Standard & Poor's agency (S&P) expects this year to increase Polish GDP by 3.4 percent, strengthen the zloty, and point to healthy pillars of our economy, which turned out to be exceptionally resistant to the crisis, informed the Ministry of Finance referring to the S&P report.
On Monday S&P published a short report on Poland, in which it indicates, inter alia, for a diversified economy, qualified workforce, safe level of public and private debt, as well as prudent monetary policy and a healthy banking system.
"According to S&P, the negative effects of the pandemic interrupted the extended period of economic growth in Poland, and the full-year GDP fell by 2.7 percent in 2020. Nevertheless, our country's economic results once again proved more resistant to the unfavorable environment than expected. The decline in production was one of the mildest among countries with a comparable rating. This can be explained by Poland's relatively diversified and competitive export base, which is less dependent on the automotive and tourism sectors, as well as a significant stimulus from the crisis policy to mitigate the effects of the pandemic," the ministry indicated.
The ministry added that in 2021, S&P expects the economic recovery in Poland to 3.4 percent GDP (against 3.8 percent growth in the earlier forecast), which will lead to an improvement in the fiscal position. In 2022, it expects GDP growth to accelerate to 4.4 percent due to the increase in domestic demand, significant EU subsidies, and a rebound in Europe.
The press release states that the current rating of Poland is A-/A-2 for long- and short-term liabilities in foreign currency, respectively, and A/A-1 for long- and short-term liabilities in domestic currency, respectively. The rating's outlook is stable.