17:45 1 December 2025
Inflation down, GDP up, driven by consumer spending and KPO
Poland’s latest economic data surprised analysts: after a sharp drop in inflation, GDP growth for Q3 was revised up to 3.8% y/y. The economy remains driven mainly by private consumption, but investment also rebounded strongly, rising 7.1% y/y thanks to public-sector spending and EU Recovery Plan inflows. Exports supported growth for the first time in more than a year, while public consumption rose 7.4% y/y.
Economists now debate whether the Monetary Policy Council should cut interest rates. Strong growth argues against easing, yet the structure of growth is not inflationary. Inflation fell to 2.4% in November – below expectations and the NBP target – indicating that rapid expansion is not fuelling domestic price pressures.
(pb.pl)
