17:29 23 January 2025
PKO Bank Polski: data indicates a slow recovery that should not generate excessive inflationary pressure
December 2024 data on retail sales, industrial production, and construction activity in Poland indicate a slow economic recovery without excessive inflationary pressure, according to PKO Bank economists. Retail sales rose by 1.9% y/y and 9.9% m/m but fell short of the 3.8% market consensus. Consumer caution and a high savings tendency persist, dampening significant spending.
Notably, car sales surged by 25.1% y/y due to pre-regulatory demand, while categories like furniture, electronics, and clothing declined, reflecting cooling in the real estate market. Consumer sentiment improved in January but remains subdued for major purchases. Economists expect construction to recover in 2025, supported by EU funding and the National Recovery Plan, driving further economic growth.
