Wages expected to grow by over 10 pct this year says central bank

Paweł Supernak/PAP

Wages in the Polish economy are likely to increase by 10.8 percent on average this year and by 9.4 percent in 2023, according to a central bank official.

"However, in real terms, wages will go down," Jacek Kotlowski, the deputy director of the National Bank of Poland's analyses and economic research department, told reporters on Tuesday.

Having admitted that wages went up by 13-14 percent in the manufacturing sector, Kotlowski said that increases in the entire economy were much slower.

According to the NBP, wages grew by 9.7 percent in the first quarter of the year, and by around 10.7 percent in the second quarter.

Kotlowski said that there were stronger signs confirming that the demand for labour had been growing at a slower pace, and added that, according to the stats office, the employment growth rate fell by 2.4 percent in May while the average wage in enterprises was below market expectations.

"This can suggest that wage pressure cannot grow so fast... It seems that we have nearly reached the labour demand peak," he said.

"In light of the economic slowdown, this demand will likely start to weaken," Kotlowski concluded.