Polish GDP Growth to Slow to 1.2% in 2013, 12-Year Low, EU Says
Poland’s economy will expand in 2013 at its weakest pace in 12 years as domestic demand and exports are hampered by weak economic performance of its main trading partners, the European Commission said.
Gross domestic product will grow 1.2 percent this year, matching the rate in 2001 and down from 2 percent in 2012, before accelerating to 2.2 percent next year, the European Commission said in winter forecasts released today in Brussels. This year’s GDP forecast was cut from 1.8 percent in the Commission’s autumn report.
Polish companies cut output on lower orders from the euro region, which buys more than half of their exports, while the unemployment rate last month probably rose to a six-year high of 14.2 percent, limiting demand for goods among Polish consumers, according to a Labor Ministry estimate. In addition, the government is trimming state spending as it needs to reduce its deficit to 3 percent of GDP as required by the European Union.
The general government deficit will keep falling, “albeit at a slow pace due to the deteriorating macroeconomic outlook,” the Commission said in its report. It estimated last year’s shortfall at “slightly below” 3.5 percent of GDP and forecast its level at 3.4 percent in 2013 and 3.3 percent in 2014.
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