The European Bank for Reconstruction and Development (EBRD) has improved its forecast for Poland’s economic growth this year to 2.9%.
The institution previously expected the Polish economy to grow by 2.7%.
At the same time, it has kept its forecast for the country’s 2025 GDP growth unchanged at 3.5%. However, according to the latest Regional Economic Prospects report published on Wednesday, “growth in the Bank’s regions is projected to pick up to 3.6%.”
The report states that output in EBRD regions will grow by 3.0% in 2024, up from 2.5% in 2023, “despite challenges stemming from global geopolitical tensions, including growing limitations on trade.”
The EBRD invests in economies across three continents. According to its website, EBRD regions include 38 economies from central Europe to Central Asia, the Western Balkans and the southern and eastern Mediterranean, and more recently, Lebanon, the West Bank, and Gaza.
The financial institution anticipates continued growth in domestic demand due to Poland’s moderately loose monetary policy and declining inflation.
Additionally, the bank stated that the country is anticipated to receive augmented EU funding, which will bolster public investment.
However, risks for the country include a potential rise in inflation and increasing dependence on foreign financing, the EBRD added.
The latest report, entitled “Taming inflation,” highlights decreasing inflationary pressures relative to 2023, “which was marked by an economic slowdown due to high energy prices resulting from the war on Ukraine and post-Covid recovery.”
At the same time, it has kept its forecast for the country’s 2025 GDP growth unchanged at 3.5%. However, according to the latest Regional Economic Prospects report published on Wednesday, “growth in the Bank’s regions is projected to pick up to 3.6%.”
The report states that output in EBRD regions will grow by 3.0% in 2024, up from 2.5% in 2023, “despite challenges stemming from global geopolitical tensions, including growing limitations on trade.”
The EBRD invests in economies across three continents. According to its website, EBRD regions include 38 economies from central Europe to Central Asia, the Western Balkans and the southern and eastern Mediterranean, and more recently, Lebanon, the West Bank, and Gaza.
The financial institution anticipates continued growth in domestic demand due to Poland’s moderately loose monetary policy and declining inflation.
Additionally, the bank stated that the country is anticipated to receive augmented EU funding, which will bolster public investment.
However, risks for the country include a potential rise in inflation and increasing dependence on foreign financing, the EBRD added.
The latest report, entitled “Taming inflation,” highlights decreasing inflationary pressures relative to 2023, “which was marked by an economic slowdown due to high energy prices resulting from the war on Ukraine and post-Covid recovery.”
