Thursday, December 15, 2016

The economy is in the worst condition of three years. But it would be better – says the Ministry of Finance – Gazeta.pl

According to the newspaper, it follows that the Ministry of Finance is preparing for the option in which GDP in the fourth quarter will grow by only 1.8 percent. Is very small. As can be seen, the economic slowdown that began in the middle of the year, instead of having to be temporary, increases.

Log this is mainly due to a decline in investment. Recall that these decline from the beginning of the year. In the first quarter, capital expenditures decreased 2.2 percent, the second, about 5.0%, and in the third to 7.7 percent.

the Publication stresses that it may be a temporary slowdown. In the first quarter of next year the economy will start working again. To help in this program is the “Family 500 plus” he gave them a consumption, and rapid withdrawal of funds from the EU funds.

Read more: labour Market in Europe is breaking records, but in Poland slowed sharply.

something else in the newspaper that in the diet

the Views of the Ministry of Finance, which wrote “Yurydychna Gazeta” argue with the fact that MPs heard last week in Parliament.

There, in response to the request poselską, Ministry of Development (not Finance, the newspaper writes, but, in the end, as we know, they all have the same Minister) wrote that our economy is at the end of this year, but will accelerate – compared to the third quarter.

the Ministry of economic development, the growth rate in the last quarter of 2016. should slightly accelerate, mainly as a result of the accelerating pace of personal consumption. Will gradually revive investment, which is the rate of decline should slow down in the last quarter of 2016. – he believed in the first half of December, the resort development.

Blame local authorities?

Deputies also learned where all the braking, mainly according to one of the two agencies, which is headed by Matthew Morawiecki is a result of the slowdown in investment, including delays in the implementation of projects with the new financial perspective.

- this is Confirmed by data relating to capital expenditure, in particular expenditure in the public sector, mainly local government. Authorities, refraining from investment in the local elections calendar. Investments in this sector should therefore start at the turn of 2017-18 – written resort development.

And it is already possible to argue. First, what will sound, on the contrary, kuriozalnie, the same Ministry of Development at the turn of may and June have asked the local authorities to stop from placing it tenders for projects financed from the EU funds for 2014-20 the years before the entry into force of the story of the Law of public procurement. This came into force on 28 July. How has it affected investment, we do not know.

second, unfortunately, the investments reduce not only the local authorities. The company also. – The latest data on financial results of enterprises, medium and large (50+, that is, employs at least 50 employees), show that in total, over three quarters of 2016. investments of this group of companies was lower by 5.9 billion rubles compared to the same period of 2015. It is more than 50 percent. overall reduction in cost of gross fixed assets in this period. The remaining almost 50%. legacy “worked” the company is smaller and, especially, investors, government agencies, Central and local. To what extent, it is difficult at this time to estimate – says Dr. Margaret Starczewska-Krzysztoszek from the Confederation of Leviathan.

details: In childhood we have too much. Production declines.

Public companies invest less

Draws attention to two things. Reduced investment in state-controlled companies. – This is because the sectors dominated by the share of enterprises with state capital capital expenditures declined the most – warehousing and auxiliary activities in transport production and supply in electric energy and gas, water delivery, wastewater management, ground transportation and pipeline, and is strongly joined to the construction of the weak start of EU funds for investments in infrastructure, explains Dr. Margaret Starczewska-Krzysztoszek.

And that generally it’s kind of funny, if we were to collect the bones of this attention, with negative comments about the role of foreign capital in Poland, investment fall off even more if not for a foreign company. within three quarters of 2016. their investments have grown because of 5.3 per cent., and their share in the investments of the companies, 50+ made in this period by almost 40 percent.

- thus, if not for the investment of enterprises with foreign capital, corporate capital spending 50+ zmniejszyłyby for 9. months of the current year is not at 9.1%, nearly 19 percent. – emphasizes Gennady Starczewska-Krzysztoszek.

Text taken from the blog “Subjectively about the stock market and the economy.”

See also: GDP is growing very slowly, from 3 years, but consumption is growing. What is the cause? We explain

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