(ANSA) - BRUSSELS - Poland's economy is expected to continue growing strongly, driven by domestic demand, according to the Spring EU Commission forecast. The outlook remains favourable with real GDP growth projected to reach 3.7% in 2016 and then 3.6% in 2017, after Poland's real GDP grew by 3.6% in 2015, its fastest annual pace since 2011.

Private consumption should benefit from a fiscal stimulus and the dynamic labour market while price pressures are set to remain subdued. Following a sizeable fall in 2015, the general government deficit is projected to increase in 2016 and 2017.

The 7.5% unemployment in 2015 should fall to 6.8% in 2016 and to 6.3% in 2017. Polish exports are expected to continue growing robustly as contained labour costs and the zloty's exchange rate support cost-competitiveness. In addition, external demand is projected to gradually strengthen. At the same time, accelerating domestic demand is set to fuel imports so that the growth contribution of net exports is forecast to turn slightly negative in 2016 and 2017. (ANSA)