2023-04-27 12:50:35
The deficit of Polish public finances in 2023 is likely to increase to 4.7 percent of gross domestic product (GDP) from the level of 3.7 percent of GDP last year. The Polish Ministry of Finance stated this in an updated forecast on Thursday. In the next period, he expects a gradual reduction of the deficit, which should reach the level of 2.9 percent of GDP in 2025 or 2026.
The main reason for the growth of the deficit and the total public debt, which reached 49.1 percent of GDP last year, were measures to mitigate the effects of high energy prices, the ministry said. It is assumed that their effects will be felt by the budgets of the central government and municipalities in 2023 as well.
Overall, the Polish economy was able to handle the shock caused by the war in Ukraine and high inflation last year and grew by 5.1 percent. In the current year, the ministry expects a significant slowdown in the rate of economic growth to 0.9 percent.
Don’t overlook
The current account deficit of Poland’s balance of payments increased sharply
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