Poland to make cuts amid gloomy economic forecasts

Poland to make cuts amid gloomy economic forecasts Warsaw - Polish Prime Minister Donald Tusk was to meet with his cabinet ministers Friday on slashing government spending, amid forecasts of slowing economic growth and rising inflation.

Tusk asked ministries for a plan that would cut spending by some 17 billion zloty (5.15 billion dollars,) the Polish Press Agency PAP reported, and would amount to a 10 per cent cut in expenses for the first half of 2009.

The talks come as Polish officials admit the country is not immune to the financial crisis. They had previously assured that Poland would be safe thanks to a strong banking system.

But Tusk on Tuesday said the country's GDP could grow by as little as 1.7 per cent in 2009, while inflation could be up 1.9 per cent, PAP reported.

Expenses like investments, vehicle purchases and building renovations would all be looked over to make cuts and compensate for what could be lower revenues in 2009, Tusk said. (dpa)

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