Good news for the economy. Fitch affirms Poland’s rating

The Fitch Ratings agency informed about maintaining Poland’s rating at the current level of A-. His outlook was also kept at a stable level. Analysts expected such a move.

“Poland’s A-rating reflects its diversified economy with a history of stable growth and economic policy framework with EU membership. The counterweight is a lower level of GDP per capita and a relatively high (though decreasing) net foreign debt compared to other countries in the A- comparative group, “Fitch Ratings informed.

See also: Analysts expect Poland’s rating to be maintained

Coronavirus the main threat

The main threats include the possibility of the economies freezing again. The data clearly shows that spring lockdowns around the world had a negative impact on Polish GDP, which decreased by 8.9% in Q2. compared to the first quarter.

On the other hand, this decline was the smallest among the member states of the Visegrad Group, as indicated by the Ministry of Finance.

GDP will grow again

“Fitch predicts that throughout 2020, GDP will decline by 3.5%, but in 2021 Poland will return to the growth path with GDP dynamics of 4.5% and 3.3% in 2022, which will be favored by investment growth and private consumption. The agency forecasts that the general government deficit in relation to PKB will amount to 8.2% in 2020, 5.4% in 2021 and 4% in 2022, which remains below the national official estimate (respectively: 12% in 2020 and 6% in 2021) ” – is the statement of the Ministry of Finance on the decision of the Fitch agency.

Among the three largest rating agencies, Moody’s scores the highest for Poland’s creditworthiness – at the “A2” level. Poland’s rating according to Fitch and S&P is “A-“, one level lower than Moody’s. All ratings are stable. S&P will end the autumn round of reviews of Poland’s rating by major agencies

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