The growth of the Polish economy will slow down to 0.4% in 2020 from an estimated 4.1%. - The World Bank economists forecast in a report published on Thursday. In 2021 our economy may accelerate to around 2% of GDP, they estimate.
Poland is part of European and global supply chains, and the coming months will bring a strong slowdown to levels that are now difficult to accurately predict - indicated Marcus Heinz.
According to the latest analyses, referring to the state at the end of March, the growth of the Polish economy will slow down to 0.4% in 2020 from 4.1%, the result estimated for 2019.
In 2021, the economy may accelerate to the level of around 2%. - According to the World Bank report.
As Marcus Heinz, the World Bank representative for Poland and the Baltic countries, quoted in his communication on Thursday, stressed, we are facing an unprecedented crisis on a global scale and all regions of the world are strongly affected by it.
"Poland is part of European and global supply chains, and the coming months will bring a strong slowdown to levels that are now difficult to forecast accurately". - he indicated.
According to the World Bank, the Polish economy, which has been accelerated in recent years, will slow down sharply due to the effects of the coronavirus pandemic, which will hit mainly the weakest companies and employees - according to the bank's report published on Thursday on the impact of the epidemic on developing economies in Europe and Central Asia.
According to the experts, it is important that the state aid is large, fast and accurate. "We need investment in health care, as well as support for companies and workers, including those most vulnerable to the consequences of this crisis," pointed out Heinz. He added that aid for companies should be burdened with "minimal administration on the principle: help now, verify later".
The pace of development of the economy, as emphasized by the bank's economists, will "largely depend on the support tools used by the state and how companies and households behave. They caution that due to the uncertainty about the further development of the pandemic, any macroeconomic forecasts are nowadays subject to a high risk of error.
According to the latest analyses, referring to the state at the end of March, the growth of the Polish economy will slow down to 0.4% in 2020 from 4.1%, i.e. the result estimated for 2019. "In 2021, the economy may accelerate to around 2%. - According to the report.
The World Bank presented in the report two scenarios of development of the European and Central Asia region. The baseline scenario assumes that the region's gross domestic product (GDP) will shrink by 2.8% in 2020 and the pessimistic scenario by 4.4%. "The region's GDP will then return to growth thanks to increased national economic interventions, slow growth of raw material prices and improved international trade". - indicated.
The coronavirus epidemic, as experts pointed out, broke out at a difficult time for the emerging economies of Europe and Central Asia. "In 2019, economic growth has already slowed down, and since February this year the region has been facing a health and pandemic-related economic crisis". - it's written.
The WB, as reported, is preparing a package worth $160 billion, which is to support the weakest, help companies and stimulate the recovery of economies within 15 months.
The World Bank is an international financial institution whose mission is to reduce poverty and promote sustainable development. It provides concessional loans that support various types of investments and reforms in areas such as infrastructure and the financial sector. Poland has been a member of the World Bank since 1986. In total, the Bank has granted loans to Poland worth USD 16 billion.