According to Societe Generale, Poland's high fiscal deficit and quickly growing public debt could continue to put pressure on the zloty. The next major test for investor appetite is expected to be the draft 2027 budget. According to the bank, additional fiscal slippage may cause the 10-year POLGB yield to rise above 6% and the EUR/PLN ratio to return to 4.35. The budgetary dangers are highlighted by Fitch's decision to keep Poland's A-rating with a negative outlook, despite the nation's robust, diverse, and sizable economy and the assistance that comes with EU membership.
Due to budgetary concerns, there is a chance that EUR/PLN will rise again.
"Public debt is expected to continue rising quickly, and the country's budget deficit, now at 7.3% of GDP, is predicted to keep elevated."
"In Poland, the government intends to maintain a broadly neutral budget by decreasing income taxes on middle-class individuals and increasing taxes on major corporations starting in 2027."
"When PM Tusk's government releases the draft 2027 budget on Friday, interest in zloty assets may be put to the test."
"On Friday, Fitch kept Poland's rating at A-, with a negative outlook."
"The agency cited a policy framework underpinned by EU membership and a broad, diverse, and resilient economy."
"Fiscal slippage might push the 10-year POLGB yield above 6% and EUR/PLN back near the resistance level of 4.35."
Due to budgetary concerns, there is a chance that EUR/PLN will rise again.
"Public debt is expected to continue rising quickly, and the country's budget deficit, now at 7.3% of GDP, is predicted to keep elevated."
"In Poland, the government intends to maintain a broadly neutral budget by decreasing income taxes on middle-class individuals and increasing taxes on major corporations starting in 2027."
"When PM Tusk's government releases the draft 2027 budget on Friday, interest in zloty assets may be put to the test."
"On Friday, Fitch kept Poland's rating at A-, with a negative outlook."
"The agency cited a policy framework underpinned by EU membership and a broad, diverse, and resilient economy."
"Fiscal slippage might push the 10-year POLGB yield above 6% and EUR/PLN back near the resistance level of 4.35."
