OECD upgrades Polish GDP growth to 4.2 pct in 2019

The Organisation for Economic Cooperation and Development (OECD) has upgraded Poland's economic growth forecast to 4.2 percent in 2019 from 4.0 percent expected earlier.

In its May economic outlook report, the OECD has also revised upwards Poland's GDP growth forecast for 2020 to 3.5 percent from 3.3 percent.

Inflation is seen at 1.9 percent in 2019 and 3.0 percent in 2020.

According to the report, Poland's economic growth is to slow down due to the effect of an economic slowdown in Europe and a drop in the pace of growth of global trade. At the same time, authors of the report note that the rise of social transfers and the lowering of taxes will strengthen private consumption, however rising wages may in turn accelerate the pace of inflation growth.

Meanwhile, among negative factors, the OECD lists the likely decrease in the inflow of foreign workers which could result in labour shortages.

The OECD recommends Poland the tightening of its fiscal policy, forecasting a public sector deficit of 1.4 percent of the GDP in 2019, 0.6 percent higher than previously expected. The organisation also recommends equalling the retirement age for men and women.

The OECD also expects investments are to grow by 5.8 percent in 2019 and by 5.6 percent in the following year with private consumption at 4.7 percent in the present year and falling to 4.2 percent in 2020.

According to OECD experts, exports are to grow 6.3 percent in 2019 and 4.9 percent in 2020 while imports are to increase by 6.9 percent in 2019 and 6.8 percent in 2020.