Poland is facing a big crisis, says mBank

According to mBank's analysis, the Polish economy will contract by as much as 4.2% in 2020 alone. In turn, unemployment [...] https://www.pinterest.com/pin/1085437947660215829/

According to mBank's analysis, the Polish economy will contract by as much as 4.2 percent in 2020 alone. In turn, unemployment in December will reach a frightening 13 percent. So are we entering a serious crisis? Everything points to it. mBank changes its forecasts for the worse Today, mBank announced that it is changing its forecast for the Polish economy. No wonder. At the beginning of March, that is before the information about the lockdown of the Polish society, economists assumed that our GDP in 2020 would grow by 1.6%. Now, however, everything has changed. The reason is obvious: the coronavirus epidemic and the beginning of the global economic crisis. Politicians of the United Right are not even trying to hide the fact that we are facing a recession anymore. On Thursday, April 2, mBank itself published its new forecasts, according to which the Polish economy will shrink by 4.2 percent. According to experts, the worst is yet to come. This concerns the second quarter, which has now started. Then it will be better, but not much. The decline in this quarter will reach 8.4 per cent, and the second half of the year will be respectively 5.7 and 4 per cent, obviously on the downside. What may make some people happy is that inflation is expected to fall and average annual growth will reach 2.9 per cent. mBank also stresses, however, that in the coming weeks we will see one more interest rate cut. Let us recall that in mid-March, the Monetary Policy Council decided to make such a move for the first time since the middle of the decade. At that time, the rate was cut from 1.5% to 1%. However, according to mBank economists, we are facing a significant drop in consumption (10.6% in 2020) and investments (-9.4%). Unemployment If you have a job now, take care of it. The bank's forecasts for the job market are also bad. Unemployment by the end of the year may jump to as much as 13 percent. If percentages don't appeal to anyone, let's convert them into concrete numbers. This means that as many as 1.5 million people will lose their jobs. Anyway, the value may increase, because just a week ago the minister of labour Marlena Malag said that the unemployment rate could reach 9-10 percent. As you can see, non-government experts are not so "optimistic" anymore. Tags unemployment inflation crisis