Poland's GDP to grow by 0.3 pct in 2023 says IMF

The International Monetary Fund (IMF) expects Poland's economy to expand by 0.3 percent in 2023, by 2.4 percent in 2024, and by 3.7 percent in 2025.

The predicted 0.3-percent growth for this year comes in the wake of the 4.9-percent GDP growth recorded in 2022, according to an IMF forecast presented in Warsaw on Friday.

Jan Kees Martijn, the head of the IMF mission to Poland, said that the slowdown, which started in 2022, would continue in early 2023, but the economy would start accelerating in the second half of the year.

According to Martijn, in the medium term, Poland's economic growth will exceed 3 percent if "the risks which can threaten this increase do not materialise."

The IMF also expects the public finance deficit to grow to 4.5 percent of GDP in 2023, from the 3.1-percent forecast earlier.

According to the IMF, inflation will likely fall to 7.2 percent at the end of 2023, to 5 percent at the end of 2024, and to 3.6 percent at the end of 2025.

The inflation target of the Polish central bank is 2.5 percent plus/minus 1 percentage point.

The IMF also said that the Polish banking system was stable and well capitalised, but warned that some legal and regulatory challenges might make it difficult for banks to finance the economy.