Feb 24 β€’ 03:05 UTC πŸ‡΅πŸ‡± Poland Rzeczpospolita

GDP Up, Bonds Selling Well. Is It Time to Organize the Budget?

Poland's economic growth is expected to slow down after 2026, prompting discussions on financial consolidation during favorable conditions.

MichaΕ‚ DybuΕ‚a, the chief economist at BNP Paribas Bank Polska, has indicated that after 2026, Poland is likely to experience a slowdown in economic growth, with potential economic downturns anticipated around 2028-2029. He suggests that improving the public finances would be best achieved during times of decent economic performance, where the primary societal cost would be a slower increase in real incomes. This proactive approach is aimed at avoiding any financial turbulence that may arise in the future.

While economists do not foresee a crisis for Poland, they highlight that the country will continue to progress towards Western European standards. However, demographic factors may gradually reduce potential growth rates. The International Monetary Fund projects that from 2027 to 2031, Poland's GDP is expected to grow at a real annual rate of approximately 2.5% to 2.7%. This slowdown emphasizes the necessity for the government to start planning for public finance adjustments sooner rather than later to mitigate potential economic challenges ahead.

The commentary reflects a growing consensus among Polish economists on the importance of financial prudence. By taking advantage of the current favorable conditions and focusing on budgetary discipline, Poland can set a stable course for its economy in the years to come. Such measures could prove essential not just in maximizing growth potential now but also in ensuring resilience against future economic challenges that may be influenced by demographic changes and other global economic factors.

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