Monday, September 6, 2010

Some forecasting

Poland's public debt is on its way to become a problem. The debt-to-GDP ratio is now at about 50%, is rising quickly, and many economists worry that it will soon exceed a threshold of 55%, at which the government and parliament are required by law to enact a budget that would lower this ratio (which, in practice, would mean very large tax hikes and/or spending cuts). Fortunately, according to a forecast recently published by the government, by 2012 the debt-to-GDP ratio will cease rising and stabilize at 54.99%.

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