Poland’s recovery to strengthen later this year – Moody’s

Poland’s fiscal gap will widen to 4.4 per cent of GDP in 2013 before fiscal consolidation resumes in 2014 to bring the gap to 3.8 per cent of GDP, Moody’s analyst Jaime Reusche said in a comment following announcement of Poland’s pending budget revision.

As a result, debt to GDP metrics should peak in 2013, Reusche wrote.
“If debt ratios stabilize in 2013-14 and then begin to decline, the deterioration of the government’s balance sheet will be limited and the sovereign will have managed to contain debt below the 60 per cent of GDP Maastricht level,” Reusche wrote.

Comments follow the announcement by the Polish government July 16 that the continued economic weakness had derailed the country’s 2013 budget and that Poland will allow its central budget deficit to rise by 16 billion zloty as it faces off a projected 24 billion zloty revenue shortfall, stemming from weak economic activity in the first half of the year.

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