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GG deficit proves strength of economic rebound – FinMin

The latest data on the general government deficit in 2021 indicate that Poland’s economy is recovering from the Covid pandemic, according to the chief economist of the Ministry of Finance.

The Central Statistical Office (GUS) said in a flash estimate on Friday that Poland’s 2021 general government deficit hit 1.8 percent of GDP against a revised 6.9-percent reading for 2020.

Commenting on the data, Lukasz Czernicki told PAP that although “there are many challenges ahead of us for the next year, the result of 1.8 percent of GDP for the general government deficit is good and shows the strength of the Polish economic rebound after the pandemic.”

He also said that the 2021 deficit was much lower than the middle of last year’s forecasts of 5.3 percent of GDP, adding that, back then, there were completely different macroeconomic assumptions, with lower inflation.

Czernicki described the general government deficit for 2021 as “satisfactory,” and significantly below the reference value of 3 percent included in the EU’s Maastricht criteria.

“This is a good starting point for the challenges we will face in the coming years,” he said.

Among the challenges facing the Polish economy, he mentioned the likely economic slowdown due to Russia’s war on Ukraine, the related fiscal expenses, and the increase in military spending in 2023 to 3 percent of GDP as well as “significant tax cuts.”

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