Poland is ready for global economic slowdown - official
"Poland is ready for a global economic slowdown. Poland's GDP growth should visibly drop to below zero to make our deficit come close to the EU limit," the Deputy Finance Minister Leszek Skiba told the Dziennik Gazeta Prawna daily on Thursday.
Asked whether forecasts of a 4-percent GDP growth this year and a 3.7 percent increase next year, envisaged in the 2020 budget draft, are feasible in view of the worsening economic sentiment abroad, Skiba answered that "we have been watching what is going on in the world, especially in the euro zone, including Germany."
"At the moment, there is no strong influence of the German slowdown on the Polish economy since Poland has its own growth driving engines. But as the strength of bilateral connections is great, one should not neglect what is going on behind the Odra River," he added.
Answering a question regarding "first alarming signals, like, for instance, a production drop in June and falling exports," the official admitted that no one questioned the fact that global slowdown could influence Poland's economic condition, but stressed that economic forecasts had already envisaged a slower economic growth.
"Poland's economy has so far recorded good results. In the second quarter of 2019, the GDP grew by 0.8 percent from the first three months of this year. This is a promising result," he said, adding that one should wait for the third quarter data in order to know more.
Asked if the economic slowdown could threaten 'rigid' budget outlays, Skiba declared that it could not.
"Let's remember that in tune with the EU requirements, the deficit could not exceed 3 percent GDP," he said, stressing that next year's deficit is planned at 1.6 percent.
"In our opinion, Poland is well prepared for global economic turbulences, despite additional outlays stemming from New Five social programmes."