Polish economy slows down
23:19
The Polish economy may also suffer from the war in Ukraine. Some investment slowdown is possible. But on the other hand, admitting such a large group of refugees means greater expenses in Poland and an expenditure impulse worth 1.4 to 0.7 percentage points of GDP. Therefore, one may expect a slightly weaker economic growth than assumed before the war, with the continuation of high demand pressure and high price pressure. The central bank declared that it would raise interest rates in order to stop the rise in prices and strengthen the zloty – because it also acts anti-inflationary by limiting external price pressure.
“We have revised the GDP forecast downwards. We assume that it will be such a strange slowdown – because, on the one hand, there will be a deterioration in foreign trade with eastern and western partners. At the same time, we raised our inflation forecasts. We assume that the average price increase this year will amount to 10-11 percent, and 8-9 percent next year,” Rafał Benecki, chief economist, ING Bank Śląski, said.
He believes that the National Bank of Poland will continue to raise interest rates.
