Poland’s GDP to grow by 5 pct in 2021: Central Bank

The Polish economy will expand by 5 percent this year, while inflation will reach 4.2 percent, the National Bank of Poland (NBP) said in its July projection.

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On Monday, NBP published the July inflation report, which includes the latest projection of this factor. According to the central projection path, inflation in 2021 will amount to 4.2 percent, 3.3 percent in 2022 and 3.4 percent in 2023.

“The reason for raising the CPI horizon inflation relative to the March projection is the correction of all its main components. The rise in inflation in 2021 is a combination of a number of factors of varied nature. Firstly, the revision of the consumer price path results from a stronger than expected recovery in demand, associated with a significant easing of socio-economic restrictions in the country... Secondly, higher inflation is driven by tensions in global supply networks, leading to delays in the production and distribution of some goods,” the report stated.

The central projection path also shows that this year, food prices will increase by 2.4 percent, next year by 2.7 percent and in 2023 by 3.2 percent. In turn, energy is to become more expensive this year by 9.1 percent, next year by 5 percent and in 2023 by 3.4 percent.

NBP also published a projection of GDP growth. According to the central projection path, Poland’s GDP will increase by 5 percent in 2021, by 5.4 percent in 2022 and by 5.3 percent in 2023. In the March projection, the central path predicted that GDP in 2021 would grow by 4.1 percent, and in 2022 and 2023 the economic growth would amount to 5.4 percent.