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Polish gov't initiatives 'could slow down growth': IMF

PR dla Zagranicy
Roberto Galea 17.05.2016 10:24
Initiatives by the Polish government, including lowering the retirement age, “could slow down growth and convergence”, the International Monetary Fund wrote in a report.
Photo: GlowimagesPhoto: Glowimages

The downside risks to the Polish outlook have intensified, IMF wrote.

“External risks include a marked slowdown in emerging markets, accompanied by financial market volatility, and a protracted growth slowdown in the euro area, which could spill over to Poland through trade and financial linkages.

“Domestically, a weakening of some institutions and policies or fiscal slippages could worsen investor sentiment and hinder economic expansion. Over the longer term, a rapidly aging population poses important challenges to potential growth and fiscal sustainability. At the same time, enduring income disparities between Poland’s prosperous west and the lagging east could undermine the quality of growth,” the Washington-DC based organisation said.

Lowering the age of retirement was a key campaign pledge by the conservative Law and Justice party, which swept to power in Poland’s October general election on a wave of spending and welfare promises.

President Andrzej Duda wants to reverse retirement reforms carried out in 2012 by the former Civic Platform (PO) government.

Duda wants the retirement age to return to 65 for men and 60 for women, down from the 67 for both sexes introduced by the PO.

The former government, led by the more economically liberal Civic Platform, had argued that raising the retirement age was inescapable as Poland is facing a demographic crisis, with the number of pensioners set to rise in proportion to people of working age. (rg)

tags: IMF
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