EBRD downgrades Poland's 2023 GDP growth forecast to 3.5 pct

The European Bank for Reconstruction and Development (EBRD) has revised down Poland's projected GDP growth in 2023 to 3.5 percent from 4.5 percent, according to the EBRD's latest report.

At the same time, the EBRD has maintained its forecast for Poland's 4-percent GDP growth this year.

According to the report, the downside risks related to geopolitical uncertainty and the humanitarian crisis caused by Russia's war on Ukraine, further commodity and energy price hikes and trade disruptions are likely to influence Polish GDP.

Nevertheless, the bank noted, domestic demand will be supported by the influx of more than two million refugees from Ukraine.

The EBRD also said that although the structural challenges, posed by this influx are considerable, especially in housing, healthcare and education, refugees can help fill labour shortages.