OECD lowers Polish GDP growth forecast

The Organization for Economic Cooperation and Development (OECD) forecasts that Poland's GDP will grow by 4.4 percent in 2022 and by 1.8 percent in 2023, the June edition of the OECD Economic Outlook said. In the December edition of the report, the Organization expected GDP growth of 5.2 percent and 3.3percent, respectively.

"Economic growth will slow significantly over the next two years. Inflation is expected to remain elevated in 2022 but is likely to peak late in the year. Weaker real incomes and high levels of uncertainty should lead to a significant slowdown in consumption growth, with investment and trade growth weakening. Increased fiscal spending will partially offset these shocks in 2022," the report reads.

According to the OECD, the effects of greater uncertainty should subside in 2023, and although the announced EU embargo on Russian oil will put additional upward pressure on energy prices, inflation should slow as monetary policy continues to tighten. Core inflation should also decline but is likely to remain elevated. Fiscal policy will support economic activity, helped by spending from EU funds under the Recovery and Resilience Facility, but monetary tightening will constrain growth. 

(ISBnews)