Fitch, one of the world’s "Big Three" credit rating agencies, on Friday cited Poland's “strong macroeconomic fundamentals, and a relatively sound policy framework, coupled with EU membership.”
The agency said that these “are balanced against lower GDP per capita and high net external debt compared with the 'A' category peers.”
According to Fitch, “Poland should be relatively resilient to the shock from the COVID-19 pandemic compared with many rating peers, owing to its diversified yet relatively closed economy, moderate tourism sector, net energy importer status, flexible exchange rate, a current account close to balance and some degree of fiscal space to accommodate expansionary fiscal measures.”
Fitch said it expected the pandemic to “have a significant negative impact on Poland's real GDP growth in 2020,” followed by “a V-shaped recovery into 2021.”
Fitch this month lowered its forecast for Polish economic growth in 2020 to 1.8 percent from 3.3 percent as the country struggled with a coronavirus outbreak.
Meanwhile, the Moody's ratings agency in mid-March kept Poland's rating unchanged at "A2" with a stable outlook.
The lower house of Poland’s parliament on Saturday approved a multibillion relief package proposed by the government in an effort to shield the nation from the impact of the coronavirus.
(gs/pk)
Source: PAP, fitchratings.com