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English Section

Coronavirus will not cause recession in Poland: central bank chief

19.03.2020 09:05
Despite the disruption caused by a coronavirus epidemic, the Polish economy will not fall into a recession but grow by about 2 percent this year, the country’s central bank chief has said.
Polish central bank chief Adam Glapiński. Photo: PAPLeszek Szymański
Polish central bank chief Adam Glapiński. Photo: PAP/Leszek SzymańskiPhoto: PAP/Leszek Szymański

The "most pessimistic models" drawn up by the National Bank of Poland suggest the economy will expand by no less than 1.6 percent in 2020, Adam Glapiński said on Wednesday.

This is expected to be followed by a sharp spike in GDP growth in 2021, he estimated.

"Once the disease is brought under control or subsides, there will be a strong consumer and investment rebound,” Glapiński told reporters, adding that “the economy will surge to quickly make up for its losses."

Glapiński also said that the Polish banking system was stable and “well stocked with capital” amid the coronavirus outbreak.

He added that Poland was “perfectly prepared” to deal with the crisis.

Poland’s authorities on Wednesday unveiled a PLN 212 billion (EUR 47 billion, USD 52 billion) stimulus package to shore up the economy and shield the country from the impact of an intensifying coronavirus outbreak.

The Polish central bank on Tuesday moved to cut its key interest rates in a bid to counteract the impact of the virus.

The economy grew 3.2 percent in the final quarter of last year and expanded by 4 percent in 2019 as a whole, according to the state-run Central Statistical Office.


Source: TVP Info, PAP