Polish government approves next year's budget guidelines

The Polish government on Tuesday approved guidelines for next year's budget, envisaging a 4-percent GDP growth and inflation at 1.8 percent, the Government Information Centre (CIR) reported.

The Council of Ministers approved the guidelines for next year's budget prepared by the finance minister, CIR added.

CIR also wrote that next year's government policy will be directed at rebuilding Poland's economic potential, and underlined that prospects of the Polish economy depended on the development of the global crisis caused by the coronavirus pandemic.

According to Finance Ministry, this year's GDP will fall by 4.6 percent but grow by 4 percent in 2021, with domestic demand being the main factor of next year's growth. Inflation is to read 3.3 percent at the end of 2020 and 1.8 percent in 2021.

Average employment in the national economy will drop by 2.4 percent in 2020, and by 0.7 percent in 2021.

The unemployment rate is expected to grow from 5.2 percent at the end of 2019 to 8.0 percent at the end of 2020. In 2021, it will drop to 7.5 percent.

Private consumption will go down in real terms by 4.2 percent in 2020, but will grow by 4.4 percent in 2021.

Poland's exports are expected to fall in real terms by 9.3 percent in 2020 and to increase by 6.9 percent in 2021. Imports will drop by 10.2 percent this year, and grow by 7.3 percent next year.

The minimum wage in 2021 is planned to amount to PLN 2,800 (EUR 622), up by 7.7 percent year on year. Hourly pay is to stand at PLN 18.30 (EUR 4.1).

The government will present the assumptions for the draft 2021 budget to the Social Dialogue Council on July 31.