Global ratings agency Fitch downgraded Poland's GDP growth forecast for this year to 0.7 percent from the 1.1 percent expected earlier in the year.
In its latest forecast, Fitch maintained its earlier prediction of 2.6 percent economic growth in 2024.
With the energy crisis in Europe less severe than anticipated 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, rather than the 1.1 percent we expected in December. Fitch predicts domestic demand will remain weak because of high inflation, which has eroded real incomes and slowed consumer spending. The reference interest rate of Poland, which is currently at 6.75 percent, has had a negative impact on household spending and business investment decisions.
A significant inflow of foreign direct investment - PAP and an expected increase in public spending particularly on defence will provide an important offset that will result in overall investment increasing in 2023, according to the ratings agency.