21:37 13 January 2020
Economists predict weakening of CEE currencies
The złoty exchange rate is likely to weaken against the euro by 1.6% in 2020 due to rising inflation and slower economic growth, according to economists who took part in the survey conducted by Reuters on the potential changes in exchange rates of Central and Eastern European countries in 2020.
“The development of the Polish economy will most likely begin to slow down. We also anticipate that the Polish central bank will not raise interest rates despite inflation, which should rise above 3.5 percent per year, " Liam Peach, an economist at the British research company Capital Economics, said.
Peach added that Polish exporters are likely to eventually suffer also from the weakening of the German economy.
Economists expect a weakening of other Central and Eastern European currencies against the euro per year: the Hungarian forint by 1.35%, the Czech crown by 0.7%, the Romanian funnel by 3% and Serbian dinar by 0.2 percent.
