Fitch downgrades Poland's GDP growth forecast for 2024
Global rating agency Fitch has lowered Poland's economic growth forecast to 2.2 percent in 2024 from the 2.5 percent expected earlier.
At the same time, the agency's forecast for GDP growth next year remains unchanged at 3.2 percent.
"We expect private consumption to improve this year and next, supported by the recent minimum wage increase, welfare schemes, strong wage growth and falling inflation," the agency wrote.
"Fiscal policy is also set to remain relatively loose this year, though weak growth in Germany is likely to weigh on the Polish economy," it added.
Fitch has also lowered its forecast for Poland's average annual inflation at the end of 2025 to 3.0 percent from 4.0 percent, with the assumption that the government will maintain energy price freezes for this time period.
The agency also expects that Poland's Monetary Policy Council, the central bank's rate-setting body, will cut interest rates by 25 basis points in the fourth quarter of 2024, followed by a total of 100-bps cut over the course of 2025.
Among the three major rating agencies, Moody's offers Poland the highest rating, at the A2 level. According to Fitch and S&P, Poland's rating is A-. All three give Poland a 'stable' outlook. (PAP)
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