Online features
- Home page
- Products
- Technology
- Environment
- Profiles
- Corporate
- Investment
- Events
- People
- Countries
- Agenda
- Analysis
- Blog
Latest magazine
Countries
Polish budget assumes growth of 4.8% and inflation at 2.9%
The cabinet passed the 2009 budget draft stipulating for GDP growth of 4.8% vs. 5.0% envisaged in the June budget guidelines, the government press office said. The average annual inflation forecast has been retained at 2.9%.This decision confirms unofficial media reports on the planned GDP growth forecast’s reduction. Last week, deputy finance minister Katarzyna Zajdel-Kurowska hinted that the ministry was pondering a revision of the economic growth (within the range of 4.6-5.0%), while the inflation estimates could be hiked, but only for 2008 (from the level of 4.1%).
“Slowing down the pace of GDP growth to 4.8% results from lower dynamics of investments and consumption. Due to weaker domestic demand, imports’ contribution would also drop to minus 3.4%, while exports’ contribution to GDP growth will amount to 2.5% in 2009. According to plans, private consumption will rise by around 5.1%,” the release reads.
Total consumption is expected to rise by 4.5%. The draft also stipulates for employment rise of 2.0%, real wages growth of 3.6% as well as real growth of investments of 10.0%.
After Q2/2008 GDP growth proved higher than expected (at 5.8% and 5.5%, respectively), the finance ministry upheld the budgetary forecast under which the economy would expand by 5.5% in the whole of 2008 compared to last year’s 6.6%.
