World Bank: Poland's GDP to fall to 3.5% in 2017-2018

According to the World Bank, Poland's GDP in 2017-2018 is expected to decline from the previously forecasted 3.9 percent to 3.5 percent. Nevertheless, the financial institution keeps Poland's GDP growth at 3.7 percent for 2016. "The fiscal prospects for Poland after 2016 are uncertain. Our baseline scenario assumes the general government deficit increase up to 3.3 percent in 2017. However, the final result will depend on the decision of the [Polish] government regarding the increasing of the tax-free amount, reducing the retirement age and the return of the VAT rate to 22 percent from current 23 percent," the World Bank states in its latest "ECA Economic Update" report.