The FINANCIAL — Poland will continue to tighten its public finances as it seeks to reduce the deficit to 1.2% of economic output in 2018, the government said on April 28 after approving a long-term public finance plan, according to Nasdaq.
Poland, which recorded a deficit of 3.2% in 2014, hopes its new plan will convince the European Commission to remove it from the excessive deficit procedure, the comission’s blacklist for excessive public spenders.
The government said a combination of economic growth and cuts to public expenditures will be the main drivers for reducing the deficit. Last year, central Europe’s largest economy grew by robust 3.4% and the government sees it gradually accelerating to 4% in 2018.
The country’s job market is also expected to continue improving. The jobless rate ia forecast to drop to 8.2% by the end of 2015 from 11.7% in March. The unemployment rate could fall to 6.5% by the end of 2018, the government added.
The center-right governing Civic Platform party faces a general election in October.
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