12:12 11 January 2025
Piotr Arak Highlighs Game-Changing Predictions for 2025
Dynamic political and economic shifts in 2025 will shape the global economy, with Poland poised for significant changes, according to VeloBank’s latest report, 5 Predictions for 2025. Chief Economist Piotr Arak of VeloBank highlights a rebound in Polish investments, improved corporate profitability, and persistent stagnation in Germany.
After a sluggish 2024, investments in Poland, driven by EU recovery funds (KPO), are expected to contribute 0.5-1.0 percent to GDP growth. Infrastructure and technology sectors will play a leading role in this recovery.
Germany’s GDP is projected to grow by only 0.7 percent, hampered by high energy costs and weakening export competitiveness. A new government in 2025 will face structural challenges.
The Polish Monetary Policy Council is likely to reduce interest rates by 50 basis points by the third quarter of 2025, following global monetary easing trends.
Lower borrowing costs and EU funds are set to boost the profitability of Polish firms, which struggled with low margins in 2024.
And, finally, progress in resolving the Ukraine conflict could stabilize Europe, promoting international trade and investment.
(WBJ)
