09 February 2011

POLAND: Growing Debt Threatens Eastern Europe's Economic Poster Child.

G.POST/ Jan Cienski / Slow Load on 2 Screen Read /

   Poland's rising public debt of about 55 %, combined with a stubbornly high budget deficit even as it continues to borrow money... is threatening its economy.
   Yet the economy is expected to grow by about 4 percent in 2011.
     But a prominent economist warns that Poland must narrow its budget deficit and raise interest rates at the same time or trigger a loss of investor confidence that could bring about a “drastic” weakening of the zloty and a surge in inflation.
   However, Poland is proceeding cautiously on economic reforms such as raising the retirement age to 67 from 65 and equalizing the retirement age of men and women.