Fitch upgrades Poland’s GDP forecast

Ratings agency Fitch has upgraded its GDP forecast for Poland for this year to 4 percent from the previous 3.3 percent.

“Consumption is rising thanks to a strong labor market. Expenditure of the EU funds in the second half of 2017, also seen in a significant increase in construction output in August, will stimulate investment. Due to the fact that fast-growing domestic demand stimulates the import,” Fitch said explaining its decision.

For 2018 and 2019, the agency’s forecast remains unchanged at 3.2 percent.

The main risks include weaker external demand and high uncertainty of the economic policy which could affect investments. “Fitch does not expect the recent tensions between the EU and Poland to affect the Polish economy in the short term,” it added.

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