Poland will best deal with the effects of coronavirus this year, according to the European Commission's economic forecasts.
The Polish economy will contract by 4.6 percent, and is expected to grow by 4.3 percent next year. This year's data is the best result in the Community. Inflation on the Vistula will be at the level of 2.7 percent this year.
EU experts wrote in their analysis that the Polish economy proved to be relatively resilient in the first quarter of this year, mainly due to a diversified economic structure and less dependence on crisis-hit sectors.
Private consumption dropped significantly, but investments fell moderately, as the construction sector continued to grow, and industrial production recorded only a slight decline, the analysis for Poland reads.
The decrease in private consumption is due to the fact that Poles have been collecting preventive savings and reducing expenses due to coronavirus. The drop in investment was related to disruptions in the supply chain, uncertainty in business and fewer orders in March and April.
Poor forecasts for the whole Community
According to published data, this year the Euroland's economy is expected to contract by 8.7%, while in the future GDP is expected to grow by 6.1%. In turn, the economy of the entire European Union is to contract by 8.3 percent this year and grow by 5.8 percent next year.
The biggest slump is expected in the south. In Italy, France, Spain, Greece and Croatia, this year's GDP decline will exceed 10 percent.
In the Commission's opinion a possible new wave of pandemics, high unemployment and corporate insolvency are a threat to the EU economy, as well as the failure of talks with the UK on a new cooperation agreement that should regulate mutual relations from January.