IMF report warns Poland’s rapid economic growth has led to increased fiscal imbalance, with public debt projected to approach 80% by 2031.
Fiscal Imbalance and Growth
A recent IMF review report highlights that Poland has maintained rapid economic growth partially at the cost of a sharp increase in fiscal imbalance. The report emphasizes that reducing the deficit should be a priority to stabilize public debt.
Public Debt Projection
According to the IMF, public debt in Poland could approach 80% by 2031. To reverse this trend, a cumulative fiscal correction of 4% of GDP is recommended.
Policy Recommendations
The IMF suggests that Poland must either increase revenues to maintain current spending levels or return to a leaner public sector with more effective and targeted expenditure.