Fitch affirms Poland A- rating, outlook stable

Rating agency Fitch has decided to keep Poland’s A- rating and kept stable outlook unchanged. “Poland’s ‘A-‘ ratings reflect its solid macro fundamentals, supported by a sound monetary framework and healthy banking sector. The ratings are constrained by a weak level of GDP per capita relative to the peer median and high net external debt,” the agency said.

Fitch forecasts GDP growth at 3.3 percent this year, and 3.2 percent in 2018 and 2019, and the inflation should hit the 2.5 percent threshold by the end of 2019. Potential weaker than expected external demand is the main downside risk to the outlook. Higher than expected recovery in investment is the main upside risk.

Fitch expects that higher inflation will lead to a gradual increase in the policy rate from 2018.

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