Poland's GDP to grow 3.8 pct in 2021, 4.5 pct in 2022 - researcher IPAG

Poland's economy will expand by 3.8 percent this year, and in 2022 the GDP growth will be 4.5 percent, the Institute for Economic Forecasts and Analyses (IPAG) predicts.

The GDP's decline in Q1 was deeper than previously expected due to the epidemic-related shutdown of a large part of the economy, the institute wrote in its quarterly macroeconomic forecast for 2021-2022, published on Wednesday.

According to the IPAG, a record-breaking pace of growth should be expected in Q2 2021, largely due to the low reference base in Q2 2020 when the crisis began.

The Polish economy will start making up for the losses from the last year and will return to the growth path, the forecast said.

The growth will continue to be driven mainly by domestic demand which is likely to grow by 3.5 pct this year and by 4.7 percent next year, according to the researcher.

Consumption is foreseen to increase by 3.8 percent in 2021, and by 4.5 percent in 2022.

Investments are not expected to return to the growth path until the second half of the year.

The improvement in the economic situation in 2021 will lead to a drop in the unemployment rate to 6.0 percent at the end of the year, the institute said.

The forecast puts the average inflation rate this year at 3.5 percent.