Global ratings agency Fitch downgraded Poland's GDP growth forecast for the year to 0.7 percent from 1.1 percent expected earlier in the year.
In its latest forecast, released on Monday, Fitch maintained its earlier prediction of 2.6 percent economic growth in 2024.
With the energy crisis in Europe less severe than expected and energy commodity prices falling significantly, we now project a better start to 2023, according to Fitch. We forecast growth of 0.7 percent for the whole year, instead of the 1.1 percent we expected in December. Fitch predicts domestic demand will be weak because high inflation has eroded real incomes and slowed consumer spending. The current level of Poland's reference interest rate, at 6.75 percent, has had a negative impact on household spending and business investment decisions.
The ratings agency said that overall investment will increase in 2023 because of a significant inflow of foreign direct investment -- PAP and an expected increase in public spending particularly on defence.