World Bank cuts Poland's GDP growth forecast

The World Bank has trimmed its forecast of Poland's GDP growth in 2022 by 0.8 percentage points to 3.9 percent owing to the impact of the war in Ukraine.

In the 'War in the Region. Europe and Central Asia Economic Update' report, the World Bank said that the Russian invasion of Ukraine has impacted the economies of Europe and Central Asia.

In January, before Russia attacked Ukraine, the World Bank expected the Polish economy to expand by 4.7 percent this year.

However, even at a reduced pace, Poland's GDP growth may be stronger than the average for Central Europe.

Poland, which is hosting close to 60 percent of all Ukrainian refugees, can expect an increased demand for public services and housing, which will put additional pressure on public finance.

On the other hand, increased domestic demand can provide positive short-term stimuli for the economy.

In 2023, Poland's GDP growth is expected to reach 3.6 percent, a 0.2 percentage point increase compared to the January forecast.