Moody’s strongly upgrades Poland’s GDP growth forecast

The agency said in a report published on Monday that Poland’s faster-than-expected economic growth and fiscal condition were “credit positive.”

The Polish economy grew 3.9 percent in the second quarter of this year, according to the country’s Central Statistical Office (GUS).

The figure confirms a flash estimate by the office earlier this month, GUS said on Thursday.

In the first quarter, Poland’s GDP grew 4.0 percent year on year.

Moody’s said in its report that Poland was likely to maintain its positive growth momentum throughout the remainder of this year.

The agency expects Polish GDP growth to be driven by solid private consumption and a slow but steady recovery in investment amid a favourable external environment and a faster inflow of funds from the European Union.

According to the Polish statistics office, investment in the country increased by 0.8 percent in the second quarter in year-on-year terms, and domestic demand rose by 5.6 percent year on year.

Faster growth and encouraging budgetary data significantly increase the chances that Poland’s budget deficit will stay well below 3 percent of GDP for a third year in a row, Moody’s added in its report.

The agency plans to review Poland's credit rating on 8 September. In May, Moody’s reaffirmed Poland's A2 rating and upgraded its outlook to stable. (gs/pk)

Source: PAP