Fitch revises Poland's outlook to 'negative' on weakening public finances

6/9/2025 16:00

Fitch Ratings revised Poland's outlook to "negative" from "stable" on Friday, citing growing risks to public finances as the key driver.



The agency flagged wider-than-expected deficits and a lack of credible fiscal consolidation plans, warning that political hurdles could delay reforms ahead of the 2027 parliamentary elections.



It now sees government debt climbing more steeply, approaching 68% of gross domestic product by 2027.



President Karol Nawrocki's early vetoes and tax opposition reflect deepening political divides that could limit the coalition's ability to push through tough fiscal measures ahead of the 2027 elections, the agency said.



Fitch said the implementation of reforms required to maintain EU funding will remain critical to maintaining strong GDP growth amid these challenges.



Finance Minister Andrzej Domanski posted on X that the government was "acting to combine stable finances with investments and necessary security expenditures".