Monday, August 23, 2021

Poland - Government Debt in relation to % of GDP
Figure 1: Government Debt to GDP from 2016 to 2020
As we can see from the Figure 1 the government dept level followed a negative trend for the first four years, from 2016 to 2019, then It suddenly skyrocketed in the year 2020. The government dept in 2016 amounted to 54.2% of GDP, thereafter it gradually decreased to 45.6% in 2019. In 2020 the recorded dept was at a peak 57.5% of the GDP. This was caused by the extensive government borrowing to fund the Covid packages aimed mostly to support Businesses and self-employed, which couldn't sell their goods and services, due to restrictions. The graph follows a cycle during which the government reduces debt with the the economic growth and increases dept during recession.

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