Poland's Economic Growth Expected to Surpass 6% in 2007

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Poland's economic growth will reach 6. 1% this year, the same as last year, the Polish news agency PAP reported on Monday, citing the European Commission's latest compilation of economic forecasts for member countries.

The European Commission attributed good results to a massive internal demand. However, it termed „inconsiderable” the improvement of financial situation. Unemployment in Poland will decline to 11% at the end of this year and to 9% a year later, the EC predicted in its report. Home demand will remain the main engine of growth also in 2008, but the pace of that growth will abate to 5.5%.

The EC sees investments growing 18% this year and 14% in 2008. The public finance deficit in 2006 was at 3.9% of the GDP, lower than the expected 4.2%, the EC report says, adding that this year the deficit will decline to 3.4% (the same as predicted by the Polish government last autumn). In 2008 the deficit will further fall to 3.3% of the GDP. Inflation was at 1.3% in 2006, and will rise to 2% in 2007 and 2.5% in 2008, the report says. The EC believes that the Polish central bank will keep inflation in check and it will not surpass 2.5% annually. (people.com.cn)

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