World Bank revises economic forecast for Poland downward

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 has kept 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 increase of the tax-free amount, the reduction of the retirement age, and the return of the VAT rate to 22 percent from the current 23 percent," the World Bank stated in its latest "ECA Economic Update" report.