19:32 15 June 2020
Polish GDP expected to shrink by 2.3% this year, rise by 4.3% in 2021
Poland's GDP will shrink this year by 2.3 percent, while next year the economy will recover by 4.3 percent, as forecast economists of Bank Gospodarstwa Krajowego (BGK). They expect the registered unemployment rate to rise to 7.3 percent at the end of 2020 and to drop to 6.4 percent at the end of 2021.
"The good state of the domestic economy at the beginning of this year and the lower share of the sectors most affected by restrictions in the GDP (e.g. tourism) will ensure a relatively smaller scale of losses of the Polish economy in relation to the countries of Western Europe. This will also be supported by: a fast and abundant fiscal package, increasing public investment and the effects of 'bringing closer' supply chains. This will be reflected in relatively mild losses in the labor market. However, the decline in GDP this year is inevitable,” the report reads.
Analysts point out that the progression of the coronavirus epidemic remains a major risk factor for forecasts.
(ISBnews)
