Poland’s economy will expand by 4.2 percent this year, a solid growth rate fuelled by private consumption and investment, the World Bank has said in a new report.

The bank said it expected Poland’s GDP to grow 3.7 percent in 2019 and 3.5 percent in 2020.

It listed labour force shortages, large social spending and demographics among the key challenges for the Polish economy.

Poland's economic #growth in 2018 projected to reach 4.2%. Solid growth to be fueled by private #consumption and #investments. Looking ahead, labor force shortages, large social spending & demographics are the key challenges. pic.twitter.com/GMFIY6VmVt — World Bank Poland (@WorldBankPoland) April 27, 2018

The World Bank in January upgraded Poland's 2018 GDP growth forecast to 4 percent from a previous projection of 3.6 percent.

The bank said at the time that the upgrade reflected stronger-than-expected growth in the eurozone, which supported Poland’s exports. It also noted that unemployment in Poland was at a record low and that rising wages were fuelling consumption.

Earlier this month the International Monetary Fund revised upward its forecast for Poland’s economic growth this year and next.

In its latest World Economic Outlook report, the IMF said it expected Polish GDP to grow 4.1 percent in 2018 and 3.5 percent in 2019.

(gs)

Source: PAP