WARSAW: The World Bank has maintained a forecast that the Polish economy will grow 3.7 percent this year, while revising its global forecast down to 2.4 percent from the 2.9 percent it projected in January. In its latest Global Economic Prospects report, the World Bank predicted Polish GDP would grow 3.5 percent in both 2017 and 2018. Both forecasts are 0.4 percentage points down on the bank’s January projection.
“Economic activity in Poland will be helped by additional public spending in the form of monthly support payments for parents with two or more children,” the bank said, referring to a flagship government programme launched in March that aims to raise the country’s birth rate.
The new handouts were a key pledge by Poland’s conservative Law and Justice (PiS) party ahead of its victory in October general elections. Referring to its decision to revise its global growth forecast downwards, the World Bank said: “The move is due to sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade, and diminishing capital flows.”
