OECD raises its GDP forecast for Poland

The Organization for Economic Cooperation and Development (OECD) has raised its 2017 GDP forecast for Poland to 4.3 percent from 3.6 percent previously forecast. For next year, the organization forecasts 3.5 percent growth, up from the previous 3.1 percent growth projection. For 2019, according to OECD, Poland’s GDP will grow by 3.2 percent. “Public spending is increasing, reflecting rising social transfers, the recent decision to lower the retirement age and an increase in investment, suggesting a need for additional revenues. Given the economy's strength and the increased spending, now is a good time for tax reform. Monetary policy is assumed to tighten gradually from early-2018 to mitigate inflationary pressures. To address demographic challenges, policies should aim at increasing labor force participation and making Poland more attractive for workers of both Polish and foreign origin,” OECD report said. The organization also forecasts that the inflation will reach 1.9 percent this year, 2 percent in 2018, and 2.7 percent the year after, while unemployment will continue to drop and will reach 4 percent in 2019.