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Poland: EU, increase in wages supported the economy in 2019

Positive impact on employment rate. Spending of EU funds is weak

08 May, 10:52
(ANSA) - BRUSSELS, MAY 8 - The increase in wages will continue to support the growth of GDP in Poland, which will continue at the rate of 4.2% in 2019, according to the EU Commission's spring economic forecasts. ''Consumption and private investment will remain the main growth engine in 2019 and 2020'', According to EU forecasts, wages will rise by around 8% both in 2019 and in 2020, with a positive impact on the unemployment rate, which should hit a new record low of 3.5%. According to the EU, Poland's fiscal policies to support household income will have a positive impact on consumption, with a solid domestic demand, but the EU Commission expects GDP to decrease by 3.6% in 2020 (from 5.1% in 2018), and this will be caused above all by global commercial dynamics, which slow down the Polish industry and exports. Expressing an overall positive assessment of Polish public accounts, the EU underlined the legal system deficit and the slowness in the spending of Poland's EU funds, two factors that could negatively affect investments. (ANSA).

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