WARSAW: The National Bank of Poland issued a prognosis on the state of the Polish economy, the Polish Press Agency reported.
According to the report, in 2015, 2016, and 2017, Polish gross domestic product is expected to rise by 3.6, 3.4, and 3.6 percent respectively. In terms of inflation, the NBP predicts a negative value of 0.8 percent in 2015 and a positive value of 1.5 percent a year later. Only then could the inflation target be barely achieved: the desirable value of inflation in Poland is 2.5 percent with an acceptable deviation of 1 percentage point.
GDP growth is expected to be bolstered predominantly by rising consumption and investment by the domestic private sector. Lower energy prices influenced by the plummeting price of oil are likely to contribute vastly to CPI inflation remaining below 0 percent. The other factor pre-empting overall price level to increase are the food prices, which result chiefly from increases in supply due to conducive meteorological conditions in the 2014/15 season.
One has to keep in mind that the predictions by the Economic Institute of the National Bank of Poland assume interest rates will remain constant.
