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Polish Briefing 12 November, 2021 11:35 am   
Editorial staff

Polish Briefing: Lukashenko threatens Poland to turn off the gas tap | Rising energy prices will affect inflation in Poland

Aleksandr-Łukaszenko-Flickr

What goes on in Poland on the 12th of November.

Lukashenko threatens Poland to turn off the gas tap

The dictator of Belarus is threatening Poland with turning off the gas tap in the face of new sanctions for the border crisis. The European Commission has announced that it will allow such threats. Alexander Lukashenka does not mention that his gas pipelines are managed by the Russian Gazprom.

– We are heating Europe, and they are still threatening us to close the border. What if we cut off the gas? That is why I would advise the Polish leadership, Lithuanians and other madmen to think first before they say something – said Alexander Lukashenko in response to the information that the European Union is preparing new sanctions against Belarus for the border crisis.

– We will not allow ourselves to be intimidated – said the spokeswoman of the European Commission Dana Spinant, referring to the threats by Alexander Lukashenka regarding gas supplies to the EU. – Gas is an essential resource and should not be used in geopolitical squabbles. People should also not be used in geopolitical quarrels, the spokeswoman said.

Rising energy prices will affect inflation in Poland

The European Commission (EC) has revised its forecast for this year’s GDP growth in Poland to 4.9 percent against a growth of 4.8 percent, expected in July 2021. The forecast for 2022 is an increase of 5.2 percent. The EC predicts that inflation in Poland will be increased in 2021 and 2022 due to rising energy prices and unit labor costs, but in 2023 it is likely to decrease.

– The Polish economy recovered significantly in the first half of 2021, reaching the pre-pandemic GDP level in the second quarter of the year. Economic growth is expected to remain robust despite soaring commodity prices, largely driven by declining household savings and dynamic investment growth. Inflation will be elevated in 2021 and 2022 due to rising energy prices and unit labor costs, but it is likely to decline in 2023, the autumn forecast reads.