Fitch keeps Poland's rating at A-, outlook at stable
PR dla Zagranicy
International rating agency Fitch has decided to keep Poland's A- rating and stable outlook unchanged.
Photo: image4you/pixabay.com/CC0 Creative Commons
Fitch has kept Poland one notch down from the median "A" rating because of the high share of foreign currency loans in the government debt, which means the debt hinges on exchange rates.
But as the government aims to reduce foreign debt, and as the GDP continues to grow, Poland could achieve an A rating in the future.
Fitch forecast GDP growth of 3.3 percent in 2017, up from 2.7 in 2016, adding that people are benefitting from record low unemployment and monthly government handouts under the government's 500+ programme of family benefits.
The agency said that the inflation rate of 1.5 percent y/y was lower than the central bank's target of 2.5 percent, but that wages and prices would rise as a result of low unemployment.