EC economic forecasts: Polish economy will shrink by 4.6 percent

According to the economic forecasts of the European Commission, this year Poland will cope best with the effects of coronavirus. This year, the Polish economy will shrink by 4.6 percent, and next year it is expected to grow by 4.3 percent.

This year’s figures are the best result in the Community. Inflation on the Vistula this year will be at 2.7 percent.

EU experts wrote in the analysis that the Polish economy proved relatively resilient in the first quarter of this year, mainly due to the diversified economic structure and less dependence on sectors affected by the crisis.

“Private consumption has fallen significantly, but investment has fallen moderately, because the construction sector has continued to grow, and industrial production has only slightly decreased,” reads an analysis of Poland.

The decline in private consumption is due to the fact that Poles have accumulated preventive savings and reduced expenses in connection with coronavirus.

The decline in investment was related to supply chain disruptions, business uncertainty and fewer orders in March and April.

The situation is expected to improve next year. According to Commission data, inflation will increase – compared to last year by 0.6 percentage point, next year it will reach 2.8 percent. Its growth is to be driven by rising food and service prices.

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