Bauc: the zloty is too strong
Finance Minister Jaroslaw Bauc warned that the zloty, which gained 13% against the dollar and 1.5% against the Euro since mid-October, is now too strong. Bauc said that the zloty's recent rally was an overshooting and he would not expect such exchange rate levels throughout 2001, but rather a slight weakening. In the minister's opinion, the expected fall in inflation and CA deficit will come at the expense of economic growth. Bauc believes the CPI will fall to some 7% in March, from an expected 8.7% in December. He also said that the CA deficit could have dropped below 6.5% of GDP in December from 6.8% in November. The CA gap will shrink further in 2001, but the economic growth, which slowed in Q3 to 3.3%, slowed even further in Q4. Bauc predicted that GDP growth would remain weak in the first months of 2001.
Źródło:IntelliNews Daily
