Finance minister warns of 'potentially serious risks' to Poland's economy

photo - W Kusiński/PR

“You do not need to be an expert to keep track on what is happening in western Europe,” Minister Jacek Rostowski has told journalists, adding that the expected slowing of Poland's GDP growth in 2012 and 2013 will be caused by the finance crisis in the eurozone.

The National Bank of Poland, as it increased interest rates earlier this month by a quarter of a percentage point, revised economic growth predictions downwards in May to 2.1 percent in 2013 from 2.9 percent this year.

Poland's economy grew by 4.3 percent last year.

While Poland is still a leader in economic growth in the EU, Rostowski said that he doesn't underestimate “potentially serious risks” to Poland's economy.

“The nature of the threat, however, is that we do not know exactly how serious it will be. I warn that it could be very serious. Fortunately, so far it is not as bad [for Poland] compared to the rest of Europe,” Rostowski said.

After being questioned on whether slower growth rates would mean higher taxes – to offset a decline in revenue as Poland tries to meet EU targets of reducing its budget deficit to under 3 percent of GDP – Rostowski said that he refused to rule out anything, as the position of the eurozone economy is so unstable.

“I'm not going to declare anything, as the situation is so unpredictable. The external situation in Europe is highly unstable,” Poland's finance minister said, while also reminding journalists that Poland's taxes are currently “relatively low” compared to those in other European economies. (pg)

source: fakt/wprost