Poland to have Europe's shallowest recession - PM


Poland will have the shallowest recession in Europe, Prime Minister Mateusz Morawiecki said in an interview published in Friday's edition of the Rzeczpospoplita daily, adding that GDP might fall by less than 4 pct this year.

Morawiecki also said that there would not be another economic shutdown even if there were a second wave of the coronavirus epidemic in the autumn.

Commenting that the post-COVID-19 recession would impact all countries of the world, the Polish PM credited his government's anti-crisis response and "financial shield" with mitigating the economic fallout of the pandemic and said Poland's recession would be minimal.

On World Bank forecasts that Polish GDP would shrink by 4.2 percent, Morawiecki said he believed it would be less, pointing out that state finances are in better shape than during the 2008 financial crisis. The prime minister also announced that VAT inflows "despite the difficult period of the pandemic" stood at PLN 10.65 billion (EUR 2.39 billion) in May.

He said he expected a return to economic growth in the fourth quarter of this year.

On fears of a second wave of the epidemic in the autumn, Morawiecki said the government was better prepared with a new, intelligent approach based on rapid reaction and pin-point introduction of a more stringent sanitary regime. "We're ready for it," he said.