growing current account deficit. Poland would have to resort to portfolio investments, making it more susceptible to volatility of financial markets, possibly leading to higher inflation and slower economic growth. The OECD considers Poland's current fiscal policy decidedly too lax. On a more positive note, the organization forecasts quick growth for Polish exports. (Rzeczpospolita, p. B1)