11:29 28 December 2024
Polish Stock Market Faces Uncertainty Amid War in Ukraine and Inflationary Pressures
As long as the war in Ukraine continues, significant growth in the Polish stock market remains unlikely. Analysts from XTB predict that this geopolitical factor will have a greater influence on market indices in 2025 than the fundamental data published by companies.
"The Polish economy showed no clear signs of improvement in 2024, while inflationary pressures remained high, strengthening the Polish currency. Consequently, the prospect of rapid interest rate cuts has receded. Current forecasts suggest that first-rate reductions might occur by the end of the first half of 2025. Of course, if inflationary pressures ease, there is room for earlier cuts between the first and second quarters of 2025. This could accelerate the recovery cycle for investments in Poland and provide much-needed support for sectors under pressure from high interest rates, such as construction," the report stated.
From the stock market’s perspective, the potential for interest rate cuts in 2025 places the Polish market in a state of uncertainty, according to XTB analysts. The market's recovery trajectory hinges on external factors, like geopolitical stability, and domestic economic policies to address persistent inflation.
(ISBnews)
