Fitch affirms Poland at 'A-' with outlook stable

Fitch Ratings has affirmed Poland's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A-' with a stable outlook. According to Fitch, Poland's ratings are supported by a diversified economy, a fairly sound macroeconomic framework anchored by EU membership, and slightly lower public debt levels than rated peers. This is balanced against lower governance indicators and income levels than the 'A' medians.

Fitch expects GDP growth to slow to only 0.7 percent in 2023, driven by weak domestic consumption. However, the slowdown in economic activity appears to be bottoming out, with stronger-than-expected momentum in private investment and export performance in the first quarter of 2023.

Combined with falling inflation over the coming months and improved external conditions, this should lead to stronger growth in the second half of 2023. The labor market will remain a supportive factor, although employment prospects will weaken compared with previous years.

(WBJ)