The Report

In the coming two years Poland's economy will be among the fastest developing in the European Union, according to projections presented yesterday by the European Commission. This year national revenue is forecast to increase by 5.8%, next year by 4.9% and in 2006 by 4.5%. In the spring analysts were less optimistic: 4.6% growth in 2004 and 4.8% in 2005 and 2006. According to the report's authors the stronger economic development will help balance the budget deficit, which should decrease to 3.1% in 2006. Inflation and unemployment are expected to decrease considerably in 2005. The projections for old EU members are much less favorable. Up to five countries in the Euro zone will not be able to reduce their budget deficit below the limits set by the Maastricht treaty.