PM Tusk challenges EC forecast for Poland’s 2013 GDP growth
February 25, 2013
Prime Minister Donald Tusk
Poland's economy can beat the 1.2% 2013 GDP growth forecast presented by the European Commission, PM Donald Tusk told reporters on Friday.
"I believe it will be higher," Tusk said of the Commission's GDP growth forecast of 2013 at 1.2% published earlier on Friday, which he called "moderate."
Against the background of the euro zone and the whole of EU, Poland "is doing better than others," Tusk said adding that H2 growth is expected to be much better than in H1.
The optimistic element of the Commission's forecasts is its outlook on Poland's general government deficit, according to the PM.
"The European Commission believes that despite weaker growth the deficit will be nearing 3% of GDP," he said adding that instability in the EU was not expected to translate to instability in Poland.
Poland is expected to record an economic growth of 1.2% y/y in 2013 and accelerate to 2.2% in 2014, while on the fiscal front the country should be able to reduce its general government deficit to 3.4% of GDP this year and to 3.3% in 2014, the European Commission said in its winter forecast, revising downwards the prior projections.
Slowdown in 2013 will result from weak outlook of Poland's main trading partners, which "is expected to hamper domestic confidence and worsen the situation of exporters, resulting in constrained domestic demand growth in 2013," the Commission forecasts. "Some rebound in domestic demand is projected only towards the end of the year."