Poland among EU countries with lowest deficit - finance ministry

Poland is among the countries with the lowest deficit in the EU, the chief economist of the Ministry of Finance has said commenting the latest data of the EU's statistical office Eurostat.

Eurostat said on Thursday that Poland had recorded a general government deficit (not seasonally adjusted) of 2.9 percent of GDP in the third quarter of 2020 against 16.3 percent of GDP in the second quarter. At the same time, the country's seasonally adjusted general government deficit fell to 4.6 percent of GDP in the third quarter from 17.1 percent of GDP in the second quarter of last year.

The chief economist of Poland's finance ministry, Łukasz Czernicki, said that the result places Poland among the countries with the lowest deficit in the EU, noting that the EU average for the third quarter of last year was 5.6 percent in relation to the size of the economy.

According to him, lower spending from the Covid-19 Countermeasure Fund and the state development fund PFR's Financial Shield, as well as the strong economic rebound, have improved the fiscal situation.

"This level of deficit was the result of unprecedented support for the economy during the first wave of the pandemic," Czernicki told PAP.

"The reduction in expenditure under the COVID-19 Countermeasure Fund and the PFR Financial Shield as well as the strong economic recovery translated into a significant improvement in the fiscal situation in Poland," he added.