Poland's central bank, which has its base rate at 6.75%, forecasts growth of 0.7% in 2023. (Reporting by Jason Hovet in Prague and Anna Wlodarczak-Semczuk in Warsaw; editing by Jason Neely)
Jan 30 (Reuters) - The Polish economy, the biggest in
central Europe, slowed less than expected in 2022, maintaining
solid growth for the whole year even as high inflation begins to
increasingly damage demand.
Central Europe's economies started facing recession risks in
the last half of 2022 and analysts see slowdowns in 2023, with
the impacts of high energy bills, war in Ukraine, and weaker
consumer spending becoming more visible.
Yet Poland has entered the new year on a bit stronger
footing than others, according to statistics office data on
Monday.
Poland's gross domestic product (GDP) rose by an annual 4.9%
last year, a touch above expectations of 4.8% in a Reuters poll.
That followed growth of 6.8% in 2021.
"This very good result is to a large extent the effect of a
very good first half of the year," said Grzegorz Maliszewski,
chief economist at Bank Millennium.
"The second half of the year brought a clear slowdown in
economic activity, because the effects of higher inflation and
higher interest rates became apparent."
Inflation in Poland and around the region is at double-digit
rates, eating into workers' paychecks more and more, which
analysts said was seen in slowing consumer activity even in the
full-year data.
The statistics office did not break down data into quarterly
figures, with fourth-quarter flash estimates due on Feb. 14.
Analysts expect the Polish central bank to maintain a stable
rates policy this year.
Central banks around the region, having sharply raised
interest rates in year-long hiking cycles started in 2021, have
sought to keep policy steady to help navigate the slowdown.
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