Polish economy is accelerating in first quarter, but weaker than expected

Polish economic activity in the first quarter of 2024 is driven by higher household incomes and low inflation, although economic growth is weaker than expected. According to analysts, poor industrial production, construction, and slightly slower retail sales will result in a weaker GDP growth rate. Retail sales increased by 6.1% y/y in March, with notable increases in categories such as automotive, fuel, and food.

Economists point out that wage growth is leading to a restoration of savings, resulting in moderate consumer demand recovery. Household consumption, a key driver of economic growth, may be weaker than projected. Despite some positive retail sales data, certain sectors like furniture and household appliances have seen a slowdown. Overall, the expectation for GDP growth in the first quarter is around 1.5% y/y, less than previous forecasts.

Source: inwestycje.pl