Ministry of Finance of the Republic of Poland

10/05/2021 | Press release | Distributed by Public on 10/04/2021 23:03

S&P report on Poland

On October 4th 2021 S&P rating agency in its report mentioned diversified economy, educated workforce, manageable levels of public and private debt, healthy banking system and relatively deep domestic capital markets that underpin Poland's rating. The post pandemic recovery of the economy in the first half of 2021 was faster than expected by S&P. That's why agency revised upward growth expectations to 5.1% in 2021. Next year, S&P expects GDP growth will accelerate to a high 5.3% owing to an additional stimulus from generous EU transfers and governmental fiscal measures framed under the "Polish Deal".

Rating prospects

According to the agency, Poland's rating could be raised if following a temporary growth shock, Poland's strong economic performance were to resume and boost its income levels without creating external imbalances. On the other hand, ratings could come under pressure if the impact of the pandemic significantly weakened Poland's economic recovery and medium-term growth prospects, also leading to the government's fiscal position deteriorating below expectations. Ratings downside could also materialize in case of much weaker EU transfers to Poland as well as the crystallization of fiscal contingent liabilities from emergency policy measures