Poland's GDP to grow 1.2 pct in 2023, 3.5 pct in 2024 - researcher IPAG
The Institute for Economic Forecasts and Analyses (IPAG) has downgraded Polish GDP growth in 2023 to 1.2 percent from 1.5 percent previously forecasted.
In 2024, the Polish economy will expand by 3.5 percent, IPAG said in a report published on Wednesday.
"According to IPAG estimates, the growth rate of gross domestic product in the first quarter of 2023 was negative and amounted to -0.9 percent. This was the first decline in GDP after eight quarters of its growth. Previously, a negative economic growth rate was recorded in the fourth quarter of 2020," IPAG wrote.
Among the most important reasons for the decline in economic growth the researchers named high interest rates, inflation (especially high prices of energy) responsible for a decrease in the purchasing power of the population, and the heightened level of uncertainty due to the ongoing war in Ukraine.
According to IPAG, the GDP growth rate will slightly accelerate in the coming quarters to reach the annual level of 1.2 percent in 2023 and increase to 3.5 percent in 2024.
The forecast puts the average inflation rate this year at 12.8 percent.