Polish economic growth likely to continue decelerating in 2020

The Polish zloty is facing downward pressure due to sell-off on emerging markets and new speculations concerning the attitude of the European Commission towards Polish legislative reform. The Polish economy is showing additional signs of deceleration.

Yesterday, the Polish Statistical Office showed that the Polish economy grew at only 4 percent pace in 2019, suggesting that the year-on-year GDP growth was just 3 percent in the fourth quarter. The details published also suggest that the demand growth was facilitated mainly by household consumption; on the other hand, retail sector and industry were solid drivers on the supply side. One sector that saw sluggish growth not only throughout 2019, but also in the past quarter, was the construction sector.

“We expect the Polish economy to continue slowing down in 2020, although it will still grow much faster than the Eurozone, or the neighbouring Czech or Slovak economies. The flow of transfers from EU structural funds, which is still very strong, and the highly accommodative monetary policy should keep the GDP above 3 percent this year”, said KBC Market Research in a report.