Poland’s economic growth slows down

Poland’s economic growth slowed down to 4 percent year-on-year in 2019 after a 5.1-percent growth in 2018, and the rate is projected to fall further in 2020, the country’s Central Statistical Office (GUS) said in a flash estimate on Wednesday.

According to the GUS,

domestic demand in Poland increased by 3.8 percent and investment by 7.8 percent last year.

Subdued private consumption and the weak performance of the manufacturing sector in the eurozone, especially in Germany, negatively impacted the Polish economy, ING Bank said in an article on Wednesday.

Given that Polish companies maintain only limited economic ties with countries in Asia, the impact of the trade war was rather benign.

ING Bank expects Poland’s gross domestic product (GDP) to increase by three percent year-on-year in 2020, which is lower than the local consensus of 3.3 percent.

The article said that infrastructure outlays should be low as Poland has passed the peak in the European Union (EU) funding cycle. Investment surveys are gloomy, and the country’s small and medium-sized enterprises have shown a lower propensity to spend due to additional burdens, such as higher labor costs following the minimum wage hike, rigorous tax policies and institutional deterioration.

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Source: Xinhua – WARSAW