Borys said that he expects the budget deficit to significantly fall below 2 percent of GDP next year and the public debt to rapidly drop back down to 50 percent.
Albert Zawada/PAP

Investments should log a double-digit growth next year and be a driving force for the Polish economy, a government official said on Monday.

“I expect a double-digit growth in investments, which should mean that GDP growth should remain high all the time,” Paweł Borys, head of the state-owned Polish Development Fund (PFR) told Parkiet TV online broadcaster.

“Strong economic growth, a stable financial sector, the good condition of the labour market – these are good economic parameters that should lead us to grow at a rate of more than 4-4.5 percent in 2022 and in 2023,” Borys added.

He also said that if Eurozone countries continue to stimulate economic growth, and in his opinion they will “then monetary policy should be tightened and interest rates should gradually start rising, so that inflation does not persist.” He admitted, however, that inflation should be watched.

According to Borys, there is no risk of stagflation in Poland (inflation combined with high unemployment and an economic slowdown – PAP) as he believes the Polish economy has strong foundations.

He added that he expects the budget deficit to significantly fall below 2 percent of GDP next year and the public debt to rapidly drop back down to 50 percent.