'We are ready for any scenario': NBP President

An article by the President of the National Bank of Poland, prof. Adam Glapiński was published by Dziennik Gazeta Prawna daily.

"Despite many question marks – concerning the transmission of the virus, but also the impact of the pandemic on the decisions of economic agents – the NBP took swift and decisive measures last year that significantly mitigated the negative impact of the pandemic shock on the economy," Glapiński wrote.

In his opinion, monetary policy decisions along with fiscal policy measures ensured effective support for the Polish economy.

"This success was reflected not only in the GDP data, according to which the decline in the domestic product in Poland was more than twice lower than the European average. Its most important dimension is the reduction of the scale of costs incurred by Polish families and Polish entrepreneurs due to the pandemic. Significant economic recovery is expected already in the summer months, which is reflected in the March NBP projection, which provides for a very positive economic development in Poland in the coming years," we read further.

The NBP projection predicts that core inflation – even though it is also increased by the rise in administered prices – will gradually decline over the next year. The projection also suggests that in the coming years the dynamic growth in economic activity will be accompanied by a gradual increase in core inflation, however, the total price growth will remain in line with the NBP target.

"Of course, all predictions are subject to uncertainty, especially those concerning the end of the projection horizon, ie 2023. A lot will depend on the development of the pandemic and its impact on economic growth in Poland and Europe," the NBP president noted. 

(WBJ)