Poland's GDP growth likely to reach 5 pct this year says MinFin

The finance minister has said that Poland's economy will could expand by as much 5 percent this year, and added that the state budget has secured funds to protect the economy against another coronavirus wave.

The finance ministry had earlier spoken about 3.8 percent GDP growth in 2021 and a 4.3 percent increase in 2022, but Tadeusz Koscinski told PAP Biznes that this year’s figure could be higher.

“Economic growth this year may be close to 5 percent,” he said. “I am cautiously optimistic.”

The minister added that the implementation of the budget after June "will likely be similar to the May figure when a PLN 9.4 billion (EUR 2.09 billion) surplus was recorded."

Poland plans an PLN 82.3 billion (EUR 18.18 billion) budget deficit in 2021.

Koscinski said that the third Covid-19 wave was coming to an end, but added he could not be sure that this was the end of the pandemic.

"Let us remember that 50 percent of the Polish population have not yet been vaccinated. We must keep financial buffers ready all the time,” he said. “We do not have a 100-percent guarantee that there will not be another (coronavirus) wave."

Poland had secured funds for another coronavirus wave, he said, adding that 73 percent of Poland's borrowing needs had already been financed, and that Poland had PLN 125.8 billion (EUR 28 billion) on its budget accounts.