NBP revises its GDP and inflation forecast downward
14:34
According to the Central bank NBP, Poland is expected to record lower GDP growth and lower inflation than seen back in March.
NBP forecasts Poland's GDP to grow by 3.2 percent this year, accelerate slightly to 3.5 percent in 2017 and grow by 3.3 percent in 2018.
After Q1 GDP growth slowdown, GDP will gradually accelerate, mainly in relation to the child subsidy program PLN 500+, the impact of which is expected to subside as of H2 2017, the document reads.
The output gap is expected to close gradually but remain negative throughout the projection horizon, reaching -0.1% of potential GDP at end-2018.
Inflation growth will be hampered by the expected "merely moderate" increase in import prices, while the increase of cost pressure in the economy will also be curbed by the forecasted low growth in unit labor costs.
CPI is expected to run at -0.5 percent in 2016, 1.3 percent in 2017 and 1.5 percent in 2018.
