OECD upholds Poland's 2011 GDP growth forecasts at 3.9%
2011-05-26 11:08:52
Poland's economic growth will likely inch up to 3.9% in 2011, but will return to last year's level of 3.8% in 2012, the Organisation for Economic Co-operation and Development (OECD) has said in the spring edition of its Economic Outlook , upholding its 2011 forecast.
It attributes Poland's growth to strong public investment in 2011, partly related to EU-financed infrastructure projects and the 2012 football championships, a recovery in business investment in 2012 and robust private consumption.
The OECD forecasts Poland's general government deficit to decrease to 5.8% of GDP in 2011 and 3.7% in 2012 from 7.9% of GDP in 2010. The Polish government wants to slash the country's general government deficit to 2.9% of GDP in 2012.
The organisation also said that monetary tightening should be "continued towards a neutral stance both to tame inflation expectations and forestall second round effects from the commodity price increases, and also because strong growth will soon result in pressure on productive capacity."
OECD's forecasts for Poland
|
2010 |
2011 |
2011 |
|
| GDP - y/y % |
3.8 |
3.9 |
3.8 |
| Unemployment (% of labour force) |
9.6 |
9.4 |
8.5 |
| Fiscal deficit (% GDP) |
7.9 |
5.8 |
3.7 |
| Average annual inflation (CPI) |
2.6 |
4.2 |
3.1 |
| C/A deficit (% of GDP) |
3.4 |
4.5 |
4.8 |