Polish economy may see 5 pct growth next year - official

The head of Poland’s state development fund has said that the country could see GDP growth hit 5 percent next year, as the country bounces back from the economic shock of the pandemic.

Pawel Borys told the newspaper Rzeczpospolita that consumption, owing to the good financial situation of households, and the stability of the labour market and exports will drive growth.

"In economic terms, 2021 promises to be much better than 2020," he said. "We can count on GDP growth of around 5 percent."

He added that the level of public investments should increase from the middle of the year, and that will be followed by growth in private investment.

The forecasts, Borys said, depend on the pandemic subsiding in the second half of the year, the absence of secondary economic shocks in Europe and the stability of the banking sector.

"At the moment, the scale of state intervention reduces the risk of such shocks and it is important that the withdrawal of this aid is related to the economic recovery," he said.

Borys noted that the industries most affected by the second wave of the pandemic account for no more than 3-5 percent of total employment in Poland.

"If the economy develops dynamically in the second and third quarter of next year, it will create jobs, which will allow people who lost them during the pandemic to find employment," he said. "So if the unemployment rate increases, then it should not be significant and rather temporary."

A successful vaccination programme might even result, Borys added, in “double-digit” growth in investment around the end of next year.