Poland’s Q2 GDP growth beats expectations 

Poland’s economy grew faster than anticipated in the second quarter, with gross domestic product (GDP) expanding by 3.2 per cent from April to June.

This marks a notable increase from the 2 per cent growth recorded in the first quarter, according to preliminary data released on Wednesday. Analysts had forecast 2.7 per cent growth for the period, based on a Bloomberg survey of 21 economists.

The stronger-than-expected performance reduces immediate pressure on the central bank to cut interest rates. Despite the regional economic challenges and high local borrowing costs, Poland’s economy has shown gradual improvement this year.

Unlike its regional peers, the Polish central bank has held off on lowering rates, citing concerns over potential inflationary pressures. Central bank governor Adam Glapinski has indicated that any easing might be delayed until 2026.

Prime Minister Donald Tusk has criticised the current monetary policy as “restrictive” and blamed it for slow economic growth.

Meanwhile, Finance Minister Andrzej Domanski expressed concern over the sustainability of consumption-driven growth, noting that key sectors like industry and exports are showing signs of weakness.

The second-quarter GDP growth is the highest Poland has seen since the third quarter of 2022. Inflation, which had largely remained within the central bank’s target range for most of the year, accelerated to 4.2 per cent in July.

Attribution: Bloomberg

Subediting: M. S. Salama