19.4 C
London
Saturday, May 25, 2024

Fitch agency. There is a decision on Poland’s rating

Must read

- Advertisement -


Fitch announced on Friday evening its decision to maintain Poland’s “A-” rating. It was assessed that the stable outlook of the rating reflects the solid growth prospects of the Polish economy, its high resistance to external shocks and growing macroeconomic challenges.

According to the agency, the rating is supported by stable economic growth in recent years, relatively solid macroeconomic foundations and a low public debt compared to countries with a similar rating.

According to Fitch, the stable outlook of the rating reflects the solid growth prospects of the Polish economy and its high resistance to external shocks and growing macroeconomic challenges.

Expected recovery of the economy

Fitch forecasts that economic growth will fall from the previously estimated 5.7 percent. in 2022 to 1.1 percent. in 2023 due to a slowdown in economic activity in Poland’s main trading partners and a slowdown in domestic demand. The agency predicts that the economy will recover in 2024 and will grow by 2.6 percent. The agency recognized that Poland’s successful efforts to diversify its energy supply sources mean that the risk of gas or coal supply disruptions this winter and next is relatively low.

- Advertisement -

The rating may drop with further weakening of relations with the European Union

According to Fitch, the factors that may contribute to the upgrade of the rating in the case of public finances include fiscal consolidation in the medium term, which will lead to a significant reduction in the debt-to-debt ratio. GDP and evidence that the prospects for sustainable and higher GDP growth lead to faster convergence of incomes close to those of countries with an “A” rating, supported by measures that do not lead to macroeconomic and external imbalances. On the other hand, a rating downgrade is possible in the event of a persistent increase in public debt caused by loosening fiscal policy, a decline in competitiveness resulting from the persistently high level of inflation and higher energy priceswhich may lead to significantly lower medium-term growth and permanent deterioration of external finances.

The rating may also be downgraded in the event of a significant deterioration in governance, potentially further weakening of relations with the European Union, and loss of credibility for macroeconomic and fiscal policies.

Read more: The legendary Polish factory closes its operations after 200 years. Barack Obama used its products

Main photo source: Shutterstock



Source link

More articles

- Advertisement -

Latest article