It won’t be an easy year. The war in Ukraine is probably not over yet, although we all want it to be. Just as we hope that we will no longer have to deal with so many external shocks. However, no one can promise us this, and I do not promise this to anyone,” Finance Minister Magdalena Rzeczkowska said in an interview with Business Insider Polska.
Magdalena Rzeczkowska, who took over as finance minister in April this year (she replaced Tadeusz Kosciński, who was sacked in the post after the Polish order-related mess), gave an interview to Business Insider Polska. The conversation is mainly about what awaits us next year. Asked if 2023 will be a harder year for the finance minister than this year, Žechkovska says:
“The year will not be easy. The war in Ukraine is probably not over yet, although we all want it to be. Just as we hope that we will no longer have to deal with so many external shocks. But no one can promise us this, and I cannot promise this to anyone.
“We are perceived as a safe country for investment”
Rzeczkowska emphasizes that Poland has “good ratings from investors, including foreign ones, who are interested in our treasury bonds.” – We are perceived as a safe country for investment. The only thing that encourages investors to buy Polish bonds is the currently attractive yield level. Investors look not only at the current situation, but also pay special attention to medium-term and long-term prospects, which they evaluate positively - stressed the head of the Ministry of Finance.
– Rating agencies maintain our credit ratings with a stable outlook, we are a member of NATO and the EU. For investors, it is also a guarantee of the financial security of our country. Therefore, the risks are limited to some extent, and foreign capital looks favorably on us. 2023 will be a difficult year, we still have many challenges to face - he adds.
When asked if we are facing a serious economic downturn, Žechkovska recalls that the budget forecasts for inflation (9.8 percent) and GDP (1.7 percent) were made this summer. “At the moment, these forecasts may seem somewhat optimistic. Current market forecasts point to inflation over 13% and growth around 1%. However, they show the current state of knowledge, and we do not know if we will be closer to the forecasts of the Ministry of Finance made a few months ago, or to the forecasts created on an ongoing basis by market analysts. Surely there is already data that gives some hope for the next year - the finance minister says.
Record inflation. Will spring bring a breakthrough?
When asked if she was referring to disinflation, Rzeczkowska stressed that this is not “wishful thinking” because “there are grounds to predict that inflationary processes will soon become softer.” – In world markets, we are seeing a decrease in food prices and a decrease or stabilization in prices for most types of raw materials. Over time, this will lead to much lower price dynamics in Poland. The situation will certainly be mitigated by the introduction of maximum prices at the EU level for gas or crude oil. This should stabilize and calm the markets. Spring should bring a breakthrough and start a downward trend when it comes to inflation - Szeczkowska predicts.
Election year
2023 will be an election year due to parliamentary elections scheduled for autumn. When asked whether she will keep the budget with an iron fist, the head of the Ministry of Finance replies: – We will definitely conduct business in the Ministry of Finance rationally and responsibly.
Source: Wprost
