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Eurostat reports reveal a promising development in Poland’s public finances during the first quarter of 2023. The deficit of the public finance sector amounted to 2.0% of GDP, signifying a significant improvement. According to the ESA2010 methodology, Poland’s public debt as a percentage of GDP also decreased to 48.1%, positioning it as one of the lower debt-to-GDP ratios within the EU.
Declining Deficit and Public Debt
Comparing to the previous quarter, both deficit and public debt have shown a favorable decline. In Q4 2022, the public finance deficit was at 8.4% of GDP, which saw a considerable reduction in Q1 2023. Similarly, the public debt, which stood at 49.1% at the end of Q4 2022, experienced a decrease to 48.1% during Q1 2023.
Poland’s Favorable Position in the EU
The data provided by Eurostat indicates that Poland’s public debt-to-GDP ratio is relatively low compared to other EU countries. The EU average for public debt is 83.7%, while the eurozone’s average is even higher at 91.3%. This places Poland in a favorable fiscal position compared to its European counterparts.
Poland’s economy exhibits encouraging signs as the deficit and public debt demonstrate a downward trend in the first quarter of 2023. Maintaining this positive trajectory could bode well for the country’s financial stability and economic growth.