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| Anna Suszynska, deputy director of the public debt department in Poland |
Luckily for us, we introduced certain fiscal policies at just the right moment. In 2008, we lowered income tax. This came at a huge cost to the government and our budget revenue dropped. But after the crisis hit, people in Poland had more cash in hand to spend in the domestic market. The tax cuts supported private consumption and growth during what should have been a stressful time for the economy.
Government spending for public investment increased between 2009 and 2011, which supported total investment into Poland. Once the crisis hit in 2008, private investment into Poland decreased, and government spending for public investments had to increase to take its place and to keep GDP growth at a relatively high level. But as a consequence, the budget deficit rose and the currency weakened, which forced some investors out.