So far, Poland has maintained strong economic growth for several years. Thanks to that, the situation of public finances has also improved. The crisis we will face in the coming months and the need to increase spending to support the locked down economy will deteriorate the condition of the budget.
The falling oil prices combined with the extra-budgetary spending requirements needed to support ailing businesses means that Russia’s National Welfare Fund will most likely be empty much earlier than previously thought. Moscow is now looking for alternative ways of financing its crisis remedies.
The global financial crisis took economists, financiers and politicians by surprise, even though it should not have. The levels of household, government and corporate debt were soaring. But we knew how to alleviate the crisis. The current pandemic-related crisis is different.
Most of the Southeast European member states show decrease in the government debt as a share of GDP, as shown in a report published by the Eurostat. The EU debt as a share of GDP declined slightly in the Q3’19 q/q. In the SEE only Croatia and Greece noted decline in public debt.
After a few relatively good years, Ukraine is again getting into difficulties with the balance of payments. Economists believe that the deficit is a worrying sign indicating the beginning of a cycle of capital outflow.